1, the market value of the product or technology. The greater the market potential and commercial value of the product or technology itself, the greater the value space of the license fee. This provides an estimation basis for the price ceiling of both parties.
2. Development cost of products or technologies. The cost of developing a product or technology also reflects its economic value, which provides a reference for the lower limit of license fee. The license fee will not be lower than a certain proportion of the product development cost.
3. Industry standards and precedents. You can refer to the licensing cases of similar products or technologies in the same industry, and the licensing fee level provides the industry benchmark for the upper and lower price limits of the current case. Also consider the price difference caused by product differences.
4. The bargaining power of both parties. The market position and bargaining power of suppliers and recipients themselves will also affect the upper and lower limits of prices. The stronger the bargaining power, the wider the price range, and the more benefits will be gained.
5. Constraints of other clauses. In addition to the price, other terms of the license contract, such as patent protection period, sales area restrictions, production scale restrictions, etc. , it will also restrict the price and guide the price to float in a certain direction.