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Royalties?

blkrnbw's Avatar

Has anyone seen any royalties from anything submitted?I have seen a lot of horror stories. And I have a great idea, I'm just not ready to pull the trigger yet. Thoughts?

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rpontius's Avatarg8_badge

@Nathan:

I have not yet received a royalty check but I have received a "success fee"/"licensing fee" and I am anticipating receiving royalties.

Overall, I've had a great experience with EN throughout the process and as a result I have complete trust that if my product sells well I'll receive substantial royalties.

Darlene Batrowny
Elizabeth Crouch
Dan K
Derek B. Ford
Karen C Adams
Brett Carter
Vee R___
Michelle Sartori
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erg5tools's Avatar

11/17/2018

Hello Robert,

I am new here. I submitted my invention, that has 2 U.S. Patents, and I am on #4

of the dashboard. What does this mean if it goes to the bottom number "SUCCESS"?

I am confused about this site. You mention that you received a "Success Fee" but no Royalty. How much is the "Success Fee"?  My Goal is to find a Manufacturer who wants to be a strategic partner, licensing,  in exchange for Royalties.

Dell Henry

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rpontius's Avatarg8_badge

Dell - I can tell you that EN is exactly what you are looking for in terms of your goals (finding a strategic partner, licensing and royalties).

I believe the "success fee" varies in each case, depending on several factors, including whether a royalty advance is paid. My guess is that it ranges from $0 to a few thousand dollars.

I *will* get royalties - I just haven't YET because EN only pays royalties one time a year (around January for the preceding year).

Amongst the many things I love about EN, the royalty payment schedule is one of the very few things I'm not 100% happy with. Industry standard seems to be *quarterly* royalty payments, and I'm not sure why EN has an *annual* schedule.

Bert Touma
Vee R___
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kabuj's Avataree_badge

I concur with Robert. EN sounds ideal for your circumstance.

BTW - I also agree with the annual vs. quarterly royalty issue Robert mentioned. It is the only thing about the contract that makes me sometimes consider alternatives.

Best of luck to all.

Bert Touma
Vee R___
Robert Pontius
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vtac's Avatar

Agreed, EN needs to get upto date with quarterly royalties. Yearly just seems too long.

Bert Touma
Robert Pontius
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teddywd's Avatar

I have signed two license agreements with the same company and they pay me every quarter and I LOVE it!!

Happy Inventing everyone and do whats best for you!

Darlene Batrowny
Dan K
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dljinnovations's Avatargold

A year does seem like an excessive wait-time to receive a royalty payment, but I would love to personally experience that wait.  I hope the first royalty payment blows you out of the water Robert.

Perhaps it's a cash flow issue that has lead to EN's 1 year policy.

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kimmyk's Avatargold

I'm sure they want to wait until any returns or issues are covered, but I would think it shouldn't take that long!

I didn't realize that the royalties come from EN and not the licensing company.  Interesting...

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keeztan's Avatargold

Kim, the royalties are paid to EN by the licensing company. EN then distributes 50% of it to the inventor annually.

Kristina Poindexter
Robert Pontius
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rpontius's Avatarg8_badge

From point of sale to receipt of royalty to the inventor it may even be MORE than a year with this "annual" arrangement.

Let's say a unit of your product sells in Q3 2018, say August, 2018, but maybe it takes a while for the retailer to pay the wholesaler/manufacturer, say 45-60 days (or even 90), and the wholesaler a while to pay EN, maybe another 45-60 days. So perhaps that payment misses the year window and doesn't get paid to EN until after Dec. 31, 2018, say January 2, 2019. This could result in an inventor not getting paid until January 2020 for product that sold in August 2018!

On a quarterly royalty payment system in the example above, the inventor would still have to wait a while but would get paid in April 2019 instead of January 2020 for product that sold in August 2018.

Mark Bartlett
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sunto's Avatar

Make simple products sell online and wait for the caching on your phone .

This is another option . The royalty way seems long winded and

anticipating receiving royalties Robert that's a strange statement .

I hope your product sells well Robert . Is it on the market yet ? 

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rpontius's Avatarg8_badge

David: 2 versions of my product are now on the market and have been for almost a year. A CVS Health (CVS Pharmacy) version called the "CVS Nasal Aspirator" and a "branded" Ezy Dose Kids product called "Nose-Pals".

Darlene Batrowny
Derrick James
David .
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sunto's Avatar

Very good Robert thanks for sharing . Have you been to see the product being made that's the cool bit I like the most .  

Robert Pontius
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rpontius's Avatarg8_badge

David:

I haven't seen the product being made but was able to follow prototype development via EN and that was really cool.

Derrick James
Kristina Poindexter
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sunto's Avatar

That’s great EN share prototype details as it developed. I hope you learned something from your experience. We never stop learning as I am getting ready to launch a new product with a friend . 

Derrick James
Robert Pontius
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ravils's Avatarg8_badge

I agree with Robert about.

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