Royalty Compliance Audit

Inaccuracies caused by infringement, misinterpretation of the license agreement, under-reporting errors and/or ineffective internal controls, can reduce royalty payments otherwise due to the royalty recipient. Royalty compliance engagements are an effective, contractual and prudent business practice to ensure that the royalty reports received by licensors or their agents are timely, complete and accurate.

For more than two decades, Miller Kaplan has concentrated on providing royalty compliance services to our clients, helping them recover millions in underpayments along the way. We pride ourselves in our communication throughout the engagement. We stay in constant contact with our clients, communicating procedural updates, initial findings, and areas of concern. In addition, we may also recommend internal controls and monitoring procedures to strengthen internal controls over the licensee’s reporting. Typically, these engagements disclose underpayments which far outweigh the cost of our performing these procedures and in many cases our fees are fully recovered from the licensee in accordance with the license agreement. In many instances the ‘right to audit’ provision in the licensing agreement has enabled the Licensor or Agent to recover from 200% to more than 1200% of the fees charged by us.

We perform our services worldwide and do so, on localized bases in countries all over the world. Our professionals have familiarity with most industries utilizing licensing and royalty based compensation, including Apparel, Art, Automotive, Music, Television, Film, Cosmetics, Consumer Products, Sports, Food & Beverage, and Technology.

To discuss your situation with our licensing and royalty professionals, please contact us online or call us at (818)769-2010.