Intellectual Property (IP), in the form of patents, trademarks and copyright is often a company's greatest asset, essential for maintaining the value of its business. Only recently have companies begun to understand the importance of extracting the maximum value from their IP in terms of managing licensing and other contractual arrangements.
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 850 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.
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; and
You need a coherent, consistent approach to safeguarding and ensuring the accurate and timely receipt of licensing revenues.
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; and
Acting as expert witness.
Reaping the benefits
Our globally integrated network of licensing professionals brings together local knowledge, language and cultures to assist companies optimise their revenues, capitalise on and protect their intellectual property, and successfully manage risk.