What percentage I should I ask for, as excutive product R&D and inventor cofounder?

What percentage I should I ask for, as excutive product R&D and inventor cofounder?

The percentage (I assume of royalties) depends on a variety of factors, including:

  1. Your invention – the more likely it is to be a big money spinner and the more likely it is to succeed then you will likely get more;
  2. How much your base salary is. If it is already large, then you are less likely to get big percentage royalties;
  3. How much you need your company to make your invention happen. Your company is likely to offer less if: you are already barred from taking your invention elsewhere by your employment agreement; your company has a dominant market position; and/or if your company has to spend large sums to implement the invention;
  4. How unusual your skills and experience are – if your skills are unusual, and it will be difficult to get someone else to fill your shoes then you have a stronger bargaining position;
  5. Your employer – some employers are generous and have inventor bonuses that can be a lump sum or royalty-related. Others do not see any value in providing anything to an employee other than their salary; and
  6. Some industries tend to be more generous than others.

In my career, I have seen royalty rates varying from 0% to 20%, generally in the following increments: 0, 2, 5, 10, 15 and 20%. It comes down to being realistic about your bargaining position and bargaining effectively.

Mark Warburton About the author

The Intellectual Property Guru. His determination to protect innovation stems from a family legacy in which his grandfather, a genius inventor, had his innovations stolen and patented by someone he trusted, which led to his grandfather dying a pauper on a park bench. Mark is an international award winning lawyer and patent attorney and 3-time published author. His prowess in the court room sees him winning cases that others thought were unwinnable. Mark’s passion for protecting intellectual property shines through in his pro-bono legal mentoring, proactive legal workshops and 1-2-1 work with clients.