Negosh earns a success fee equal to 12% of the royalties earned on deals closed via the platform.
For the avoidance of doubt, royalties include any and all advance payments, minimum guarantee payments, standard royalty payments and all other amounts payable under the agreement which are considered royalties.
Whether the licensor or the licensee pays Negosh’s fee is pre-determined and shown on the IP listing before a deal is proposed.
If the deal renews after the initial term, the success fee drops to 8% of the royalties earned during the renewal term. Everything else works the same way.
On that same $10,000 royalty payment, Negosh’s success fee in a renewal term is $800 (8% x $10,000) instead of $1,200.
A deal closed via Negosh, the royalty rate on the deal is equal to 10%. The product launched in the market and generated $100,000 in net sales. Based on the 10% royalty rate, the licensee owes the licensor a $10,000 royalty payment ($100,000 x 10%). Negosh’s success fee is equal to $1,200 (12% x $10,000), which is 12% of total royalties paid.
The licensee pays $10,000 in royalties. Negosh invoices the licensor for $1,200. The licensor keeps $8,800 ($10,000 - $1,200). No additional cost is incurred by the licensee.
The licensee pays total licensing fees of $11,200 ($10,000 + $1,200). The licensor keeps the full $10,000 and Negosh is paid $1,200. No additional cost is incurred by the licensor.
Try the Negosh deal calculator. Negosh earns a success fee equal to 12% of the royalties earned on deals closed via the platform.
Licensor earns
$0
8.8% of the revenue.
Licensor pays Negosh
$0
12% of the royalties earned.
Licensee retains
$0
90% of the revenue.
Whether the licensor or the licensee pays Negosh’s fee is pre-determined and shown on the IP listing before a deal is proposed.
Negosh accommodates a variety of licensing agreement types across different product categories, territories, and distribution channels.
No. Creating an account, listing intellectual property, browsing the marketplace, proposing deals and negotiating in the deal room are all free. Negosh only earns a fee once a licensing deal generates royalties.
12% of the royalties paid to the licensor during the initial term of the licensing agreement, and 8% during any renewal or extension.
Any and all advance payments, minimum guarantee payments, standard royalty payments and all other amounts payable under the licensing agreement which are considered royalties.
The licensor is responsible by default. With Negosh's prior approval, a licensor can elect to have the licensee pay the fee directly to Negosh instead. When that happens, the listing is labeled on the site so licensees know before they propose a deal.
If the deal includes an advance, Negosh invoices against the advance as soon as it is paid, since advances count as royalties. That invoice is due on Net 30 terms like any other. From there, the paying party submits a royalty report to Negosh within 15 days after the end of each calendar quarter, covering all royalties paid or payable that quarter. Negosh then issues an invoice, payable within 30 days. Late balances accrue interest at 1.5% per month, and the paying party covers collection costs.
The fee still applies. Once two parties connect through the site, any licensing transaction between them within the next 12 months is treated as a Negosh transaction, no matter where or how it is negotiated, signed or performed.