Valuation & Scoring
What is the average royalty rate for licensed patents?
The short answer
Across the Licensing Executives Society's 2021 high-tech survey, the average royalty rate was 4.82% of sales and the median 4.75%; combining four surveys since 2011, the average is 5.66% with a 5% median. Two-thirds of all royalty rates land at 5% or less, and 90% at 10% or less.
The full picture
Rates vary by industry: RoyaltySource's 30-year benchmark data shows medians from 4.3% in semiconductors to 6.1% in medical/health and telecom, with pharma and software outliers running higher when the invention carries the product. The right anchor isn't the average — it's deals in your specific industry, at your invention's stage, with your evidence.
One warning from practitioners: the rate matters less than the base it applies to. Three percent of a billion-dollar product beats ten percent of a niche one, and minimum royalties protect you when volumes disappoint. What your patent could realistically command — rate, base, and structure together — is exactly the kind of analysis our score includes.
Where does your patent stand?
The Beyond the Patent Commercialization Score answers that — a professional, factor-by-factor read on your patent's licensing, sale, build, and partner potential.
Related questions
General information for patent owners — not legal advice. Read the disclaimer.