Ever heard of Royalties for Inhouse Dezigner

Has anyone ever heard of an in-house or long-term contract designer negotiating royalties for the successful concepts they develop while there as well as getting paid hourly? Is this typical in the toy industry? THanks.

I have not heard of royalties programs, but I have been paid tiered bonuses based on production sales volumes achieved.

Normally you sign away your individual rights to intellectual property ownership as part of the many documents you sign for employment. While this does not mean could not receive royalty payments it is usually done to prevent you from asking for royalty payments. In the old days companies used to pay a designer or engineer one dollar for their when intellectual property was created. they also used to give you a nice plaque with the first page (made of metal) of the patent, but those days are mostly gone.

Yes, at an ODM in China, or when you have transitioned from a external situation where you were getting royalties and you move in house. In my humble opinion, all design work should receive royalties from production.

I know it was done when our dads did the business, but since has changed. The payment of direct royalties may have resulted in the digging of trenches between departements and even individual development engineers.
“This is my patent - I did that.”
Nowadays we try to motivate strong individuals into joint developement within teams.
Thus there is no direct payment of royalties, but a differentiatet motivational bonus, that is tied to the success in the market place.

I do see one flaw within that system though, the ones who are digging deep into future science are not rewarded accordingly, as those works do not come to fruition directly enough.


one of my friends negotiated a royalty agreement when the company he is working for wanted to produce some designs he developed on his own prior to working there, but that’s not exactly the same thing. As most have said typically you give up your individual rights to IP created during your time of employment when you sign the contract to work there.

Iamdesigner has a good deal going. I’d love more then a pat on the back if something sells gang busters.

Negotiation is a useful skill that can be learned.
I recommend the following books:
Getting Past No
The Power of a Positive No: Save The Deal Save The Relationship and Still Say No
You can negotiate your way into a better deal or a better design.