twenty-five percent rule

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Twenty-Five Percent Rule

1. A cautionary guideline for municipal bond investors stating that a municipality carries excessive debt if its long-term debt exceeds 25% of its annual budget. Investors are generally advised to be cautious about buying bonds from municipalities in violation of the 25% rule.

2. A rule stating that a person or company selling a product based on the intellectual property of another must pay a 25% royalty to the owner of the intellectual property. The 25% rule is applied to copyrights, trademarks, trade secrets, and other forms of intellectual property.
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twenty-five percent rule

A guideline for municipal bond buyers that indicates that if a municipality's total long-term debt exceeds 25% of its annual budget, the debt is excessive.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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It is on the basis of that 25 percent rule that all our present officials are in place.
Previously, senior personnel had the power to determine how "excessive" a tattoo might be in size and if it violated the 25 percent rule, which said no tattoos could cover 25 percent or more of an exposed body part that could be viewed while in uniform, other than training gear.
Barry said these lagging effects include scrutiny over use of the "entire market value rule", and a related tendency to apportion damages to smallest saleable patent-practicing unit; disallowance "25 percent rule" in determining damages, along with greater rigor demanded in damages analyses; low royalty rates for standards-essential patents and; narrower definition of what constitutes an "comparable" patent license against which to benchmark the subject patent.
Another discrimination issue involves what is commonly called the "25 percent rule." This stipulation requires that no more than 25 percent of the pre-tax benefit may go to primary employees, such as the company owner and high-paid, managerial employees.