Standard royalty rates for various industries. Calculation of the royalty rate and assessment of the amount of license fees when transferring rights to a trademark to a state-owned company. Basic methods for determining royalty rates

Calculation of the royalty rate and assessment of the amount of license fees when transferring rights to trademark state company.

Sometimes it becomes necessary to calculate royalty rates for government entities– the copyright holder of the trademark. In this case, the specifics of the state structure impose typos on the process of calculating the base royalty rate and assessing the amount of the license fee for using a trademark; trademark government organization solves, first of all, the problems of identification, rather than the problems of creating additional cash flow and increasing the commercial client base, as is the case with private corporate structures. However, it should be noted - leasing a trademark by a state company has a number of positive aspects.

The use of a state company’s trademark determines an additional package of financial, production and image opportunities and preferences. This package of features includes the following:

1. A more flexible position of contractors and suppliers in connection with the system of formal and informal/image guarantees of the state corporation in relation to its licensees. The difference with an unbranded company is the possibility of reducing industry average prices for goods and services received, the possibility of significant deferred payments and other financial conditions, which, in the practice of evaluating investment projects, can significantly capitalize market value companies;
2. Significantly higher position in relations with external organizations, including state and municipal authorities, banking structures and other commercial organizations;
3. Successful implementation of projects by Licensees under the trademarks of a state company strengthens the overall strength of the brand, creating a package of real options and synergistic value.

The benefits of such schemes are obvious for similar licensing agreements there is a need to calculate the royalty rate and the amount of license fees.

Below is an algorithm for calculating the royalty rate when estimating the amount of license fees for using a trademark.

1 step. Calculation of the base royalty rate.

The base rate is determined based on industry standards, as well as the practice of transactions of Russian companies.

The table below shows the standard (approximate) royalty rates used by specialized large foreign trade organizations in relation to such a base based on an analysis of the world practice of concluding licensing transactions in various industries (Federal State Unitary Enterprise "Litsensintorg").

Industry average royalty rates.

To more accurately calculate the base royalty rate, you can refer to completed international projects for the transfer of intellectual property rights in multi-industry companies that are similar, if not in activity, then in the degree of coverage and diversification.

Data on the terms of transactions with intellectual property.

A. S. Yastrebov

Valuation of a patent, license for an invention, utility model, industrial design using the royalty exemption method is used to assess the value of these types of industrial property.

The patent owner grants another person the right to use the IP object for a certain fee (royalty). Royalty is expressed as a percentage of the total revenue received from the sale of goods produced using the patented product. Under this method, the value of IP is the present value of a stream of future royalty payments over the economic life of the patent or license.

The royalty amount is determined based on market analysis.

Royalty waiver method. The method is used in three versions, differing in the calculation base (gross revenue, additional profit, gross profit). Calculation of the cost of intellectual property using the royalty exemption method is carried out in several stages.

On first stage a forecast of sales volumes for which royalty payments are expected is made (taking into account the product life cycle).

On second stage the royalty rate is determined. The data is taken from tables of standard royalty amounts published in specialized literature. For example, you can give averages and ranges of royalty rates with results intellectual activity as a technological basis for the production of various groups of products.

The royalty rate usually ranges from 1-12%. Most often it is set within 2-6%. For some industries, there are empirical scales of average market royalties, often called the market license price. However, the average royalty price can vary greatly across countries around the world. Thus, for the US pharmaceutical industry the royalty range is 3-10%, in Germany - 2-10%, in France - 4-5%. Examples of royalty rates in the Russian Federation are given below.

Royalty rates, %, for various industries of the Russian Federation

From the licensee's balance sheet profit:

From the gross volume of sales of licensed products:

Royalty rates may vary by year of the license agreement: either increase or decrease as the duration of the license agreement increases. It is possible to use a sliding royalty rate depending on the volume of production or sales of products by the licensee. When production volumes increase, royalties decrease, and when production volumes decrease, royalties increase. A sliding royalty rate encourages the licensee to produce and sell products. For the licensor, the situation is also not getting worse, as profits are growing.

Rates of current royalties can be differentiated depending on the type of license, the duration of the agreement, the volume of production of licensed products, their selling prices, domestic and export sales. Royalty rates, %, for dual-use goods, the export of which is controlled in accordance with the Decree of the President of the Russian Federation dated August 26, 1996 No. 1268

On third stage The economic life of the patent or license is determined. The legal and economic service life may not coincide, so a realistic forecast of the duration of payment should be made.

On fourth stage Determine expected royalty payments by calculating percentages of projected sales.

On fifth stage All costs associated with securing a patent or license are deducted from expected royalty payments.

On sixth stage calculate discounted profit flows from royalty payments.

And finally, on seventh stage— determine the sum of the current values ​​of profit streams from royalty payments.
The formula for the cost of a patent or license based on royalty is as follows:

where P s is the cost of a patent or license;
x - serial number of the considered period of validity of the license agreement;
T - validity period of the license agreement, years;
V is the volume of determined production output under the license in x year, pcs., kg, m 3 ;
R x - royalty amount in the xth year;
Z x - sales price of products under license in i-th year, conditional units;
K d - discount factor.
Profit advantage method. The method is often used when estimating the value of inventions. The value of the invention in this case is determined by the profit advantage expected to be obtained from its use. Profit advantage refers to the additional profit brought by the assessed IP. It is equal to the difference between the profit received from the use of inventions and the profit that the manufacturer receives from the sale of products without using the invention. This annual profit advantage is discounted by the expected period of its receipt.

Thus, the cost of the invention can be calculated using the formula:

where S persons is the cost of the license;
T - number of forecast years;

To calculate additional profit within the framework of this method, the methodology of the royalty exemption method (second modification) can be used.

A method for estimating the value of intellectual property through the equity participation ratio. The method was developed by Rospatent and is used only for the assessment of inventions and utility models. In the production of products, either one or several inventions can be used.

In the first version, the basic formula is:

where Poi is the profit that accrues to the invention being valued (I);
P total - profit received by the enterprise as a result of the sale of products that are created using this invention;

KDU 0I - coefficient of equity participation of the evaluated invention.

where K " 1 is the coefficient of achievement of the result;
K " 2 - complexity coefficient of the solved technical problem;
K " 3 - coefficient of novelty.

In the second option, the basic formula is:

i.e., we select the maximum values ​​of these coefficients among the coefficients of all evaluated inventions:

Cost approach methods. These methods play a supporting role.

Cost benefit method. The value of a IIMA facility is the cost savings resulting from its use.

When calculating the value using this method, it is necessary to take into account the factor of the current value of the annuity.

Market approach. The method is based on the principle of an efficiently functioning market in which investors buy and sell assets of a similar type. Market value is the most likely price that an intangible asset should achieve in a competitive and open market, subject to all conditions of fair trade, conscious actions of the seller and buyer, and without the influence of illegal incentives.

In this case, the following conditions must be met:

• the motivations of the buyer and seller are typical;
• both parties are well informed, aware of the nature of the assets and act, in their opinion, taking into account their interests;
• The intangible asset has been offered for sale for a long time;
• payment was made in cash;
• the price is normal, not affected by specific financing and sales conditions.

This definition of market value fully complies with the standard definition formulated in the law “On Valuation Activities in the Russian Federation”.

Data on similar transactions are compared with the intangible assets being valued. The advantages and disadvantages of the assets being valued compared to selected analogues are taken into account by introducing appropriate amendments.

It is necessary to take into account that, due to the specifics of the object being valued, there are significant restrictions on the use of the market approach when valuing non-material materials.

Combined method. It combines both the methods of income and cost approaches and is used primarily to evaluate the investment assets contributed to the authorized capital of an enterprise.

