Royalty Rates and Guidelines
| License Agreement Type | Royalty Rate |
|---|---|
| Standard Rate | 2% – 5% |
| Incentivized Rate | 1% – 2% |
– Initial license fee and an ongoing royalty fee for every product shipped
– The royalty fee will be calculated as a percentage of the total unit sale price
– Royalty fee will apply for every unit shipped with the VirnetX techniques independent of the usage by customer
– Potential Incentives may include
• Good standing
• Annual Volume Commitment
• Prepaid Royalty