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.
The sixth managerial paper in a series sponsored by KPMG’s Global Valuation Institute (GVI).
KPMG’s Global Valuation Institute (GVI) is pleased to introduce its third management paper.