Business Standard?

[mpac1365]

What is the name of your state? New Jersey.

I have an invention that has attracted some investors.
Are there any 'business standards' as far as Licensing my product to them? I.E. Is there a certain percentage standard in business I would get per unit, if they license it? Or?

And, if they invest and foot 95% of the costs, how much is a good percentage of the business to offer them, standard, if any?

AND, if they decide to purchase my invention, how do I decide on a selling price when the profits they stand to make are about $30 million annually in less than 5 years? Do I fix a price based on projected earnings? I haven't invested all that much, but, the potential is awesome.

Thanks.

 

[divgradcurl]

What is the name of your state? New Jersey.

I have an invention that has attracted some investors.
Are there any 'business standards' as far as Licensing my product to them? I.E. Is there a certain percentage standard in business I would get per unit, if they license it? Or?

And, if they invest and foot 95% of the costs, how much is a good percentage of the business to offer them, standard, if any?

AND, if they decide to purchase my invention, how do I decide on a selling price when the profits they stand to make are about $30 million annually in less than 5 years? Do I fix a price based on projected earnings? I haven't invested all that much, but, the potential is awesome.

Thanks.

There are no "standards." What kind of license are you granting -- exclusive? Nonexclusive? Worldwide? Only U.S.? Do they have further rights to sublicense? All of these will impact the amount you get for the license. Your best bet is to sit down with either a lawyer or an accountant (or both) and try to figure out a cost that is fair and acceptable to both sides.

 

[jdkern]

There are valuation experts who can help you determine how much you should be asking for. They should have access to histories in your industry that will give them an indication of how much similar inventions have been licensed for in the past.

The "Big 4" accounting firms, and other valuation firms, like American Appraisal are who I have in mind.

I hope this helps.

IANAL

 

[dmeriksen]

probably you are talking about ISO standards