I need advice on a royalty agreement for IP that I own.

Royalties charged for the use of intellectual property vary widely.  If an intellectual property is foremost in defining or providing the functionality of a product or service, the royalty fee may be a substantial percentage of the revenue received for the product or service by the licensee.  Alternatively, if the licensed IP is merely incidential to the covered product or service, the royalty payment is typically a much smaller portion of the gross revenue for the covered item. Payment terms also may vary.  In come cases, a substantial sum is paid up front when the license is granted.  In many cases, royalties are simply paid periodically as a percentage of sales.  Many royaltiy agreeements combinde minimum periodic payments with additional remitance of a percentage of sales. Carefully drafted royalty agreements focus on gross sales of the licensee rather than profits of the licensee, because determination of gross sales is much more ascertainable than a determination of profits (profit figures can be manipulated with clever bookkeeping, while gross sales are pretty easily verified). I am available to review your royalty arrangement and offer an opinion whether, in light of the facts particular to your case, the arrangement seems fair and workable. Anthony Claiborne Claiborne Intellectual Property Law Services 425.533.6132