A patent attorney helps a startup license a patent. The deal includes a $50,000 upfront fee and 8% royalties on net sales. If the product generates $1.2 million in first-year sales and net sales are 60% of gross, how much total does the patent holder earn in the first year?

Tue, 05 May 2026 17:30:12 +0000

How a Patent Attorney Helps Startups License Patents: A Financial Breakdown of Royalties and Upfront Fees When startups develop innovative technologies, protecting intellectual property through patents is crucial. But beyond protection, licensing those patents presents a powerful revenue opportunity—especially with the expert guidance of a patent attorney. In one illustrative case, a patent holder partnered with a fast-growing startup to license a key patent, securing not just legal protection but a structured, profitable arrangement. ### The Licensing Structure Explained In this deal, the patent holder received two key components: