The way a royalty is calculated depends on the license agreement relating to the intangible in question. Usually, it is calculated as a royalty percentage – a portion of the gross or net revenue gained through the exploitation of the licensor’s trademark. It can also be expressed as a fixed value. In this case, a sum will be decided on at the start of the agreement and will not change throughout the term of the licensing contract. There are benefits to both methods, with the selected royalty one depending on the organization in question and the preferences of the individual licensor.