Pharma Licensing: Explore differences between Royalty rate & Royalty base

Royalty rate : The appropriate royalty rate depends on numerous factors including the relative bargaining strength of the licensor and the licensee, profit potential, the size of the territory, how well the trademark is known, the competitive situation in the marketplace relating to the products or services involved.

Royalty base : The base amount upon which the royalty rate is calculated whether it be called gross sales, gross profits, net sales or net profits or some other expression.

Learn in details about the Royalty operating under the licensing deal – Insight on Royalty Rate, How to calculate Royalty, Royalty Stacking and Royalty Splitting >> Learn more