Question

2.5 points

Under a licensing agreement, an inventor generally receives a royalty of about 50 percent of the sale of the
product.
True
False
Save Answer

Answer 1

Under a licensing agreement, the inventor's royalty percentage varies depending on the agreement terms and negotiations.

Step-by-step explanation:

The statement in the question is false. Under a licensing agreement, an inventor does not generally receive a royalty of about 50 percent of the sale of the product. The royalty percentage can vary greatly depending on the specific licensing agreement and the negotiations between the inventor and the licensee.

For example, in some licensing agreements, the inventor may receive a royalty as low as 3-5 percent of the sale, while in other cases, they may receive a royalty of 10-15 percent or even higher. It ultimately depends on the factors involved in the agreement, such as the type of product, its market potential, and the bargaining power of the inventor.

Therefore, it is important for inventors to carefully negotiate the terms of their licensing agreements to ensure they receive a fair and appropriate royalty percentage for their intellectual property.

Learn more about Licensing agreements for inventors