twenty-five percent rule

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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.

twenty-five percent rule

A guideline for municipal bond buyers that indicates that if a municipality's total long-term debt exceeds 25% of its annual budget, the debt is excessive.
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For years, many trial courts have relied on the 25 percent rule of thumb, which calls for a 25 percent royalty rate in calculating patent infringement damages in cases such as Uniloc v.
The 25 percent rule relied on the supposition that the licensee would be willing to give up 25 percent of profits for the right to use a patented technology or device, keeping 75 percent.
Although the Federal Circuit sided with Uniloc in reversing the district court's JMOL on the issue of infringement, it agreed with Microsoft's assessment of the damages as excessive and, in addition to throwing out the 25 percent rule of thumb used to calculate the damages, it excluded expert testimony that "checked" the suggested damages using the "entire market value rule.
He arrived at this number by applying the 25 percent rule to an internal Microsoft document that valued the product keys at a minimum of $10 each.
They won't withstand scrutiny at the appellate court, just like the 25 percent rule didn't withstand scrutiny.
According to the 25 percent rule, fewer than 25 percent of key employees (owners, upper-level management, etc.