What are the settlement methods for patent transaction fees?

there are generally three ways to settle patent transaction fees: one-time settlement, royalty, and the combination of fixed and royalty.

"one-time settlement" means that after signing the patent transaction transfer contract, the licensee (transferee) pays the transfer fee to the licensor (patentee) at one time according to the price stipulated in the contract.

"commission" can be divided into two types: fixed commission and sliding commission. "Fixed commission" refers to artificially fixing the production quantity or net sales of the contract products at a certain number (no matter whether the actual production quantity or net sales is more or less), and making commission according to this number every year within the commission limit; "Sliding commission" refers to the commission according to the actual number of products produced each year or the actual net sales.

the "fixed" part of the "combination of fixed and royalty" is called the initial payment, also called the "entry fee", which will be paid immediately after the contract takes effect; The "royalty" part shall be paid within the period agreed in the contract after the project is put into production, and the method is the same as "royalty".

in order to protect the interests of both parties and avoid disputes in the future, the settlement method and time limit of the fees should be clearly stated in the contract when the patent is traded.