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Example documentationExample: Transaction Tiering with Multiple IPs and Common Scale Basis

 

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

  • Two or more IPs

  • Different royalty rates for the IPs

  • A common scale basis for the IPs (quantity or value scale)

  • One tiering group containing all IPs

In this example, the system cumulates the sales volume for all IPs in the tiering group to determine when the next scale level is reached and calculates the appropriate royalties rate for each unit sold.

Royalties rate for IP 1 (quantity scale):

  • Up to 100 units: 1 USD for each unit

  • Up to 500 units: 5 USD for each unit

  • More than 500 units: 12 USD for each unit

Royalties rate for IP 2 (quantity scale)

  • Up to 100 units: 5 USD for each unit

  • Up to 500 units: 10 USD for each unit

  • Up to 1,000 units: 12 USD for each unit

  • More than 1,000 units: 15 USD for each unit