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Re: deafelephant post# 20182

Sunday, 04/22/2012 1:37:50 PM

Sunday, April 22, 2012 1:37:50 PM

Post# of 80868
Is it normal for a company to get a 10% royalty on net income from the product? That seems like an easy to way do do some fun accounting and not have to pay any royalties. For instance, the 3rd party can pay its CEO a huge bonus and hey, what do you know, net income is $0 so they owe muscle pharm nothing, or they could depreciate something faster and again take net income to $0. To me, this is complete opposite of what they should be basing the royalty on, just like the complete opposite of the revenue based bonuses.