The licensee generally pays a fixed sum when signing a license agreement and then royalties over the life of the contract.

Question

Quizplus · Accepted Answer

This statement is generally true. While some license agreements may have different payment structures, it is common for licensees to pay an initial fixed sum, known as an upfront fee, when signing a license agreement and then ongoing royalties based on sales or usage over the life of the contract.

The Licensee Generally Pays a Fixed Sum When Signing a License