Metering

A term used in licensing to describe methods for trying to work out the extent of the licensee’s use of the licensed technology, by, for example, looking at the number of unique components purchased. Running royalties should usually be tied to something (or multiple things) that can be metered easily and reliably and usually the license should include audit rights. Care should also be take to seek a methods of metering that can catch so called backdoor sales.

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