Basic formula:

where C ois is the cost of OIS, den. units;
Зр — reduced development costs, den. units;
Z p.o - reduced costs of legal protection, den. units;
Z m - reduced marketing costs, den. units;
P - profitability;
К m.с — coefficient of obsolescence;
K t-e.z - coefficient of technical and economic significance;
And r is the reduced value of revenue from sales of products produced using OIS within the forecast period;
K R - probability distribution coefficient depending on the level of implementation of licensed technology

Practical calculation of the market value of an IP object using the example of an invention

The availability of documents for intangible materials is assessed using the example of the invention “Mixture for obtaining a protective chemical coating and a stabilizing composition for it.”

Necessary documents for evaluation of the invention:

1) name of the IP;

2) description of the OIS;

3) documents of title for intellectual property: patents, certificates, licensing agreements, copyright agreements, etc.

After familiarizing yourself with the basic documents, depending on the specifics of the object, the goals and purpose of the examination, you may need:

• characteristics of IP or goods produced using IP, if necessary, in comparison with similar or competitive ones;
• sources of income from the use of intellectual property;
• description of the market for OIP;
• costs incurred for the acquisition of rights and use of intellectual property;
• cost and unit price of goods using OIS;
• technical (consumer), operational, environmental and economic indicators receiving income from the use of intellectual property;
• increasing sales volumes of specific types or all products of an enterprise using OIS;
• increasing prices depending on product quality;
• savings in production when using OIS in specific types of products or in all manufactured products;
• revenue from the sale of intellectual property on tangible media;
• proceeds from the sale of property rights or the sale of licenses to use intellectual property;
• savings on capital investments in the development of IP.

The costs incurred are analyzed:

• to acquire property rights to intellectual property;
• for development in production and organization of production and sale of intellectual property or goods using intellectual property;
• on legal and other types of protection of intellectual property;
• for marketing of intellectual property or goods using intellectual property;
• to insure risks when implementing projects using OIS and (or) their profitability.

This list of documents is preliminary in nature and can be shortened or expanded after the appraiser has thoroughly familiarized himself with the examination task.

An examination of law enforcement documents is carried out:

• inventions are protected by patent law and IP law;
• a patent is a legal document;
• the invention under evaluation has patent No. 2496522, registered in the State Register of Inventions on March 15, 1997;
• the first patent holder was the scientific and technical enterprise "Limited Liability Company "Polymer Chemistry"";
• authors are: Ivanova B. B., Viktorova E. M., Markova L. N., Strakhova L. A.;
• the patent was assigned to a group of authors under agreement No. 21649/2005, registered on August 22, 2005 by the department of licenses and contractual relations of the Russian Agency for Patents and Trademarks;
• date of receipt of the application by Rospatent July 16, 1996;
• a description of the invention is presented for the RF patent, according to which the invention relates to compositions for obtaining a chemical coating and makes it possible to ensure the stability of the coating properties, high corrosion resistance with minimal chemical consumption; essence of the invention: a composition is proposed for obtaining a protective chemical coating, which improves the basic technical and economic characteristics of the product;
• patent validity period is 20 years; date of receipt of the application by Rospatent 07/16/1996; therefore, the patent has not expired;
• the payment of fees to maintain the patent in force was verified; it has been established that everything necessary payments are produced in full and on time.

The market value of the invention is calculated.

The evaluation of an invention is carried out in two ways:

• the method of exemption from royalties using the method of assessing the value of intellectual property through the equity participation ratio;
• creation cost method.

Royalty waiver method.

1. A forecast is made of sales volumes for which royalty payments are expected. Remuneration under the agreement with Khimprom LLC for the right to use the invention is expected within 10 years. The forecast is made taking into account the life cycle of products manufactured using the invention being evaluated.

2. The royalty rate is determined from the table “Standard royalty rates from the gross volume of sales of licensed products” published in the publication “Business Valuation” edited by Dr. Econ. Sciences, Professor A. G. Gryaznova, Doctor of Economics. Sciences, Professor M. A. Fedotova (M.: Finance and Statistics, 2002).

The invention under evaluation is a composition for obtaining a protective chemical coating and a stabilizing composition for it. This composition belongs to the class of paint and varnish coatings. Therefore, you can take a royalty rate for paints that is 2-3%. For the first 5 years we will take the maximum rate; in subsequent years the royalty rate is reduced to the minimum.

The economic life of a patent during which royalty payments are expected is 10 years. The costs of patent enforcement consist of fees paid annually to maintain the patents in force.

These fees are taken from the Mospatent website:

To calculate discounted profit flows from royalty payments, we derive the discount rate, which we calculate using a cumulative construction model.

Because of the risk associated with future earnings, the discount rate should exceed the risk-free rate and provide a premium for all types of risks.

We calculate the discount rate using the formula:

R=R f +X,

where R f is the risk-free rate; X - risks .

The patent for the invention is planned to be sold to a limited liability company, therefore, the risk-free rate cannot be derived using stock market quotes. Therefore, as a risk-free rate, we will take the yield on federal loan bonds - 9.51.

Main stages of calculation:

1. We select the five largest enterprises in the industry for the production of paint and varnish coatings.

2. We calculate the risk of company size X using the following (formula):

where X r. k is the risk of company size;

X max - maximum risk equal to 5%;

N is the net assets of the company being valued on the balance sheet;

N max - average net assets largest companies of this industry according to the balance, N max = 10,384 thousand rubles.

Thus,

3. Calculate the risk financial structure, characterized by the ratio of the enterprise's own and borrowed funds. Let's determine the coverage coefficient and the autonomy coefficient.

Coverage ratio calculated by the formula:

where О am — depreciation charges;

P 6 - balance sheet profit;

i T — interest paid on long-term loans;

i t — interest paid on short-term loans;

i k. 3 - interest paid on accounts payable.

Thus,

Using the coverage ratio, we determine the risk of the financial structure:

Autonomy coefficient calculated by the formula

where And c is the amount of equity capital;

In u is the balance sheet currency.

Thus,

The balance is considered unsatisfactory if the balance structure equity is 50%. In this case, the risk of the financial structure will be maximum - 5%.

If the autonomy coefficient is 0.61, then the risk of the financial structure will be 3.9%.

If there are several risks in the financial structure, we derive a single value as the arithmetic mean:

X f.s= (2.16+3.9)/2=3.04

4. We will calculate the risk of clientele diversification, knowing that 90% of the company’s revenue comes from one client, 100% of the revenue from three clients:

X d.c =[(0.9*3+1*1)/4]*5=4.62

Since the enterprise produces only one type of product, we assume the risk of production diversification to be maximum -
5 %.

Similarly, the risk of territorial diversification will be 5% (since the product sales market is one territorial unit). The average risk of production and territorial diversification will be 5%.

6. Leadership quality risk We will determine it expertly and accept it as 2%, since the company’s management is quite qualified.

7. Similarly, we define the risk of income predictability. The enterprise purchasing the right to the invention has entered into long-term contracts for the supply of products manufactured using the invention being evaluated with an enterprise that produces cars and operates stably on the Russian market. But since the economic situation in the proposed sales market is unstable, we will take the risk of income predictability to be 3%.

Costs associated with the creation and protection of intangible assets, thousand rubles

8. Let’s sum up all the risks and derive the discount rate:

R = 9.51 + 2.82 + 3.04 + 4.62 + 5 + 2 + 3 = 29.99.

