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sale

Sale of the License “Transfer of a know-how”,
patents, engineering, experience, knowledges, technical consultations

Economic indicators:

Initial payment, for the Licensor (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:
= + (Taxes + Overhead + Royalty + Profit); USD
or
C = M + (T·D) = it approx 3.0·(); USD
where
- cost of materials for manufacture of installation; USD
- 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 (*); USD

Royaltys, e.g:
R = 0.10 (n*· ); USD/quarter
n* - number of the sold installations, units/quarter

Cost of water for the customer:
U = (E/Q) + [/(Q·L)]; USD/m3         
U = 0.010 + 0.30(M/Q); USD/m3        

where,
E - general expenses of the customer for water treatment; USD/year
Q - output of installation; m3/year
- contract price (between the Lcensee and the Customer), USD
L - amortization of installation , e.g 10 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
 

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