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25% Rule

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25% rule
The guidelines that bonded debt over 25% of a municipality's annual budget is excessive.

Twenty-Five Percent Rule
1. A cautionary guideline for municipal bond investors stating that a municipality carries excessive debt if its long-term debt exceeds 25% of its annual budget. Investors are generally advised to be cautious about buying bonds from municipalities in violation of the 25% rule.

2. A rule stating that a person or company selling a product based on the intellectual property of another must pay a 25% royalty to the owner of the intellectual property. The 25% rule is applied to copyrights, trademarks, trade secrets, and other forms of intellectual property.


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Chapters cover IP and corporate value, licensing IP assets, use of the 25% rule in valuing IP, royalty rate guidelines, comparable licenses, royalty statistics, profit differentials and royalty rates, court-awarded royalty rates, comparisons of litigated and non-litigated licenses, and monitoring license agreements and financial compliance.
The section on licensing covers intellectual property exploitation strategies, economic contributions of intellectual property, global exploitation potential, use of the 25% rule in valuing intellectual property, licensing economics and royalty rights, licensing negotiations and agreements, internet asset licensing, and university technology transfer.
Case studies will be presented for valuing early-stage technologies using the CAV method as well as other valuation methods such as the cost method, replacement method, market method, income method, 25% rule, industry standard royalty rate method, the Monte Carlo method, and real options method.
 
 
 
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