Setting royalty rates in brand licensing agreements.

This paper addresses the most relevant aspects related to the management of brand licensing agreements, with a particular focus on royalties - the economic fee granted to the licensor (or brand owner). The first section of the paper in particular illustrates the different methodologies - used by manager in real word situations - to quantify the value of brand licensing agreements and set royalty rates whereas the second part introduces a new methodology (empirically tested) able to address the limits of the traditional approach. [ABSTRACT FROM AUTHOR]