I've worked in accounting my entire career and would prepare quarterly royalty reports for Disney characters which my employer licensed and included in their products. The royalty rate was 14%. That was the 1990's. We also had other royalty agreements for Barney, Mutant Turtles and basically all popular characters back in the day. On these other licensing agreements the royalty rates were a little lower at 10% -12%. Our products which included licensed characters were sold at a premium price which more than offset the high royalty rates.
I also worked for a large book publisher as an intern in college in their royalty dept in the late 80's. I recall the royalty rate paid authors being low, around 1.25% - 3%.
So what I can say for sure is the more value that's added to a product and therefore higher gross profit margin, the higher the royalty rate.
In our case, a modem, etc is basically a commodity. Yes, broadband service adds value but there's a limit to that argument imo.
** My wild-ass guess is Chanbond is owed a 3% - 5% royalty on revenues attributable to products and services which incorporate their patents. On $100 billion per year in industry revenues, for 5 years, we are owed a lot of money. How does a total of $20 billion settlement sound? Crazy, huh ...
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