Royalty & License Compliance Examinations

Many "large brand", patent owners and other licensor companies are adopting the active management of their licensing arrangements as best practice. Despite this, a significant proportion of licensors do not exercise their contractual right to audit. Our experience shows that implementing a programme of routine licensee royalty examinations increases royalty revenue streams, eliminates contract interpretation issues and enhances the licensing relationships.

We can assist in implementing an effective programme of licensee reviews as well as conduct individual licensee royalty examinations to determine whether they are reporting and paying royalties accurately under the terms of the agreements. Our experience in this area spans a range of industries from Entertainment & Media, Music, Gaming, Technology and Pharmaceutical sectors.

In the technology sector there are unique considerations with respect to the IP how it is used, for example embedded in silicone chips, and the necessary steps to work with licensees to fully understand volume of relevant activity.  In many instances it is necessary to engage with not only finance but also, R&D and engineers to obtain required information to properly monitor usage of IP in licensee’s products.