Being confident that your business receives all royalty payments from parties who license your intellectual property (IP) is fundamental to ongoing success. It’s also important to protect your IP by verifying that licensees are used only as specified in your contract.

While you receive regular royalty reports from licensees that show the amount due, you can’t see if the data these reports are based on is correct. These reports also provide no visibility into whether the licensee is using your IP outside the parameters of your contract with them, or worse, sharing it with unauthorized parties.

Put your mind at ease with periodic royalty audits performed by experienced certified accounting professionals who understand your business and can provide the insight you need to confirm that payments are correct, and your IP is protected.

Get the Answers You Need

Your business depends on accurate, complete royalty payments, whether you license traditional or digital content, software, medical and other technology, your brand, or another type of IP.

Without a royalty audit, you may not know you have issues with your payment or the use of the IP. A third-party auditor takes a deep dive into licensee systems and data, and can uncover a host of issues that affect your revenue, including:

• Unreported sales
• Incorrect base pricing
• Inappropriate bundling allocations
• Incorrect chargeback allocation
• Sales outside of license period and territory
• Excess inventory shrinkage
• Incorrect foreign exchange rates
• Improper revenue recognition
• Incomplete product reporting

Conducting periodic royalty audits can help you identify issues before they become a long-term drag on your profits.

How Our Process Works

Our methodology is based on our certified accounting professionals’ years of experience and integrates artificial intelligence (AI) to get results. This enables us to review the licensee’s complete set of records and processes more closely and identify calculation errors more quickly than a traditional human-only audit approach.

There are three steps in our process.

Audit Support Across IP Asset Types

Businesses with a wide range of IP assets across industries can benefit from royalty audits, including:

• Media and entertainment
• Technology and software
• Pharmaceuticals and life sciences
• Publishing and book industry
• Consumer goods and franchising
• Manufacturing and industrial design
• Video games and mobile apps

Extensive Royalty Audit Experience

Deeply immersed within the range of industries where IP is licensed, our professionals have extensive knowledge of the nuanced operations of these arrangements. Our collaborative approach takes the time to understand the specifics of your business arrangements and customize our approach to get the answers you need contextualized among greater industry trends and activity.

With our one-firm approach, you can tap into the full resources of our firm, integrating finance, tax, and audit concerns, along with technology and other key support areas.

We help organizations nationwide and across industries to conduct royalty audits, establish internal control structures, create or improve an internal audit function, and maintain regulatory compliance. We provide ongoing education as regulations and public perceptions change. We are trusted advisors for management and boards, and you can be confident in our work and its results.