Protect your intellectual property and brand reputation with a license and royalty audit.
When engaged in a license or royalty agreement, whether you’re the licensor or licensee, it is important that your revenue calculations are regularly examined for completeness and accuracy. A license and royalty audit is intended to ensure royalty calculations are consistent with your agreements and licensors are able to maximize license revenues.
The use of an independent third-party royalty audit firm can be very beneficial to an organization. Oftentimes the licensee may be reluctant to share proprietary information with the licensor; therefore, utilizing an independent third-party such as Eide Bailly to perform the audit may elicit more timely and cooperative assistance from the auditee.
In addition, 75-85% of licensees have errors in their royalty reporting, and 89% of license agreements are underpaid. By establishing a compliance program, licensees are more likely to maintain compliance and less likely to make payment errors.
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“At GE, we are still learning how to engineer the components for a successful and more sophisticated approach to licensing, but our track record so far indicates that we are off to a good start.”
Pat Patnode, CEO, GE Licensing
How Eide Bailly Can Help with License and Royalty Compliance
Eide Bailly has curated a team of specialists to assist you with your licensing and royalty audits. As a trusted royalty audit firm, our team is comprised of risk, forensic and technology specialists.
Our professionals will work to develop a thorough knowledge of your royalty audit agreement, history of the licensing relationship and licensor’s interpretations. We will gain an understanding of licensees’ positions, disagreements and historic performance under the license. We’ll also become familiar with licensees’ accounting methods, processes, systems and documentation.
Specific ways Eide Bailly can help with your licensing compliance program include: