Product Royalties

What are product royalties?

This is a question every inventor should know the answer to. Product royalties allow you to get paid for your ideas and inventions. Product royalties are usage-based payments made by a licensee (company, person or organization) to the licensor (you) for the right to use an asset such as an invention, idea or intellectual property.

What is a product royalty agreement?

Also known as a licensing agreement, product royalty agreements are written contracts that are arranged between an inventor and a manufacturer, or a licensor and a licensee. They typically give the manufacturer or company the right to produce, market and distribute your product for a pre-determined period of time while paying an agreed-upon royalty fee.