Sale
Sale of the License “Transfer of a know-how”,
patents, engineering, experience, knowledges, technical consultations
Economic indicators:
Initial payment, for the Licensee (drawings, know-how, technical consultations):
10% of planned income of the Licensee
Royaltys, for the Licensor:
10% of income of the Licensee
Income of the Licensee:
С = М + (Taxes + Overhead + Royalty + Profit); USD
or
C = M + (T·D) = it approx 3.0·(М); USD
where
М - cost of materials for manufacture of installation; USD
Т - time for performance of the contract with the customer; days
D - cost of working time of the Licensee; USD/day
Annual income of Licensee:
C* = n·(C); USD/year
where,
n - number of the sold installations, units/year
Initial payment, e.g:
IP = 0.10 (С*); USD
Royaltys, e.g:
R = 0.10 (n*· С); USD/quarter
n* - number of the sold installations, units/quarter
Cost of water for the customer:
U = (E/Q) + [С/(Q·L)]; USD/m3
where,
E - general expenses of the customer for water treatment; USD/year
Q - output from installation; m3/year
С - contract price (between the Licensee and the Customer), USD
L - amortization of installation (installation life time) , 10 to 30 years
E/Q = approx 0.010 USD/m3 (for non-chemical water treatment)
Ua - the known to the customer a competing (alternative) variant of water treating; USD/m3
