Financial

25% rule

25% rule

The guidelines that bonded debt over 25% of a municipality's annual budget is excessive.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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References in periodicals archive
In Paice, for instance, the district court, instructed by the Federal Circuit not to use the jury's $25-per-unit damages award, fell back on the most reviled patent damages theory in history, (49) the so-called 25% rule of thumb.
(9) During its lifetime, as acknowledged in Judge Linn's opinion, some version of the 25% Rule has been used in literally hundreds of cases without recriminations by the parties.
The 25% rule cannot be scrapped without Congress giving its consent.
The 25% rule allows for the normal price fluctuation that occurs in most issues.
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.
The new rules abolish the "25% rule", which currently means that it is not obligatory to label components of compound ingredients that make up less than 25% of the final food product.
When the new allergen labelling directive comes into force, the '25% rule' referred to above is almost certain to disappear.
However, this list is not mandatory when the compound ingredient represents less than 25% of the finished product (the so-called "25% rule"), except in respect of additives.
"In the last year in particular," says one Big Five agency topper, "the 25% rule seems to be in effect everywhere."
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