
IP Valuation: Is the “25% Rule” Still Relevant?
POSTED BY Adam Bulakowski and Betsy Nesbitt AT 10:10 A.M. Jan 5, 2012 The 25% rule is a rule of thumb used to estimate royalty rates for intellectual property (IP) licensing transactions by approximating the risk/reward relationship between a licensee and licensor. A licensee only pays a portion of profits to the licensor, because of the additional costs and uncertainties …


