Profitability and royalty rates across industries | KPMG | BE

Profitability and royalty rates across industries: Some preliminary evidence

Profitability and royalty rates across industries

Exploring the relationship between profitability and royalty rates across industries.

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Profitability and royalty rates across industries

This paper explores the relationship between profitability and royalty rates across industries. Royalty payments can be interpreted as a profit sharing mechanism. In other words, by receiving royalty income, a technology licensor shares the profit streams generated from the licensee’s efforts in commercializing the patented technology.

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