To be effective in advocating change one must be aware of different views.

I keep an enlarged image of the above in my work area to remind me that, in time the view of people can be changed, if a view is fairly presented.

Revenue royalties (royalties) are a better means of financing growth by business owners than the sale of debt or equity. Selling equity dilutes ownership and debt must be repaid. Royalties are not securities and do not vote. Therefore, the natural conflict between investors and business owners and managers are avoided. Royalty payments are royalty issuer tax deductible and royalties can be redeemable by the issuer.

Royalties are better for investors in companies for which a growth of revenues is projected and achieved, as the agreed percent of revenues can be paid daily and is irrespective of declared profitability. Royalty payments are tax free until a full recapture of invested amount is achieved and become ordinary income thereafter. Royalties, as other contractual assets, are fully transferable.

We are available to professionally advise both royalty investors and issuers. We also recommend that both royalty investors and royalty issuers consult with their tax and legal advisors.

Royalties are simply a better way of participating in the growth and ownership of privately-owned companies.

 

Arthur Lipper, Chairman                          arthurlipper@gmail.com
British Far East Holdings Ltd.                 858 793 7100 PST