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Know-How Fees

  • 1.  Know-How Fees

    SENIOR MEMBER
    Posted 02-22-2020 04:27
    I am a former executive of a thermal process equipment company who after retirement is now consulting in the same industry.
    Besides hourly fees, some of my customers are willing to pay Know-How fees but I am lacking experience in respect to a calculation basis for such fees.
    I wonder whether there is someone at AIChE who can help me with this or direct me to someone who can.
    I am looking forward to hearing from you.

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    Artur Zimmer
    Oxford MD
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  • 2.  RE: Know-How Fees

    SENIOR MEMBER
    Posted 02-25-2020 00:11
    Hello Art,
    The consulting fees (hourly) fees vary but can range from 100-200 US $.
    Know-how fees also vary depending upon the technology supplied. For example, for a complex crystallization process Know-how fees may be 70-80 % of the capex whereas for other simple technologies they can be much less ~ 30 %.
    Hope this rather vague answer gives you some indication.

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    Vishwas Pangarkar PhD
    Retired Professor of Chemical Engineering, University of Mumbai, India.
    Currently: Independent Chemical Engineering Academic/Professional.
    Nasik-422013, India.
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  • 3.  RE: Know-How Fees

    SENIOR MEMBER
    Posted 02-25-2020 10:27

    Artur,

    When you are referring to know-how fees, do you mean license or royalty fee?  The value of license or royal fee can vary widely and  is highly dependent on factors such as industry e.g. chemical, refining, pharma, etc.; novelty of technology; patent position; availability of alternative solutions.

     

    Regards, Martin

    Martin J. Van Sickels

    MVS Consulting LLC – Technology Management for the Process and E&C Industries

    Ph:  281-370-0374,     Cell Ph:  713-213-5467

    E-mail:  martinvs@sbcglobal.net or martinvs@MVSConsultingLLC.com ,  Web:  www.MVSConsultingLLC.com