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Royalties

tangatanga's Avatargold

I'm learning more and more about EN. Question that I haven't been able to find is what happens after a licensing deal is made? Is there research on how much a product will cost? Once it goes to the shelves how often do you receive payments? Annually?

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rpontius's Avatarg8_badge

Tanga:

The process post-license varies based on the company the idea is licensed to and other factors. That said, yes, I'm guessing all companies do a thorough analysis to determine the cost of manufacturing a product and the resulting wholesale and retail price.

Once a product hits the shelves EN pays royalties *annually*, though in my opinion they should change to the more standard *quarterly* payment schedule or risk dis-incentivizing inventors. 

More (and official) answers here (especially Schedule A):

https://www.edisonnation.com/documents/innovator-a...

Derrick James
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