Creation cost method. At the 1st stage, we will determine the amount of all costs associated with the creation and protection of intangible assets:

Z c =[(Z pi +Z p.oi +Z mi)(1+P/100)F tc ],

where Z pi is the cost of developing the i-th intangible asset;

Зp.oi — costs of legal protection of the i-th intangible asset;

Зmi — marketing costs of the i-th intangible asset;

P—revenue from the use of intangible assets in value terms;

F ts is the current value factor.

At the 2nd stage, we determine the coefficient that takes into account the degree of obsolescence of intangible assets,

Km.c=1-Td/Tn=1-0.35=0.65

At the 3rd stage, the residual value of intangible assets is calculated taking into account the coefficient of economic significance and the coefficient of obsolescence.
The use of the invention under evaluation ensures an improvement in the basic technical and economic characteristics of the technology, and, therefore, the coefficient of technical and economic significance is equal to 1.1:

Growth=ZsKm.sKt-e.z=1530.08*0.65*1.1=1094 thousand rubles (4.17)

Having assessed the invention, we agree on the results.

Determination of the weighted average cost of NML, thousand rubles.

The royalty rate is usually expressed as a percentage of the following basic indicators:

gross income

net income

additional profit arising from an enterprise using IP

unit price

cost price

unit production capacity

other basic indicators

The royalty rate must be at least:

Cover the licensor's costs associated with preparing an agreement on the transfer of intellectual property

Compensate for lost profits as a result of the appearance of a new competitor in the market represented by the licensee

Take into account at least the minimum compensation for the transfer of intellectual property to the licensee

Can take into account R&D costs

Basic methods for determining royalty rates:

Method based on standard royalty rates

Method based on the analysis of similar transactions (method based on the analysis of analogues taken in relation to previously concluded licensing transactions by the licensor and the method based on the application of royalty rates taken from previously concluded licensing agreements for similar products for a given industry)

Calculation methods based on profitability data

Adjustment to standard royalty rate

The royalty rate taken from the table of standard rates is an average (indicative), so it is recommended to adjust it to take into account the factors of the specific valuation situation. There is a classification of factors influencing the size of royalties compiled by Azgaldov and Karpova. They distinguish 3 groups of factors:

factors reflecting the legal aspects of the transaction

Volume of transferred rights - The highest royalty rates will be for exclusive licenses, somewhat lower for non-exclusive licenses, since in this case mutual competition between licensees is not excluded.

Territory of the license agreement - As a general rule, the royalty rate will monotonically depend on the size of the territory

Scope of legal protection - for a patent license, royalties will be greater than for a non-patent one

factors reflecting the obligatory aspects of the transaction

The condition of the license agreement on the mutual exchange of improvements is that the royalty rate usually monotonically depends on the size of the exchange in the field of scientific and technical achievements to improve the licensed object

Dependence by the licensee on the licensor - this means dependence in the supply of raw materials, materials, equipment, etc., necessary for organizing production under the license. The greater the dependence, the higher the royalty rate will be.

Availability of competitive offers (this means competitive offers for the sale of technologies comparable in economic efficiency to those purchased). If there is competition, the royalty rate will be lower.

factors reflecting the economic aspects of the transaction

The size of the required capital investments - They are necessary to organize the production of products under license. The larger the investment, the lower the royalty rate will be.

Volume transmitted technical documentation- with the full volume of transferred technical documentation (design, technological, etc.), the royalty rate will be higher than with an incomplete volume, for example, only design documentation.

The licensee's estimated expenses for its own alternative R&D - these R&D are aimed at developing RIA comparable in economic efficiency to the purchased one. The lower this alternative R&D, the lower the royalty rate will be.

The licensee's technological capabilities to make a profit from RIA - these capabilities depend on the degree of technological development of the subject of the license. The lowest royalty rate will be in cases where the subject of the license is an idea, the highest for industrial use.

Lecture No. 5

Reduced royalty rate

The absence of a patent usually reduces the royalty rate by 10-30% compared to a similar object transferred under a patent license.

Transfer of know-how - the royalty value is reduced by 20-60% compared to the table, depending on a number of factors:

20-40% - if the intellectual property is transferred under a simple license

20-40% - if significant capital investments are required for the development of IP

40-60% - if the know-how is transferred to an intellectual property object known on the market, but still of interest to the licensee

Calculation methods for strengthening the royalty rate:

Cost-effectiveness method(Novoseltsev method)

Royalty=(Profitability* )/(1+ profitability)

Profitability refers to the profitability of industrial production and sales of products under a license, defined as the ratio of the licensee’s profit to the cost of production and sales of products under a license. It is permissible to determine profitability using official statistical data on the profitability of individual industries.

- the share of the licensor’s profit in the total profit of the licensee. The value can be chosen depending on the scope of the rights being transferred and the availability of patent protection.

The main advantages of the Novoseltsev method include the possibility of increasing the royalty rate for high-tech industries, since a decrease in production costs leads to an increase in the rate of profitability. In addition, the proposed formula explains the increase in the royalty rate when the licensor's share in the licensee's profit increases by reducing production and commercial risks.

Mukhamedshina method

Royalty=L*profitability

Profitability - gross profit margin, defined as gross profit per unit value of net sales (sales excluding indirect taxes)

Advantages: less labor costs

Disadvantage: less accuracy

L - royalty share in the licensee’s gross profit

Example: The annual turnover of the company's products under the franchise is 400,000,000 rubles. This concession scheme for product sales helps to increase production profitability from 10%, using available fixed and working capital (without the use of new technologies) to 25%, given that it is possible to gain real advantages over competitors due to higher quality products using the franchisor’s technology , as well as the presence of guaranteed demand for products and the absence of alternative technologies, we accept the franchisor’s share in the franchisee’s profit at the level of 20%. Calculate the amount of annual payments to the franchisor.

Solution: Royalty=(0.25*0.2/(1+0.25))*400,000,000= 16,000,000

A modified formula that allows taking into account the interests of franchisees6 takes into account 2 types of profitability: basic profitability, which the enterprise already had in the absence of new technologies, and total profitability, which is defined as the sum of basic profitability and additional profitability.

Taking into account the modified formula formula:

Royalty=(0.15*0.2/(1+0.25))*400,000,000=9,600,000

An example of a problem using the royalty exemption method:

It is required to determine the market value of a utility model used for more efficient water purification, if it is known that the revenue from sales of filters using this utility model in the first forecast year will be 5,000,000 rubles. Expert calculations have shown that it is economically feasible to use the utility model for 5 years; in the first 3 years, revenue growth is expected by 10%, in the next 2 years by 5%. It is also necessary to take into account the costs of maintaining legal protection of the utility model, priority date PM 10/16/2010. The premium for the risk of investing in investments aimed at introducing a utility model into production is 15%.

Task: it is required to calculate the cost of the invention, provided that it ensures the production of new products that have been mastered in production for the first time and have qualitatively new technical characteristics. It is a device design with a folded control system. This invention has no analogues. The discount rate taking into account the risks of investing in this project is 25%.

We will solve by the method of allocating a share of the profit.

Task No. 2

Find the cost of an exclusive license for an invention for a period of 5 years, the invention relates to heating systems, the discount rate is 18%

Lecture No. 10

Task: Currently, almost all water treatment plants use aluminum sulfate as a coagulant, the demand for which in Russia is about 600,000 tons/year. In this case, some water utilities use expensive aluminum hydroxychloride. Was developed new technology with a lower cost, OKAF is used as a coagulant, it can be used for both water and wastewater treatment, while the dose of OKAF is 2.3 less than that of aluminum sulfate. Priority date - 04/01/2010

The planned production volume in the first three years of OKAF coagulant is 5000 tons, OKAF solid product is 1000 tons. In the fourth year, demand is expected to increase by 5% for OKAF coagulant and by 3% for OKAF solid coagulant. It is required to determine the cost of an exclusive license for an invention valid throughout the Russian Federation for a period of 4 years at a discount rate of 27.5%.

