Royalty & licensing management

Our globally integrated network of licensing professionals can help companies optimise their revenues, capitalise on and protect their intellectual property, and successfully manage risk.

In 90% of the royalty examinations we undertake for our clients, we uncover underreported revenues due to clerical errors, accounting mistakes or contract misunderstandings. Almost invariably there are financial recoveries, sometimes very substantial figures. Therefore, our royalty examinations tend to be self-financing exercises as well as best business practice.

Over the life of a long-term licensing agreement, the revenue leakage that results can amount to hundreds of thousands or, in some cases, millions in lost income for licensors.

Our expertise is highly valued in many industries, including software / technology, entertainment, media and publishing, luxury goods, biotech / pharmaceuticals, and telecommunications. We have completed over 2,500 engagements over the past five years.

While we work primarily with licensors, we also assist licensees by reviewing royalty agreements, ensuring compliance and, if necessary, resolving disputes.

How we can support you:

Potential issues

  • Understanding and auditing your licensing income is difficult
  • You have complex licensing agreements over numerous territories
  • Your royalty income varies dramatically from year to year
  • You want to make sure that your royalty income is correct and to audit your licensing contracts
  • You need a coherent, consistent approach to safeguarding and ensuring the accurate and timely receipt of licensing revenues.
  • Your income from the sale of products in electronic formats or via new Distributors and Distribution models is increasing rapidly
  • You have changing sales channels and complex incentive schemes leading to rising payments to Distributors

How we can support you

  • An assessment of risks to the licence portfolio
  • The development of strategies to manage, monitor and control those portfolios
  • The establishment of compliance programmes for licensing, distribution, pricing and other contractual agreements
  • Forensic-based royalty examinations
  • Commercial reviews of royalty and financial provisions in agreements
  • Advice on royalty rates and licensing fees
  • Acting as expert witness.

Track record of success

With more than 2,500 engagements completed over the past five years, our experienced practitioners offer tremendous expertise in every facet of licensing management.

The following is a list of some of the many client success stories:

  • Royalty examinations of 16 Licensees in Japan, Spain, Germany and France on behalf of a luxury brand licensor. Underreported royalties were identified and recovered in excess of £3 million
  • Royalty examinations of various Licensees in Japan, US and Spain for a well-known semiconductor licensor. One assignment alone discovered £10 million in underreported revenue
  • Royalty examination of a US Licensee on behalf of a well-known character brand. The assignment identified and collected over two hundred percent (200%) in additional underreported royalties
  • Assisted an internationally recognised magazine publisher licensor in performing royalty investigations of its Licensees. This work was conducted to ensure the licences were being administered correctly. Nevertheless the work also uncovered misreporting due to licence interpretation issues.
  • Royalty examinations of major online Digital distributors on behalf of Licensors of music, film and television.  These assignments identified mis-reporting as well as confirming to the Licensor how digital distributors reflect ever changing arrangement in their reporting.
  • A programme of examining incentive payments paid to distributors on behalf of a major consumer and business electronics provider highlighted significant over-claims together with many areas of non-compliance with the agreement terns.