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The government-mandated royalty rate is 10.5 percent of the gross revenue minus the cost of public performance. The average rate per stream is about 200b$0.005200b.
In most cases, licensors prefer a royalty rate that falls within 25% to 75% range of the sublicensing income. Their stake usually amounts to more than half of all profits. In rare cases, the licensee can negotiate a rate split and apply their own royalty obligation to the sale of sub-licensed products.
Practitioners and licensing executives often refer to three basic types of voluntary licenses: non-exclusive, sole, and exclusive. A non-exclusive licence allows the licensor to retain the right to use the licensed property and the right to grant additional licenses to third parties.
A EULA, which may also be referred to as software license, is written to enforce specific use limitations, such as only installing the software on one computer. Some EULAs limit the user's right to copy software, including copying the software for backup purposes.
Proprietary software licenses. The hallmark of proprietary software licenses is that the software publisher grants the use of one or more copies of software under the end-user license agreement (EULA), but ownership of those copies remains with the software publisher (hence use of the term "proprietary").
The 25% rule also refers to a technique for determining royalties, which stipulates that a party selling a product or service based on another party's intellectual property must pay that party a royalty of 25% of the gross profit made from the sale, before taxes.
Royalty rates vary per industry, but a good rule of thumb is between 2-3% on the low end, and 7-10% on the high end. I have licensed consumer products for as low as 3% and as high as 7%, with 5% being the most common and a generally fair number.
The difference between an End User License Agreement (EULA) and a Software License Agreement (SLA) depends on intended usage. The EULA generally governs the continuous use of the software by a group of individuals. Meanwhile, an SLA targets a specific entity for a finite period.
Royalty payments are computed by multiplying the royalty rate against net sales. For example, a royalty rate of 5% multiplied by net sales of $1,000 equals a net sales royalty of $50. Royalty rates for licensing vary depending on the artwork involved.
The difference between an End User License Agreement (EULA) and a Software License Agreement (SLA) depends on intended usage. The EULA generally governs the continuous use of the software by a group of individuals. Meanwhile, an SLA targets a specific entity for a finite period.