In a nutshell, Royalties are payments that you are entitled to. While it sounds simple enough, getting your ‘fair share’ can be complicated. An audit will ensure all parties involved are playing by the same rules.
A Royalty/Licensing Compliance Audit veriﬁes if the Licensee (user of a Patent, License or Franchise) is complying with the agreement or contract. Thus, this audit will determine if the Licensor is receiving the agreed-upon fees.
Our industry experts have been successfully performing Royalty Compliance Audits for companies that have developed and continue to develop IP. We provide quantiﬁable ﬁndings that can aid in the strategic negotiation and collection of unreported royalties/licensing revenues.
Common Industries that generate royalties:
- Life Sciences
- Educational Institutions
A Royalty Compliance report by Invotex states that a staggering 86% of licensees audited underreport and underpay royalties; 56% underreport sales.
COMMON REASONS FOR INCORRECT REPORTING OF ROYALTIES
ROYALTY/LICENSING AUDIT BENEFITS
An independent Royalty/Licensing Compliance Audit provides you with quantifiable data, which is essential in collecting underreported royalties/licensing revenues.
Recover lost revenue due to royalty underpayment
Enhance communications between both parties
Bring transparency to contract interpretations
Demystify the license language and terms
Safeguard IP and mitigate mishandling risks
Create a more robust compliance program
We have saved our clients more than $10M in royalty payments – and recovered millions more in lost royalty revenue.
Learn about the tax advantage and identify eligibility for your business.
Discover how to build internal controls and improve compliance.
Learn about the revised ASC 606 standards and new revenue models.
Learn how Astute's Royalty and Compliance Audit® can enrich your bottom line!