Solution: royalty release method

Addition to the income approach:

25% Rule (or Rule of Thumb)

Under this rule, the potential licensor is owed 25% of net income before taxes and interest on the loan. The author of this rule is Robert Goldscheider.

The court's official criticism of the 25% rule related to the failure to take into account the facts and circumstances of a particular situation, in particular the IP item itself, the industry to which the item belongs, and the relationships between the contracting parties. Moreover, the court rejected the possibility of using this rule as an initial guideline in negotiations, since being initially incorrect, it leads to erroneous results.

Task: The Berkut enterprise has patented its invention “crushing and grinding separation complex disc 1”. The method itself and the design of the device were tested for world novelty, which showed that there are no analogues in the world today. The disk 1 installation improves the technological process and allows you to achieve the highest technical characteristics in the process of recycling metallurgical waste. The date of creation of the invention is 03/06/2006, priority date is 08/25/2007. it is assumed that the invention will be in demand within 6 years from the date of assessment. It is required to determine the market value of the invention as of the current date, if the long-term rate of the government bond market is 7.73, the premium for the risk of investing in IP for the first 2 years will be 19.35%, the next 2 years 20.45%.

Royalties are usually represented by a rate P (in foreign literature the letter R is usually used), expressed as a percentage of the base - the effect (result) of the licensee (buyer).

The following can be used as a base:

Gross income (effective gross income, sales amount, sales volume);
- net income;
- additional profit (arising from the enterprise that purchased and uses the IP);
- price of a unit (batch) of products;
- cost;
- unit capacity of the workshop (production);
- cost of the main processed raw materials, etc.

Most often, such a base is taken as the price of a unit of production or the amount of sales (effective gross income - EIG). Experience shows that with such a basis, there is the smallest number of conflicts regarding the payment of license fees between the parties to a licensing transaction. The fact is that the initial data necessary to calculate the amount of royalty payments in this case can easily be found in the licensee’s accounting documents.

Table 1 shows standard (approximate) royalty rates used by specialized large foreign trade organizations in relation to such a base based on an analysis of global practice in concluding licensing transactions in various industries. This table allows you to pre-determine the approximate royalty rate for each specific property.

Table 1. Expanded list of standard royalty rates - as a percentage of the unit price or the amount of sales (sales volume)

In order to obtain more accurate information on the value of royalty rates for individual industries, reflecting the current situation on international market trading licenses is possible on a paid basis.

It is advisable to clarify the approximate royalty rate P (taken from Table 1) taking into account the following factors that influence its value in the specific conditions of a transaction with intellectual property (IP).

Factors reflecting the legal aspects of the transaction

Scope of transferred rights. The highest royalty rates will be for full licenses - that is, when the licensee receives the use of the IP. Somewhat lower (but also quite high) royalty rates occur with exclusive licenses (when the licensor retains the right to use the IP). The lowest royalty rates occur in the case of non-exclusive (simple) licenses, since in this case mutual competition between other licensees is not excluded.

Territory of the license agreement. The royalty rate depends monotonically on the size of the territory.

Scope of legal protection. Royalties are higher for a patent license than for a non-patent license.

Factors reflecting the obligatory aspects of the transaction

Terms of the license agreement on the mutual exchange of improvements. The royalty rate usually depends monotonically on the volume of interchange of improvements (both secured and unsecured) legal protection).

Dependence of the licensee on the licensor. This refers to the dependence in raw materials, materials, equipment, parts and components necessary to organize production using the transferred technology. The greater the dependence, the higher the royalty rate.

Availability of competitive offers. This refers to competitive offers for the sale of technologies comparable to those being purchased. If there is competition, the royalty rate will decrease.

Factors reflecting the economic aspects of the transaction

Amount of required capital investment. They are necessary to organize production of products under license. The larger the investment, the lower the royalty rate.

Volume of transferred technical documentation. With the full volume of transferred technical documentation (design, technological and operational), the royalty rate will be higher than with an incomplete volume (for example, only design documentation).

Estimated costs of the licensee's own alternatives. These R&D activities are aimed at developing IP that is comparable in economic efficiency to the purchased one. The lower these , the lower the value of the IP and, accordingly, the lower the royalty rate.

The licensee's technological capabilities to make a profit from the intellectual property. These possibilities depend on the degree of technological development of the subject of the license. That is, the subject of the license can be an idea, a technical solution, semi-industrial or industrial use. The lowest royalty rate is in cases where the subject of the license is an idea, the highest is for industrial use.

The reputational ability of the licensee to profit from the IP. If the licensor has good goodwill and (or) a trademark and the licensee can directly or indirectly use this information when advertising licensed products, then the royalty rate in this case may be increased.

Volume of licensed products produced by the licensee. In connection with the goals pursued by the licensor, the dependence of the royalty rate on the volume of product output can be direct and inverse. Often this dependence is direct (“more output - higher royalty rate”).

Share (D) of the transferred IP in the creation of income (D) for the licensee. The greater the share of income in the licensee's total income that comes from the transferred IP, the higher the royalty rate. Unfortunately, there is still no data in the literature on the quantitative dependence of the royalty rate on most of these factors. And for those factors for which such an influence is known and depends on the specifics of different types of IP, the relevant information is given below.

Selection of royalty rates for industrial properties

The absence of a patent, as a rule, reduces the royalty rate by 10 - 30% compared to a similar object transferred under a patent license. Based on the fact that the cost of design documentation usually amounts to up to 30% of the cost of the entire package of technical documentation, when transferring only design documentation under a license agreement, it is advisable to reduce the royalty amount to 30% of the standard (tabular) rates. The standard royalty rates P shown in Table 1 usually apply to types of industrial property such as inventions.

Selection of royalty rates for know-how objects

If the license is for the transfer of know-how, the P value is usually reduced by 20 - 60% (compared to the table), depending on a number of factors. For example, it is reduced by: - ​​20-40% if the intellectual property is transferred under a simple (non-exclusive) license; - 20-40%, if the development of intellectual property requires significant capital investments (for example, for additional research); - 40-60%, if the know-how is transferred to IP, known on the market, but still of interest to the licensee; - 70-80%, if not the entire package of technical documentation is transferred, but only the design documentation.

Selection of royalty rates for industrial property and know-how

There is a tendency to increase the importance of OIP in the creation of new technologies, products, services, and therefore in practice there are increasingly cases where the P rate is taken equal to 20% and even 50% of the additional profit (or NPV - adjusted net income), the source of which is an assessed knowledge-intensive OIS. When evaluating IP for licensing purposes, the guidelines for adjusting royalty rates in Table 1 can be used. These guidelines are summarized in Table 2.

The standard royalty rates shown in Table 1 are N.V. Lynnik recommends using it for a turnover not exceeding 1.5 million dollars. With a total turnover of 1.5 to 2.5 million dollars, it is advisable to reduce the royalty rates indicated in the table by 10%. with a turnover of 2.5 to 5 million dollars, a 20% reduction can be accepted, etc.

