Figure 10: How a 9% royalty rate on net revenues is the same as 5% on gross revenues

Chapter 09

Royalty rates for a licence are often quoted as being in the range of 5-10%. However, it is just as important to consider 5-10% of what. A rate of 5% levied on all revenues before deductions for tax or discounts (the Gross Revenue) can be the...

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