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What determines the "Success Fee" once an agreement is made.

bfloyd's Avatar

It is stated, if an idea is selected for licensing, the partner will traditionally offer a licensing "success fee" which we split with you, 50/50.

The Edison Nation team will continue to work with the partner to see through your idea's development. If/when it hits the market you will receive

50% of the royalties earned. So, if they offered 7.5 % royalties on the product, so Edison Nation and the Inventor would split the royalty for the 

term of the royalty agreement?

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magurn's Avatar

Hi Bobby!

The success fee or upfront license fee varies deal by deal. The EN licensing team always works to secure as lucrative and fair of a deal as possible but it depends on the product, the amount of work required to bring the product to market, etc. 

With respect to the 50/50 split and 7.5% royalty rate, these are for two different commercialization paths.

All of our standard licensing deals result in a 50/50 split where all net receipts received by Edison Nation are split with the innovator. For ASOTV deals, there is no 50/50 split, there is a 7.5% royalty rate on net receipts. The reason the percentage is different in this category is because of the different work that is required to get an ASOTV product launched (web testing, prototyping, TV testing, etc.).

To read our innovator agreement, please click on "Legal" on the Edison Nation Help Page.

Best of luck!

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