How are the royalties determined? Are royalties paid per use or per mark?
Royalties assigned are based on a variety of factors, including industry standards for a specific category, overall volume of production, and distribution channels. Royalties are typically calculated and paid on overall net sales for the Licensed Product, not on a specific mark or use; however, this is dependant on the specifics of the situation. For council suppliers (Tier IV licensees), we standardize the royalty rate across the category to level the playing field in the council distribution channel.
