Royalty fees refer to the fees that the franchisor authorizes others to use the intellectual property rights or technology, brands and other business resources it owns in a certain field, and the fees are paid by the users. .

In layman’s terms, it means that the owner (franchisor) of a certain brand, technology, intellectual property, etc. authorizes the right to use its business resources to others (user), and the user pays the corresponding The licensing fee is the royalty fee.

Royalty fees are usually paid in the form of a certain proportion or a fixed amount. The payment method can be a one-time payment or an installment payment. The specific payment method and amount depend on the negotiation between the two parties. result. The payment period of royalties is generally within the period of use, that is, within the period stipulated in the franchise contract. The user needs to pay the fee in accordance with the agreed time and method, otherwise it may be regarded as a breach of contract.

Royalty is a typical licensing fee and is widely used in brand franchising, technology transfer, franchised production, etc. For franchisors, royalties can help them expand brand awareness, improve technology transfer efficiency, and increase the value of intellectual property; for users, royalties can help them quickly acquire resources such as brands and technologies, and improve their The competitiveness and operating efficiency of enterprises.

The royalties are stipulated as follows:

1. Payment method: The royalties can be paid according to a certain proportion or a fixed amount, or as stipulated in the franchise contract Make payment;

2. Calculation method: The calculation method of royalties can be negotiated and determined according to the needs of the licensor and the authorized party. Generally, it is based on the value of the intellectual property rights of the licensor, market demand, and the needs of the authorized party. Determined by factors such as the licensor's profitability;

3. Settlement cycle: The settlement cycle of the royalties can be determined according to the stipulations of the franchise contract, which is generally monthly or quarterly settlement;

4. Tax regulations: Royalties may be subject to relevant taxes and fees according to relevant national tax laws and regulations. The specific situation needs to be understood and judged according to local policies and relevant regulations.

To sum up, the specific regulations on royalties vary from industry to industry, country to country and region, and specific situations need to be understood and judged based on the franchise contract and relevant regulations. At the same time, the payment and settlement of royalties must strictly abide by the agreements and regulations of the concession contract to ensure legal compliance.

Legal basis:

Article 43 of the "Trademark Law of the People's Republic of China"

Trademark registrants may sign a trademark license contract , licensing others to use its registered trademarks. The licensor shall supervise the quality of the goods used by the licensee using its registered trademark. The licensee shall ensure the quality of the goods using the registered trademark.

If you use someone else's registered trademark with permission, you must indicate the name of the licensee and the place of origin of the goods on the goods using the registered trademark.

When permitting others to use its registered trademark, the licensor shall submit its trademark use license to the Trademark Office for record, and the Trademark Office shall announce it. The trademark use license shall not be used against bona fide third parties without registration.