Substantiation of royalty rate within providing licenses in foreign markets

The first aspect of the research was focused on systematization of factors, that influence royalty rate and are to be regarded as the objects of initial appraiser’s analysis. Basing on specificity of license agreements in international markets, some important adjustments for traditional methods of royalty rate calculation are analyzed. Within the research we suggest a comprehensive approach for substantiation of fair licensor’s share in additional profit of licensee and algorithm of implementation of variable rate of royalty, that helps to optimize economic relationships between parties of license agreement

Keywords: icense agreement, rate of royalty, valuation of intellectual property, commercialization of intellectual property.

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Authors