For example, with a turnover of $5 million, the royalty rate is determined as follows: the first $1.5 million - no reduction compared to the rate indicated in the table; for exceeding 1.5 million dollars to 2.5 million dollars - the rate is reduced by 10°/o; for more than 2.5 million dollars - the rate is reduced by 20%. That is, if the tabulated royalty rate in this case is determined to be 3%, then the adjusted royalty payments will be equal in dollars:

0.03 x $1.5 million + 0.027 x $1 million + 0.024 x $2.5 million = $132,000

Other, more radical amendments are proposed in the brochure by I. S. Mukhamedshin “How to more effectively protect, sell or buy scientific and technical products.” The following adjustment factors are proposed for the tabular standard royalty rates, taking into account the cost of net sales:

R. Khametov describes the features of remuneration to the author (copyright holder) in the form of royalties, in relation to objects copyright(in particular - literary works). And although he does not quantify (does not express quantitatively) these features, it seems useful to give them brief description. He identifies the following main modern forms of royalty.

1. System of linear current payments. According to it, the author receives a certain percentage of the entire turnover of the copyright recipient (licensee) without any changes, depending on how many copies the copyright recipient (licensee) sells. This system is very simple and understandable; it is quite often used in practice.

2. Degressive reward system. According to it, the author receives a certain percentage, which decreases with an increase in sales of copies of the work or with an increase in the income of the recipient. For example, when selling for the first 100 thousand copies. - 10% remuneration, for the next 100 thousand - 9%, etc. With the correct calculation of interest rates, this system satisfies the interests of both the author and the recipient. It is used quite often in Western countries.

3. Progressive reward system. With growth, the rate of remuneration paid to the author increases. This system may hinder the promotion of sales of the work by copyright recipients. However, if demand for a work grows, such a system may be acceptable to both authors and copyright recipients (licensees).

4. Profit-based system. The basis for calculating the author's remuneration is profit from the sale of copies of the work, and not gross income. This system is often found in copyright agreements concluded by Russian authors. For them, such a condition is extremely unfavorable, since doubts often arise about the correctness of the calculations made by the recipient (licensee). And there may be intractable disputes over the amount of remuneration.

5. A system that minimizes the time to receive rewards. This form is often used if the author (copyright holder) intends to speed up the sale of copies of the work. In this case, the copyright recipient (licensee) provides the author with a lower amount of payments for a certain limited period. This form is used when intensifying the sale of a product that brings high profits, or when targeting a product to identify buyer groups and distribution channels. The disadvantage of this form is that beneficiaries seek to extend the validity of discounts by any means.

6. Minimum royalty guarantee system. Recently, the practice of stipulating in the copyright agreement the obligation of the legal recipient to guarantee minimum size royalties, which encourages the recipient (licensee) to intensify the sale of copies of the work.

7. System for guaranteeing the sale price of a copy of a work. A system that fixes the minimum selling price of a copy of a work, from which the royalty will be calculated, has a similar goal to the system of a guaranteed minimum royalty. The fact is that the recipient (licensee) may be able to sell legal copies of the work at reduced prices to the licensee's subsidiaries. This allows you to hide significant amounts of income from sales from the author (copyright holder). In this regard, it is considered appropriate to include in the copyright agreement a condition determining the size of the sale price of copies of the work, from which the royalty is calculated.

Sequence of actions when determining the royalty rate

Recommendations for determining the amount of royalties based on standard (tabular) rates were outlined above. However, this is only a special case. And the general case involves carrying out some other actions. Especially when it comes to concluding a licensing agreement for the transfer of IP. Their description is briefly given below in relation specifically to the case of concluding a license agreement.

As for determining the royalty rate by the appraiser in relation to the general case, here he will have to mentally act alternately as a licensor, then as a licensee. Of course, this requires much more labor and time for the appraiser and can only be justified by the special importance and value of the object being appraised. intellectual property(OIS). The algorithm for the general case of determining the royalty rate is as follows.

1. Determining an acceptable range of possible bets

1.1. Considering royalties as the minimum acceptable remuneration for the licensor

Fair (often referred to as reasonable) royalty rates should, at a minimum, firstly, cover the licensor's costs associated with preparing an IP transfer agreement. If the licensor, according to the agreement, must provide the licensee with additional technical information or assistance (further research work at the licensee’s request, training of the licensee’s specialists, participation in the launch of the licensed object, etc.), then the licensor must include these costs in the minimum remuneration.

Secondly, the royalty rate must compensate for the profits lost as a result of the entry of a new competitor into the market in the person of the licensee.

Third, R&D expenditures may be taken into account (albeit controversially). The ambiguity is caused by the following circumstance. If the object of the license agreement has already been mastered in the production of the licensor, then he has the opportunity to reimburse for R&D through the sale of products manufactured under the license. And the fact that the licensor has mastered the subject of the license increases the value of the license for the buyer, since it reduces its risk and must be taken into account at the second stage of agreeing on the royalty rate. In this case, it is logical not to include R&D costs when determining the amount of the minimum remuneration for the licensor.

If the object of the license agreement has not been mastered by the licensor, then it is advisable to take into account R&D costs when determining the amount of the licensor’s minimum remuneration. When selling a license to several licensees, it is necessary to distribute these costs between buyers in proportion, for example, to the volume of production under the license.

And finally, fourthly, the royalty rate must take into account at least the minimum compensation for transferring the IP to the licensee.

1.2. Consideration of royalties as the most acceptable alternative for the licensee.

The maximum royalty that a licensee can accept is equal to the cost of the best alternative that it could choose to purchase a license.

Such alternative solutions could be:

Carrying out own research and development work in this area;
- acquisition under license of comparable (similar) technology from another source;
- refraining from working with the licensor’s technology;
- free use of the licensor’s technology (albeit associated with the risk of prosecution and subsequent financial sanctions).

Identifying these alternatives gives the licensee a good idea of ​​the practical value of the subject matter of the license. If the licensee finds that few alternative solutions are available at relatively low cost, it will consider the licensor's proposed subject matter to be of limited value and will not accept high royalty rates. Conversely, if the subject of the license is protected by a strong patent (block of patents) covering an important area of ​​​​knowledge, it makes sense for him to agree to higher royalties.

The methods described above make it possible to determine extreme (extreme) values ​​of royalty rates: method 1.1 - the minimum acceptable for the licensor; method 1.2. - the maximum acceptable for the licensee. In contrast, the two methods outlined below make it possible to determine intermediate (from extreme) values ​​of royalty rates.

2. Determination of intermediate values ​​of royalty rates

2.1. Determination of royalty rates by analogy with previously applied rates

In domestic practice, for many enterprises and organizations, for the sake of efficiency, acceptable methods for determining the royalty rate may be:

The method based on using standard royalty rates (discussed above)
- a method based on the analysis of analogues taken in relation to licensing transactions previously concluded by the licensor,
- a method based on the application of royalty rates taken from previously concluded licensing agreements for similar products for a given industry.

Thus, method 1.1 will make it possible to reach the minimum royalty rates that the licensor can agree to, and method 1.2 will determine the maximum royalty rates that the licensee could agree to. The values ​​obtained from methods 2.1 and 2.2 (see below) make it possible to determine intermediate royalty rates. By using a combination of these four methods that is appropriate for a given situation, contracting parties can effectively determine the range of possible royalty rates and focus their attention on them during negotiations.

2.2. Determining the royalty rate using calculation methods that take into account the economic effect received by the licensee from using the IP

The royalty rate can be calculated using the following basic methods based on accounting: - the amount of additional profit of the licensee; - the licensor's share in the licensee's gross profit - production from the licensee. The methods classified in group 2.2 due to their importance will be discussed in detail later.

3. Negotiation of royalty rates obtained by different methods

Such approval is carried out by agreement of the parties involved in the licensing transaction, taking into account the royalty rates determined by methods 1.1; 1.2; 2.1; 2.2. If we are not talking about concluding a license agreement, but about evaluating IP using the income method, then the approval is carried out by the appraiser himself. At the same time, it is advisable for him to use a technology similar to that which is recommended to be used when reconciling IP assessments obtained by three different approaches - cost, market, and income.

