Hi, I am a partner in a small technology company. Recently we recieved our global patents in a technology that is perfect for the beverage industry. We do have a licensing attorney handling our most recent negotiation. My question is "What is standard % royalties in the coffee industry or beverage industry? The company wants to give us 1.5% 5 yr royalties and money upfront. We highly disagree and feel 10 - 15 yrs or the life time of the product. They want exclusivity for just a narrow select portion of our technology. So far my research reveals 3% 15yrs as typical? with other set min... This would be a global release. Any assistance would be appreciated...

Thanks

Originally Posted by cartman9061

Hi, I am a partner in a small technology company. Recently we recieved our global patents in a technology that is perfect for the beverage industry. We do have a licensing attorney handling our most recent negotiation. My question is "What is standard % royalties in the coffee industry or beverage industry? The company wants to give us 1.5% 5 yr royalties and money upfront. We highly disagree and feel 10 - 15 yrs or the life time of the product. They want exclusivity for just a narrow select portion of our technology. So far my research reveals 3% 15yrs as typical? with other set min... This would be a global release. Any assistance would be appreciated...

Thanks

Question. Who is taking the biggest risk in this deal?
IMO....take the deal but try to negotiate more up front money.

It depends on the investment on both sides and the strength of the patent or trademark. I would say 8% is expected by nationally recognized brands. And they are typically an agreement that does not end as long as the trademark or patent is being used.