Hi, Lucy. Licensing proceeds usually involve a fee paid upfront to you through a signed licensing agreement between the parties. These agreements may also include milestone payments that come due as the technology or innovation is commercialized, and/or a royalty fee set at a percentage of the revenue or earnings from the eventual sale of products or services.
The amount of the fee upfront, milestone payments, and royalties are negotiated between the parties and generally, reflect the effort and stage of commercialization. In other words, the more developed your product or service is, the higher the proceeds tend to be. I hope that helps.
