Transaction Services > Royalty Rates

Caliber Advisors, Inc., specializes in the valuation of high-tech companies and their intellectual properties and intangible assets. Through our experience, we have compiled a proprietary database of arms-length royalty rates that we use in conjunction with our proprietary royalty rate predictor model, CAI Predictor™.

Royalty rates are affected by the attributes of the licensed asset, including potential profit margins, economic life, and market size and power. CAI Predictor™ examines market comparables and public and private market statistics, then uses several different algorithms to determine profit-margin potential and market-size measurements. The model then evaluates economic life through a combination of industry review and Weibull curve analysis, and market power through a variety of methods that include measures based on the Herfindahl-Hirschman Index (HHI).

These models and analyses combine to determine royalty rates that provide fair and sustainable returns to both the licensee and licensor.