25% rule

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.
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.
Despite the fact that an element of savings is involved in universal life coverage, the IRS has taken the position that universal life coverage must be treated under the rules applicable to term coverage and is thus subject to the 25% rule.
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.
In the last year in particular," says one Big Five agency topper, "the 25% rule seems to be in effect everywhere.
This Directive abolishes the 25% rule for compound ingredients, thereby enshrining the principle that all ingredients should be labelled, regardless of the quantity contained in the finished food.
We're not going to exploit the 25% rule just to pump numbers," Ecken added.