Why are some royalties calculated on the Gross License Fee and others on the Net License Fee?
Consumer Licenses are paid on the Net License Fee, which is essentially the amount we receive from the sale after all deductions. This is because deductions such as distributor commissions and third party fulfillment fees on Consumer license items (like books, posters and merchandising) varies widely so calculating royalties based on what we actually receive provides a consistent basis for royalty calculations. The distributor commissions on Business to Business licenses, on the other hand, are well-established and fairly uniform making royalty calculations on the Gross License Fee much more feasible.
