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Financial Terms

Tiered Royalties

A royalty structure where the percentage increases as cumulative sales reach higher thresholds. For example: 8% on first $500M, 10% on $500M-$1B, 12% above $1B.

Related Terms

Royalty Rate

A percentage of net sales paid by the licensee to the licensor for the duration of the royalty term. Typically ranges from low single digits to mid-teens depending on deal stage and modality.

Escalating Royalties

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