Determination of royalty rates by calculation methods

Method for calculating the amount of additional profit of the licensee ("Marginal Royalty" method)

This method is most fully described in the books: Mukhamedshin I. S. “How to more effectively protect, sell or buy scientific and technical products.” The material below is mainly based on this work.

Advantages of the method. High accuracy of calculation results.

Disadvantages of the method. Sufficiently accurate and reliable data is required on:

Performance indicators of the licensed enterprise;
- performance indicators of enterprises taken as a basis for comparison;
- market of licensed products;
- technology market in the relevant field of production.

Scope of application of the method. Applicable only in cases where the economic effect of introducing a license or know-how is expressed in additional profit for the licensee. The royalty rate P is determined by the formula:

Р = lр Рп
where: P - royalty rate as a percentage of net sales,
lr - the licensor’s share of the licensee’s additional profit agreed upon by the partners under the licensing agreement,
Рп - marginal royalty rate i.e. the royalty rate due to the licensor, provided that all additional profits from the licensee go to the licensor.

Calculated by the formula:

Rp = Psd / Sp * 100,
where: Psd is the average annual additional profit of the licensee from the implementation of the license for the period of royalty payment (usually in hard currency);
Sp - the average annual cost of sales of licensed products for the period of royalty payment; determined by accounting documents.

The royalty rate R is calculated in three stages. STEP 1. The additional profit of licensee P and the marginal royalty rate Rp are calculated (using the methods outlined below). STAGE 2. Possible deviations of the values ​​of additional profit P and the marginal royalty rate Rp from the calculated values ​​are taken into account. STEP 3. The licensor’s share in the licensee’s additional profit is calculated and finally determined settlement rate royalty R. The sequence of actions at all these three stages is discussed below.

STAGE 1

Calculation of the values ​​of additional profit P and the marginal royalty rate Pp is carried out using one of the methods indicated below by the letters “a”, “b”, “c”. These methods are:

A) Method for determining Pezbur - savings in current and capital costs without taking into account the distribution of costs and income over time (the letter “a” will be added to the numbers of the calculation formulas);
b) Method for determining Pazur - savings on current and capital costs, taking into account the distribution of costs and income over time (the letter “b” will be added to the numbers of the calculation formulas);
c) Method for determining Pvts - the amount of additional profit from more high price for licensed products in comparison with the base one (the letter “c” will be added to the numbers of the calculation formulas).

METHOD "a" (distribution of costs and income - not taken into account)

This method is used when selling individual and related licenses, as well as unlicensed know-how if:

The additional profit of the Pezbur licensee is caused by savings on the costs of producing licensed products (but compared to industry average costs);
- the distribution of flows (PDS) by year for the licensee’s enterprise does not affect the amount of additional profit of the licensee Pezbur, due to the fact that:
- it coincides with the industry average distribution of PDS or
- there is no data on such distribution.

The term comparison base is introduced - an enterprise whose production and economic indicators simultaneously have the following characteristics:

The manufactured products are similar to the licensed ones;
- the capacity is close to the capacity of the licensee’s enterprise;
- it uses the usual, most common technology.

In this case, all indicators used are taken per unit of capacity of the licensee’s enterprise or per unit of output. If there is no data on the activity of the enterprise, you can use the corresponding industry average data. Then the calculation of additional profit and the marginal royalty rate (without taking into account distribution) is made using the formulas:

Pezbur = TZbur + KZbur,
Rpbur = Pezbur * 100 / Dc,
where: Pezbur - the average annual additional profit of the licensee from the implementation of the license (due to savings in current and capital costs) without taking into account the distribution of costs and income over time;
TZbur - the average annual value of the licensee's savings on current costs compared with the current costs of the base enterprise during the period of royalty payment (calculated using formula 5-a); KZbur - the average annual amount of savings for the licensee on depreciation of capital costs compared with the costs of the base enterprise during the period of royalty payment; Рп - marginal royalty rate; Ссн - the average annual cost of sales of licensed products for the period of royalty payment (determined from accounting documents).

TZbur = TZ/100 (iTZiTZi - PPjTZj),
Where:
TK - the amount of average annual current costs at the base enterprise, recalculated to the capacity of the licensee's enterprise (determined according to the accounting documents of the base enterprise);
ТЗi - the percentage of savings of the i-th element of the licensee's current costs compared to the costs of the base enterprise (determined by the accounting documents of the licensee's enterprise and the base enterprise);
ТЗi, ТЗj - the share of the i-th (j-th) cost element in the total value of the average annual current costs of the base enterprise (determined by calculation according to the accounting documents of the base enterprise);
PPj is the percentage increase in the costs of the j-th element compared with the costs of the base enterprise (if this occurs), determined by calculation in the accounting documents of the enterprise.

KZbur = VK/100 (iKZiKZi/ti - jPPjbKZj/tj),

Where:
VC - gross capital investment in the base enterprise, in terms of the capacity of the licensee's enterprise;
КЗi - percentage of savings according to i-th group capital costs of the licensee compared to costs at the base enterprise;
KZi, KZj - i-th share(j-th) group of capital costs in gross capital investments at the base enterprise ti, tj - 1st (j-th) group of capital costs at the base enterprise (in years);
PPjb - percentage increase in costs j-th group at the licensee, compared to costs at the base enterprise.

If the magnitude of the net savings on costs differs between the years of the royalty payment period, the net savings can be calculated for each year, and then its average annual value is calculated.

METHOD "b" (distribution of costs and income - taken into account)

This method is used when selling individual and related licenses, as well as unlicensed know-how, if:

The license or know-how is related to the construction of a new enterprise and its commissioning or the modernization of an existing enterprise;
- the object of the license or know-how includes an innovation that causes a reduction in the construction time or depreciation of enterprises, commissioning and bringing to design capacity and/or optimization of the distribution of capital investments;
- there is data that allows you to compare these indicators with the indicators of the base enterprise or with industry average indicators.

Method "b" is based on bringing the amount of capital investments and the licensee's expected income during the period of royalty payment to the current period of time and comparing them with similar indicators of the base enterprise. Therefore, the additional profit received by the licensee from using the IP is called “discounted additional profit”. Its value is determined by formula 7-b:

where: Pezur is the amount of the licensee’s reduced additional profit from saving current costs (in terms of accounting for distribution cash flows); n is the year of completion of construction of the licensee’s enterprise;
m is the year of completion of construction of the base enterprise;
T - royalty payment period (in years); Pvt - gross profit in year t at the base enterprise (including ), determined by the accounting documents;
ТЗt - savings on current costs in year t at the licensee’s enterprise, compared to the base enterprise;
SD - discount rate determined in the manner adopted when valuing any property;
KZtb - capital costs in the construction of the base enterprise in year t (determined from the accounting documents of the base enterprise);
KZtb - savings on capital costs (compared to the base enterprise) in year t during the construction of a licensed enterprise. Savings on current costs, taking into account the distribution of costs and income over time;

Determined by a formula largely similar to the formula:

TZur = Osl (TZiNPcibTsrzi - PPzj NPcjb Tsrzj),
Where:
Osl - the average annual output of licensed products (in physical terms), determined by accounting documents;
TZi - the percentage of savings of the i-th element of the licensee's current costs compared to the costs of the base enterprise (determined from the accounting documents of the licensee's enterprise and the base enterprise);
NPcib, NPcjb - average consumption rate of the i-th (j-th) cost element per unit of production at the base enterprise (in physical terms);
Tsrzi, Tsrzj - market price of a unit of the i-th (j-th) cost element;
PPzj is the percentage increase in the costs of the j-th element compared to the costs of the base enterprise (if this occurs).

