Licensing: Did You Know? Royalties

The royalty rate is a percentage of the merchandise sales that is paid by the licensee for the rights to use the licensor's marks on its product.

Typically, in the collegiate licensing industry, royalties are based on the wholesale price of licensed merchandise. Average royalty rates vary depending on the industry, whether it is collegiate, arts and entertainment, toys, sports, videogames and software or one of many others.

In the coming weeks, we will identify royalty terminology and trends for these industries and more. Stay tuned!

The SMA Team