Royalty Rates
| Category | Surveys | Average Royalty |
|---|---|---|
| Accessories | 1 | 8.9% |
| Aerospace | 3 | 4.0% |
| Apparel | 3 | 6.8% |
| Automotive | 8 | 3.3% |
| Baby Goods | 1 | 6.0% |
| Baked Goods | 1 | 5.2% |
| Books – Softcover | 1 | 7.5% |
| Books – Hardcover | 1 | 10.0% |
| Building & Construction | 1 | 5.6% |
| Business Services | 1 | 11.9% |
| Chemicals | 7 | 4.3% |
| Child related | 1 | 6.3% |
| Computers | 6 | 4.6% |
| Consumer Goods | 3 | 4.8% |
| Domestics | 1 | 7.3% |
| Education Related | 1 | 8.3% |
| Electronics | 9 | 5.1% |
| Energy & Environment | 4 | 8.0% |
| Entertainment | 1 | 15.5% |
| Diagnostics | 1 | 3.5% |
| Distribution | 1 | 5.2% |
| Fast Food | 1 | 5.1% |
| Food | 7 | 4.4% |
| Footwear | 1 | 10.0% |
| Franchises | 1 | 5.0% |
| Furniture / Home Furnishes | 1 | 7.0% |
| Government / University | 2 | 7.1% |
| Healthcare Products / Equipment | 7 | 6.4% |
| Hospitality / Leisure | 2 | 4.5% |
| Housewares | 1 | 7.0% |
| Industrial Products | 1 | 6.4% |
| Internet | 2 | 8.2% |
| General Manufacturing | 2 | 6.4% |
| Machine/Tools | 5 | 4.8% |
| Maintenance Services | 1 | 6.9% |
| Media & Entertainment | 2 | 6.5% |
| Music / Video | 1 | 7.0% |
| Medical Equipment | 1 | 4.0% |
| Novelties / Gifts | 1 | 8.3% |
| Personnel Services | 1 | 12.5% |
| Pharmaceuticals / Drugs | 6 | 7.5% |
| Pre-Clinical | 1 | 3.0% |
| Phase I | 1 | 7.5% |
| Phase II | 1 | 11.5% |
| Phase II | 1 | 15.0% |
| Launched | 1 | 20.0% |
| Research Reagents (e.g. expression vector, cell culture, media supplements) | 1 | 3.0% |
| Diagnostic Products (e.g. monoclonal antibodies, DNA probes) | 1 | 3.0% |
| Therapeutic Products (e.g. monoclonal antibodies, cloned factors) | 1 | 7.5% |
| Vaccines | 1 | 7.5% |
| Animal Health Products | 1 | 4.5% |
| Plant/Agriculture Products | 1 | 4.0% |
| Printing | 1 | 5.4% |
| Publishing | 1 | 10.6% |
| Biotechnology | 1 | 7.0% |
| Pharma & Biotech | 3 | 5.0% |
| Real Estate | 1 | 7.4% |
| Restaurants | 1 | 4.6% |
| Retail | 1 | 6.1% |
| Semiconductors | 4 | 3.7% |
| Services | 2 | 5.9% |
| Software | 6 | 9.6% |
| Sporting Goods | 2 | 7.7% |
| Stationery / Paper | 1 | 10.0% |
| Telecom / Communications | 3 | 5.8% |
| Toys & Games | 3 | 9.7% |
| Travel | 1 | 5.6% |
| Trademarks and Copyright | 1 | 10.6% |
| Greeting Cards & Giftwrap | 1 | 3.5% |
| Household Items (cups, sheets, towels) | 1 | 5.5% |
| Fabrics & Apparel | 1 | 6.0% |
| Posters & Prints | 1 | 10.0% |
| Toys & Dolls | 1 | 5.5% |
Compiled using our database of 42 royalty surveys.
Please note that royalties may be spread over a range from 0% to three times the “average royalty” and that the above average royalty rates should only be used to support royalty rates determined using first principles.