Savings on capital costs are determined by a formula largely similar to:

KZur = VK / 100 (iKZiKZi - jPPjbKZj),

Where: VC - gross capital investment in the base enterprise, in terms of the capacity of the licensee's enterprise;
KZi. - percentage of savings in the i-th group of capital costs of the licensee compared to costs at the base enterprise;
КЗi, K3j - share of the i-th (j-th) group of capital costs in gross capital investments at the base enterprise PPjb - percentage of increase costs j-th groups at the licensee, but compared with the costs at the base enterprise.

If the net cost savings differ between the years of the royalty payment period, the net savings can be calculated for each year, and then its average annual value is calculated. The marginal royalty rate Rpur is determined by a formula similar in structure to the formula (but taking into account the distribution of cash flows over time):

Rpur = Pazur / Cppr,
where: Pezur is the average annual additional profit of the licensee from the implementation of the license (due to savings in current and capital costs), taking into account the distribution of costs and income over time, determined by the formula:

Pezur = TZur + KZur,
where: TZur is the average annual value of the licensee's savings on current costs compared to the current costs of the base enterprise during the period of royalty payment, taking into account the distribution of costs and income over time;
KZur - the licensee's average annual savings on depreciation of capital costs compared to the costs of the base enterprise during the period of royalty payment (calculated using the formula);
Sppr - net sales of licensed products for the period of royalty payment, determined by the formula:

Sppr = Cn / (1 + SD)t,
where: Сt - the cost of net sales of licensed products in year t, t = (n + l), (n), (n - 1),..., (n + T),
where: n is the year of completion of construction of the licensee’s enterprise:
T - royalty payment period (in years).

METHOD "c" (additional profit from a higher price for licensed products)

Additional profit Pl, as noted above, can also be obtained due to a higher price for licensed products compared to the base (analog price) and is calculated using the formula:

Pl = Vol (Tso - Tsa),
where: VOL - average gross volume of licensed products for the year during the period of royalty payment (in natural units);
Tso - unit price of licensed products;
Price is the price of a unit of product taken as the basic analogue.

The marginal royalty rate Rp is calculated using the formula:

Rp = VOL (Tso - Tsa),

Where: Spr is the average annual cost of sales of licensed products during the royalty payment period.

If additional profit is obtained by the licensee both from an increase in the price of licensed products and from savings on current and capital costs, it can be calculated using the following formula:

Pl = Ple + Plc,
where: Pl - additional profit of the licensee;
Ple - additional profit (with a plus sign) or additional costs (with a minus sign) of the licensee due to savings (or increase) in current and capital costs;
Plc - additional profit from increasing the price of licensed products. The marginal royalty rate is determined by the formula:

Rp = (Ple + Plc / Spr),

The result of the first stage is the receipt of estimated amounts of additional profit and the marginal royalty rate.

STAGE 2

At this stage, accounting is carried out possible deviations additional profit and marginal royalty rate from the calculated one under the influence of production and commercial risks.

A) Production risk is determined by the fact that the licensee's enterprise may not achieve design production parameters.

This depends on the degree of development and implementation of the licensed technology. And therefore, the additional profit may be less than the calculated value. In this regard, an amendment is made to the calculated additional profit of Plp and the marginal royalty rate Rpp depending on the degree of production risk. The amendment is made in accordance with the most likely percentage of the technology achieving the specified parameters. The following formulas are used for this:

Plp = Pl * l / 100,

Where: Plp - additional profit of the licensee adjusted for production risk; Pl - estimated additional profit of the licensee; l is the probability that the licensee’s enterprise will achieve the specified production parameters (in %).

Rpp - Rp * l / 100,

Where: Rpp - marginal royalty rate, adjusted for production risk;

Рп - estimated marginal royalty rate.

As a guideline, the probability values ​​l recommended by I. S. Mukhamedshin can be used, depending on the level of implementation of the licensed technology (see Table 3):

Table 3. Probabilities of the licensee achieving the planned production parameters

b) Commercial risk is associated with the fact that there is a possibility:

Incomplete use of enterprise capacity;
- incomplete sales of licensed products due to insufficient market demand and competition from manufacturers of similar products.

An adjustment to the estimated additional profit of Plc and the marginal royalty rate of Rpk, depending on the degree of commercial risk, is made in accordance with the most likely percentage of reduction in the cost of average annual net sales, compared to the calculated one, using the formulas:

Plc = Pl (100 - h) / 100,
Rpk = Rp (100 - h) / 100,
where: h is the most probable percentage decrease in the average annual cost of net sales compared to the calculated one.

The most probable percentage reduction in the cost of sales (h) is determined (in the case of a symmetric probability distribution) as the weighted arithmetic average of a series of possible percentage reductions in the cost of sales, weighted by the probabilities of each member of this series.

However, we have to admit that in the theory of property valuation there are still no practically applicable and sufficiently theoretically justified methods with the help of which practicing appraisers could calculate the values ​​of l. For example, using the arithmetic mean in this case is not the best solution.

STAGE 3

The calculation of the additional profit due to the licensor Plr and the actual royalty rate Rd is carried out using the formula:

Plr = Pl * l,
where: Plr - additional profit due to the licensor;
l is the licensor’s share in the licensee’s additional profit;
Pl - additional profit of the licensee.

Рд = Рп * l,
where: Рп - marginal royalty rate. It should be noted that the problem of determining the value of l is one of the weaknesses of the “marginal royalty” method.

The value of l depends on a large number of factors that are difficult to formalize. Attempts to take into account, if not all, then at least some of them, led to the development of proposals to reduce the subjectivity associated with their use. One of these proposals (used in international economic practice is given below in table form). It allows you to take into account the influence of 4 factors: - the licensee’s market share; - degree of exclusivity of the license; - presence of patents in the license; - degree of severity of market competition (see Table 4).

Table 4. Licensor's share l in the licensee's additional profit

1. For non-patent licenses, it is advisable to be guided by the minimum values ​​of the limits, for patent licenses - by the maximum.
2. The average share of licensed products in the total volume of products sold of this type on the licensee’s market, estimated for the period of royalty payment.
3. Determined based on an analysis of the market conditions for licenses and patents in the relevant industry. The l values ​​obtained using Table 4 are recommended to be adjusted depending on the expected change (during the royalty payment period) in demand in the licensee’s market for this type products.

The correction formula looks like:

L1 = l * Kd,
where the Kd value is determined using Table 5.

Table 5. Correction coefficient Kd, taking into account the predicted change in demand for licensed products.

Advantages of the method: very low labor and time required. Disadvantages of the method: less accuracy compared to the licensee's additional profit method.

Using this method, the royalty rate P is calculated using the following simplified formula:

P = L Pe,
where: L is the share of royalties (in %) in the gross profit of the licensee (determined in accordance with the recommendations set out in Table 6);
Re - profitability of production of licensed products, defined as gross profit per unit of cost of net sales - that is, sales excluding indirect taxes on sales (in %).

If information on the profitability of a particular licensee’s enterprise is, for one reason or another, difficult to access for the appraiser, average data on the profitability of the relevant industry can be used.

Note: it is advisable to adjust the figures indicated in Table 6, taking into account factors not taken into account in the table.

Advantages and disadvantages of the method: the same as the Mukhamedshin method. This method was proposed by O. Novoseltsev. It is based on the application of the formula:

P = Re * L / (1 + Pc),
where: Re is the profitability of industrial production and sales of products under a license, defined as the ratio of the licensee’s profit to the cost of production and sales of products under a license;
L - share (part) of the licensor’s profit in the licensee’s total profit from the production and sale of products under the license (in %).

