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Example documentationExample: Transaction Tiering with Change of Scale Rate

 

You need to set up a license acquisition contract with the following:

  • One IP

  • Two royalties items with different royalties rates

  • One tiering group that contains the two royalties items

In this example, a change occurs in the scale rate, effective as of a certain date. This is reflected in the contract by the two royalties items with different royalties rates.

Royalty agreement for royalties item 1: January 1, 2008 — March 31, 2008

  • For up to 1,000 units: 8% of the sales

  • For more than 1,000 units: 10% of the sales

Royalty agreement for royalties item 2: April 1, 2008 — December 31, 2008

  • For up to 1,000 units: 9% of the sales

  • For more than 1,000 units: 11% of the sales