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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked
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To: gerard mangiardi who wrote (404)11/17/1998 12:29:00 PM
From: BulbaMan  Read Replies (1) of 90042
 
KIDE doesn't reveal this info. But in their 10K they say the following:
"The typical licensing arrangement provides for the payment of royalties based upon a percentage of the manufacturer's aggregate net sales, at wholesale, of the products in question. LCI usually retains between 15% and 50% of the owner's licensing royalties, which generally range from 4% to 12% of net wholesale sales."
LCI is KIDE's licensing subsidiary. And my guess is, given Pokemon's popularity, the percentages will be at the higher end of the ranges.
So, for example, if Pokemon products do $1 billion at wholesale in 1999 (they sold $4 billion at retail in Japan in about 18 months), with Nintendo royalties at 9% and KIDE royalties at 35%, KIDE royalty revenues would be about $31.5 million.
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