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    0 Replies Latest reply on Dec 3, 2008 7:44 PM by wheelboy

    What's a good royalty agreement for inventor of med. device?

    wheelboy Newbie
      Greetings. I have a vexing question that I hope some of you can answer. I'm an MD who invented a medical device earlier this year and started a company to make and sell it. The company is now an S-corp and run by an executive team. I have stepped out of day-to-day operations and am a majority shareholder in the company. There are several SKUs being developed by the company at this point, my widget being but one of about 5 or 6.

      I need to arrange a royalty agreement with this company for a percentage of sales of the product I invented. I've heard a variety of numbers tossed around -- 5% of net profit, 50% of gross profit -- and I need to know what is a standard, reasonable percentage to demand as a royalty on sales of the widget. Any feedback on this would be greatly appreciated.