Meet the Unexpected Millionaires Earning Royalties from Listerine

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00:00Meet the unexpected millionaires-earning royalties from Listerine.

00:04Katherine Schweitzer's Baird Foundation earns $120,000 annually from a 0.5% Listerine royalty share,

00:14providing a unique and steady income stream distinct from typical philanthropy,

00:18funding like grants, donations, or investments.

00:22Quarterly payments from a 140-year-old contract by Johnson & Johnson

00:27provide invaluable financial security for Schweitzer's non-profit,

00:32despite no direct connection to Listerine or its manufacturing company.

00:36Listerine was created by Civil War doctor J.J. Lawrence,

00:41licensed in 1881 by Jordan Wheat Lambert.

00:44The contract provided $6 per gross to Lawrence's heirs.

00:49Lambert's son later made Listerine a popular household name.

00:53Vera, J.J. Lawrence's granddaughter,

00:56initially inherited the royalties.

00:59Over time, family sales fragmented the trust,

01:02leading to ownership by institutions like Wellesley College

01:06and various non-profits, universities, individuals, and churches.

01:10In the 20th century, Listerine royalties were privately traded.

01:15Recently, royalty exchange auctions fetched $561,000 in 2020

01:22and $1.795 million in 2022, highlighting their stability.

01:28The Listerine royalty trust's real value declined due to inflation,

01:33yet beneficiaries like Schweitzer see it as a valuable resource

01:37for impactful community reinvestment despite historical erosion.

01:41In 1959, Warner-Lambert tried ending the Listerine royalty contract,

01:48but courts upheld its validity,

01:50highlighting perpetual agreement's unforeseen consequences.

01:53The Listerine royalty trust exemplifies enduring legal agreements,

01:58generating millions from a handwritten contract.

02:01Its unique legacy enables meaningful work,

02:05benefiting diverse holders for over a century.

02:07The Listerine royalty trust's real value,