Royalties on Inventions

The percentage of royalties paid to inventors for their inventions can vary from as low as 1-2 percent to as high as 15-20 percent depending on several factors that include the size of the industry, market and manufacturer. An average royalty though is around 5 percent.

Often, a large and well known manufacturer might offer a smaller percentage than a smaller manufacturer. But if that larger manufacturer can bring greater brand recognition, distribution and customers to the mix, the smaller percentage could end up equaling a larger amount of money.