(P) Financial Factors: Analysis of Royalty Rate Based on Market Comparisons
Financial Factors:
Analysis of Royalty Rates Based on Market Comparisons
Licensing Journal, February 2001
by Mike Mard
Last month’s column began a review of the AU Pro Sports Camps, Inc. v. Walt Disney Company decision in which a six-person jury in Orlando, Florida, found the Walt Disney Company (WDC) guilty of theft of trade secrets, breaking an implied contract, and breaching a confidential relationship. As a result, AllPro Sports Camps, Inc., was awarded $240 million in damages. The review presented the facts of the case and examined the derivation of the royalty based on the profitability of WDC’s theme parks. This months column discusses the determination of the royalty rate based on market comparisons.
Key Words: royalty rate market disney allpro
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