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Susan Bellman

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PostSubject: annuity payments   Mon May 25, 2009 11:14 am

I saw this posted on another forum but I have no idea what it means. Can someone explain these terms to me please?

You will receive an annuity payment for successfully commercialized products of:

a) 7.5% of net revenues paid (if any); plus
b)50% of licensing revenues paid(if any); plus
c)40% of assignment revenues paid (if any); plus
d)4% of brand revenues paid to (if any)


Thanks

Susan
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Andrew Havlicek



Location : Cincinnati, OH

PostSubject: Annuity Payments   Fri Jun 05, 2009 11:04 am

Hello,

Here are short answers to your question:

First, an annuity payment is a payment to you (made monthly or sometimes only once per year) from a company who commercializes your product for a specified period of time (for example, 5 years), after which time they will no longer make annuity payments.

Further, here are clarifications of the other terms:

a. net revenues represent how much net money the company who commercializes your product receives in payment for the product, after paying sales commissions and discounts to retailers (usually based on volume)

b. licensing revenues represent how much money the company you currently have an agreement with receives,if it were to allow another company to sell the product for them, or in other words, give another company the "license" to sell your product. This happens quite often, and license agreements can be for thousands (or even millions) of dollars; license agreements are typically for short, specified periods of time, contingent on how well the new company does in selling the product

c. assignment revenues represent how much money the company you currently have an agreement with receives if it were to arrange to sell your patent to another company; this would relinquish your ownership rights, but could be extremely lucrative

d. I am honestly not sure what the company is referring to with the term "brand revenues." Suffice to say, they represent an amount of money the company receives related to your product.

Good luck!
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