What are royalties and how are they calculated?
The university generates revenue through dividends from the licensing program, referred to as royalties , that are paid to the university by U of T licensees for the right to use the approved marks. Revenue generated from royalties are intended for community and campus development projects directed through the Division of University Advancement. Royalty fees are applicable to all retail products and are presently set at 8% of the wholesale cost of the product. These fees are paid directly to the licensee who in turn pays the university in quarterly royalty payments. U of T divisions, recognized campus groups, on-campus organizations and authorized individuals purchasing U of T branded products for promotions, marketing, recognition, administration, awards and development are not subject to any royalty fees. A Royalty Report and royalty cheque are due within 30 days following the end of each quarter. A royalty report must be submitted regardless of whether any royalties are due or not.
