1. Factors That Determine Licensing Value
Factor Impact and how fees are determined.
Level of Protection (IP Patents, Trade Secrets) Designs with strong legal protection are worth more.
Technical Superiority (speed, armor, capabilities) Cutting-edge designs can command premium licensing fees.
Development Costs If the R&D cost is high, expect higher licensing fees.
Demand (government, defense contractors) If multiple buyers want it, price could go up
Scope of License (exclusive vs non-exclusive) Exclusive licenses cost much more than non-exclusive.
Stage of Maturity (prototype vs production-ready) Production-ready designs command higher prices.
2. Typical License Pricing Models
Pricing and percentages listed are for demonstration purposes only.
Upfront Fee OnlyA flat payment for usage rights$250,000–$2M+ depending on how complete and valuable the design is
Upfront + Royalties Smaller upfront + % royalty per vessel sold$50,000–$500,000 upfront + 3%–8% royalty
Royalty Only No upfront; paid per unit sold 5%–10% per watercraft sale (but riskier for you)
Milestone-BasedPaid as certain milestones are hit (e.g., first boat built)Flexible structure, common in government deals
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