Our licensing and royalty experts perform complex contract compliance audits to determine adherence with the terms of license agreements and determine that the appropriate royalties are being accounted. We work with both licensees and licensors assisting in maintaining and increasing the value of their intellectual property (IP).
Businesses and individuals engaged in a license agreement may want to have an audit completed for a number of reasons, including, but not limited to:
- To obtain all the royalties to which they are entitled
- To induce further compliance by the licensee (a licensee is less likely to under-report if they know the licensor is going to check periodically)
- To determine if there is material noncompliance with an existing licensing Agreement
The complexity of the calculations and transactions within a license agreement often lead to errors in accounting. Our procedures are appropriately planned to identify reporting risk areas. We cross-reference the terms of license agreements with royalty accountings to determine royalties are being accounted in accordance to the terms of the license agreement. Our ability to determine areas of omission is as significant to our clients’ bottom line as the noncompliance and underpayments we uncover.
Since we began offering licensing and royalty services in the 1980s, our division has grown into one of the country’s leading licensing and royalty practices. Our royalty compliance services help our clients identify material underpayments and other violations of their licensing agreements that are often overlooked. We have become known for striking the appropriate and effective balance between audit accuracy and preserving the integrity of the licensee-licensor relationship. We seek to avoid the disruptions audits commonly trigger by emphasizing open communication, efficient investigation methods, and efficiencies through planning and appropriate staffing.
Our clients include market leaders in a range of industries, such as:
- Consumer Products
- Film and Television
- Food & Beverage
- Live Theater
We have acted on behalf of individuals who rely on their royalties to pay their daily bills to Fortune 100 companies that generate hundreds of millions of dollars in royalties extending their brand. Our procedures often uncover under-reportings and help our clients increase the value of their IP.
Our partners have authored chapters on licensing audits and accounting in industry publications. We have lectured, moderated panels, and lead roundtable discussions at events hosted by the International Licensing Industry Merchandisers Association (LIMA), Licensing Executive Society (LES), California Bar Association, US and International Customs and Border Protection Agencies, and at other industry-sponsored programs. We also provide continuing legal education (MCLE) to international, national, and local law firms on the subject of licensing.