LOS ANGELES, CA: February 18, 2018: Arthur Lipper, Chairman of British Far East Holdings Ltd., announced the filing of a U.S. patent application for a new contractual and structural approach to revenue royalties. These new approaches will be of interest to private companies, government organizations, university research groups and other revenue-generating entities that are able to make long-term minimum revenue projections and remit royalty payments in exchange for non-dilutive, non-debt capital.
The current patent application would require the payment, by maturity of the contract, of at least a minimum specified cumulative amount of royalties, based on the royalty rate and other conditions.
Such royalties would be sold to investors at an original issue discount to the cumulative total minimum royalty payments. Royalty payment terms could require either quarterly distribution of income, or quarterly reinvestment of income payments, resulting in a compounded increase in the value of the accrued royalties.
Lipper stated, “This new approach increases benefits for both the royalty investor and the royalty issuer. The original issue discount creates non-borrowing leverage for the investor and increases the attraction of the royalty for a revenue-generating entity seeking investment. We now have six company financing approaches which are either patent pending or patented. The two new approaches will soon have website calculators similar to those available for the original four approaches. Users of the website calculators are able to analyze the impact of modifying royalty terms as an aid to education, analysis and negotiation.”
The website calculators and a great deal more information are available at http://www.Royalties.Website. There is currently no fee for use of the system.
In a companion announcement, Lipper and British Far East Holdings stated that the new approaches will be sub-licensed to Pacific Royalties, LLC. Lipper went on to say, “We are in the business of assisting and advising royalty issuers and managers of royalty income funds and believe the new approaches will become important.”