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Royalty on trademark

Querist : Anonymous (Querist) 24 April 2023 This query is : Resolved 
To
The Fellow experts

Is there any standard rate for charging royalty for using trademark in India?
Here our company engaged another partnership Firm as Franchisee to use company's trademark on the specified products and pay royalty to our company for using trademark.
Regards
Abhijit
kavksatyanarayana (Expert) 24 April 2023
From the information source, royalty (on sales) may be as Royalty = Payment-to-licensor/Product-sales-price or Royalty = Licensor-profit/Product-sales-price or as Royalty = Licensor-profit/Enterprise-profit x Enterprise-profit/Product-sales-price.
or more formally as
Dr J C Vashista (Expert) 25 April 2023
There is no straight jacket formula or fixed rate of royalty for any product, it is mutually agreed rate / amount.
Querist : Anonymous (Querist) 25 April 2023
Thanks to Dr. Vashista and Sir Kavksatyanarayana for reply.
Regards
Abhijit


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