I always advise my inventor clients to negotiate patent royalties in their native
currency. For example, if you are in the UK, negotiate patent royalties in British
Pounds; if you are in the USA, negotiate royalties in US Dollars.
Although the exchange rate “over the time of your license” will inevitably change,
both for and against you - setting your invention royalties in your native currency
will at least eliminate one of the uncertainties of future royalty projections.
If the rate is not in your favour at deal sign time, try to negotiate a rate equal
to the average of, say the last 3 years.
For added flexibility, also consider opening a bank account in the denomination of
the licensee’s currency. In this case, make sure your royalty agreement specifies
that you can choose which bank account your patent royalties are paid into when they
Above all, do be sure you know how to negotiate TopInvention Royalties
by signing-up for your FREE eReport on the right.
Inventor Conundrum #4
“How can inventors guard against patent royalty currency fluctuations on international
license deals?” How can you guard against royalty currency fluctuations?”
How to Evaluate, Calculate, & Negotiate Top Patent Royalties
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