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Reasonable royalty rates

Article Abstract:

Licensing agreements typically involve profit-sharing arrangements. The '25% royalty rule' is a popular technique for determining a fair profit-sharing arrangement. The rule suggests that equitable royalties in licensing deals that are based on sales ought to be equivalent to an appropriate share of the licensee's pre-tax profit from the use of a license. It is also advantageous as it can be used effectively in the presentation of expert evidence when a court requires a reasonable estimate of hypothetical royalties in a dispute over intellectual property theft.

Author: Cole, Stephen R.
Publisher: The Canadian Institute of Chartered Accountants
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1999
Business Methods, Licenses, Patents & Trademarks, Economic aspects, Intellectual property, Business planning, Royalties, Royalties (Intellectual property), Licensing agreements, Profit sharing, Licencing agreements

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It's what you know that counts

Article Abstract:

Business valuators must be well-informed to be able to appear more credible to people they are trying to persuade. They cannot rely on documents and financial records alone in making generalizations. They must conduct secondary research, including extensive interviews with company managers. They must remember that courts only want the best overall valuation. Thus, valuators must have adquate knowledge on business competition, management techniques, industry trends and other valuable information.

Author: Cole, Stephen R., Campion, John A.
Publisher: The Canadian Institute of Chartered Accountants
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1993
Analysis, Tax consultants, Practice, Valuation, Tax courts

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Will that be cash or equity?

Article Abstract:

Chartered accountants in the past were prevented from taking shares in a client's company, but this position is changing in 2001. Strategies for assessing whether to take cash or stocks and the right way to do this are presented.

Author: Cole, Stephen R., Kanee, Robert P.
Publisher: The Canadian Institute of Chartered Accountants
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 2000
Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Financial Regulation NEC, Laws, regulations and rules, Financial services industry, Financial services, Investments, Commercial law, Accountants, Financial management

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