A feature of this technique is the possibility of using the profitability values ​​of a specific enterprise. It can be calculated by the accounting department and the enterprise (this data, according to the Decree of the President of the Russian Federation, appears to be a commercial secret and can be obtained for a set fee from the State Statistics Bodies!). Or according to official statistical data on the profitability of individual industries in a specific period of time, which are regularly published in specialized publications, as well as in statistical and analytical reviews of the state of industrial production in periodical information sources.

For example, the weekly magazine "Economy and Life" published the profitability values ​​of individual industries in Moscow, in particular, chemical and pharmaceutical - 44%, electric power - 43%, alcohol - 43%, confectionery - 28%, railway engineering - 26 %, brewing - 25%, baking - 22%, oil refining - 20%. The Licensor's share in the Licensee's profit from production and sales can be selected depending on the volume of transferred rights, the degree of readiness of the licensed object and the availability of patent protection, which ultimately should reflect the business risks of commercial when organizing the industrial use of intellectual property, production and sale of products according to licenses.

Analysis of the functional dependence of the royalty value on the profitability of production under a license according to the formula explains, in the opinion of O. Novoseltsev, the downward trend in royalty values ​​for material-intensive and resource-intensive industries. In them, the increased cost of production and sales of products under license (due to increased costs for materials and other resources) leads to an increase in the cost of production and, accordingly, to a decrease in the profitability value for the same amount of profit.

At the same time, the increase in royalty values ​​for new high-tech technologies also becomes understandable, since advanced high-tech scientific and technical developments contribute (through the use of new material and resource-saving technologies) to reducing the cost of production, which, accordingly, increases the rate of profitability for the same mass profit. The use of the royalty rate according to the formula (24) proposed above in practical calculations also explains the increase in the value of royalties with an increase in the Licensor’s share in the Licensee’s profit by reducing the Licensee’s production and commercial risks. This happens by increasing the volume of transferred rights (ensuring licensing), the degree of industrial development of the subject of the license (reducing production risks of developing new products) and the presence of patent protection (protected state laws patent monopoly). Since all these factors ultimately contribute to increasing the likelihood of the Licensee achieving commercial success and generating additional profits.

It is easy to notice, however, that Novoseltsev’s method is an analogue of Mukhamedshin’s method and differs from it only in the use of the divisor calculation formula (1 + Re) in the denominator.

Royalty rate calculation method based on unit cost indicators

The advantage of the method: low labor and time costs. Disadvantages of the method: - lower (compared to the additional profit method) accuracy of calculations - the relatively rare existence of situations in which you can find all the information necessary to apply this method. Calculation formula:

P = L * KZu * Pvkl,
where: L is the share of royalties (in %) in the gross profit of the licensee (determined in accordance with the recommendations set out in Table 5);
KZu - specific capital costs per unit of sales (in relative shares);
Pvkl - gross profit per unit of investment (in%).

Both calculated indicators (KZu, Pvkl) are determined based on statistical data related to the relevant industry.

Form of remuneration in the form of lump sums

The term "lump sum" comes from the German word "pauschal" - taken in bulk.

This form It is advisable to use rewards when:

The basis for calculating the "royalty" fee cannot be determined practically;
- control over accounting and financial statements licensee;
- the costs of counting and control operations are disproportionately large in comparison with the expected results;
- the method or conditions of use of the subject of the license make it impossible to apply the rule of proportional remuneration;
- the entire range of rights in relation to the subject of the license is transferred to the licensee (similar to the purchase and sale agreement);
- a license agreement is concluded by a little-known independent licensee, when there is no real opportunity to exercise effective control over the licensee’s activities in using the licensed object;
- there is no industrial development of the subject of the license;

Based on the frequency of lump-sum payments, they are divided into:

A) one-time lump sum payment with receipt of money only once;
b) periodic lump sum payments, i.e. payment of strictly defined amounts in several ethanes depending on the use of the IP by the recipient (licensor).

For example, annual lump sum payments. Often the frequency of lump sum payments depends on the stage of implementation of the license agreement. In this regard, the following procedure is used: - 10 - 15% is paid upon signing the license agreement; - 15 - 20% is paid after mastering the technology; - the remaining 65 - 75% is paid at the end of the first year of production of licensed products.

Periodic payments in relation to copyright objects are divided into linear, progressive and degressive.

Lump sum payments are usually particularly beneficial to the licensor. Along with the absence of the need to exercise control over the activities of the licensee, it is associated with a one-time receipt of a fairly large amount cash. But sometimes this form of payment of license fees turns out to be unprofitable for the licensor. Indeed, in some cases, with a lump sum payment, he is deprived of the opportunity to receive excess profits from a significant expansion by the licensee of the volume of production of licensed products.

At the same time, the need to pay significant amounts before receiving a profit, as well as the higher degree of risk associated with the acquisition of a license, leads to the fact that the licensee does not always agree to pay the license fee in the form of lump sum payments. Determining the size of a lump sum payment by simple arithmetic addition of the amounts of payments determined on the basis of royalties for the entire period of the license agreement will be inaccurate due to the change in the “value” of cash depending on the period of its receipt, caused by the state of monetary relations.

By general rule, operating in the international trade of licenses, the licensor seeks to receive such an amount of lump sum payments that, if invested in the bank, would provide him with a profit equal in size and time to receipt of the license fee in the form of royalties. In turn, the licensee strives to reduce the price of the license when paying in the form of lump sum payments. The reduction factor is calculated using standard methods of financial mathematics using the formula.

Using the method, current payments in the form of royalties can be reduced to a lump sum payment. And, conversely, reduce the lump sum payment to the average royalty level for the entire period of the license agreement.

Combined form of remuneration

It should be borne in mind that in some cases the payment of license fees in the form of lump sum payments or in the form of royalties may be unacceptable for one of the partners or for the licensee and licensor at the same time. And, for example, in this case, the owner of the IP requires payment of a lump sum and subsequent ongoing royalty payments for the provision of a license.

In such cases, combined (mixed) payments can be used. In this case, initial (lump sum) payments are paid during the initial period of validity of the license agreement (usually after signing the license agreement), before the start of commercial use object of the license.

The rest of the license fee is paid in the form of royalties in the process of commercial use of the licensed object at the end of each reporting period. Initial payments in most cases are considered as an advance and serve as a kind of guarantee of the seriousness of the licensee’s intentions, which is very important for the domestic practice of trading licenses. At the same time, they allow you to recoup the costs of preparing and concluding a license agreement, producing and translating technical documentation, other tangible media of information about the transferred technology (samples, special equipment, devices), as well as fulfilling other terms of the agreement. Initial payments in certain cases may also offset the costs of research and development of the subject matter of the license.

It is recommended to set the amount of initial payments within the limits of up to 25% of the license price, determined in the form of royalties. To translate this value into combined payments, it is recommended to set the amount of the initial payments and then reduce the royalty rates accordingly.

In order to encourage the licensee to master the subject of the license, it is advisable in licensing agreements to provide for minimum guaranteed payments when paying license fees in the form of royalties, including in the presence of initial payments. They are recommended to be paid at the end of the reporting period. At the same time, it is not advisable to establish a dependence of payment on the results of mastering the subject of the license, production volumes and sales of licensed products. As already mentioned, it is desirable that the amount of the initial and minimum guaranteed payments does not exceed 25% of the total royalty payments. It is necessary to differentiate this amount depending on the types of license agreements (for a full and exclusive license - up to 75%, for a non-exclusive license - up to 50%). Annual minimum guaranteed payments are fixed in the text of the license agreement.
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