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royalty can be awarded based on the patent statute and is commonly used in license negotiations running royalties are royalties based on sales of an infringing product a lump sum or paid up royalty is a payment that is a single payment but frequently based on a running royalty calculation before getting into royalty rate specifics its a good idea to step back and get a sense of how overall royalty calculations are done in this video Ill point out typical items that are in that big picture and then go through a sample calculation there are two important points to understand at the outset about royalties apart from the factors that might go into setting any particular royalty rate first royalties are based on the manufacturer sales and/or use in a particular country where a patent exists second royalties are based on the portion of the product that actually embodies the invention royalties can only be obtained in countries where a patent exists and an infringing act occurs royalty rate
