Royalty Rate

The royalty rate is set at a level that will adequately reflect the value added to the goods and services on which University Marks are displayed. In developing the rate, consideration is given to the cost to the consumer, the impact on the vendor community, and the rates in place at institutions of similar size and stature. The licensing sub-committee, with representatives from all CU campuses, will collectively determine the royalty rate for the use of the University's Marks. The current University royalty rate is on the wholesale cost of goods for those items purchased for resale and 0% for those items purchased for internal use (subject to the “internal exceptions" below).

Royalty Exemptions

In determining exemptions from royalty payment, consideration is given to the purpose of the licensing program and the community it serves. Given these criteria, the University should not be required to pay itself for purchases of services or products it makes for its own use to fulfill the educational mission of the University, which includes community outreach. However, the University should also avoid unfair competition with other retailers and service providers and should, therefore, not exempt itself from paying royalties on the purchase of goods that are to be used for resale or services provided to faculty, staff, and students as an additional benefit unrelated to the educational mission of the University.

Internal Exceptions

Items purchased for internal use are generally royalty exempt, but some exceptions do apply. They are as follows:

1. If the items are purchased to be given away at an event and there is a cost for admission to the event.
2. If a third party’s mark (i.e. sponsor) appears on the item.
3. If the same or very similar item can be purchased from the campus bookstore, as these items are deemed to be in direct competition with the bookstore

Other

• Licensed vendors must always be used regardless if the items carry royalties, or are to be resold or used internally.
• Giveaways at major events need to be approved prior to the event. If approval is not obtained, the items may not be given away.