Royalty audits and brand licensing audits should be regular features of licensing strategies. Entitlements to royalty audits are usually built into licensing contracts and should be enacted regularly. Intangible Business specialises in investigating how brands generate value for their owners and operators and therefore takes a more commercial view in licensing royalty audits.
Royalty audits are carried out by qualified marketers and accountants at Intangible Business. This ensures the rigorous financial aspects are examined and the broader commercial components are also scrutinised. With its experience in valuing, creating and implementing licensing plans, Intangible Business has the inside track on what to look out for in royalty audits and brand licensing audits. The benefit of this experience determines the answers to the following questions:
- Are the correct royalty payments being made?
- What are the causes of any infringements and how can these be resolved?
- How can any underpayment be recovered?
- Is the agreed marketing investment being spent?
- Is the licensing programme contributing to brand and business value?
- Is the licensee working as effectively as they should be for the licensor?
This commercial view to royalty audits and brand licensing royalty audits has the additional effect of putting the licensee on notice that they cannot simply cruise along. Part of the royalty audit involves analysing whether the right royalty rate is being applied. The concluding royalty audit report can be used as a management and negotiating tool to improve future licensing performance.
Intangible Business is experienced in applying forensic accounting skills to royalty income analysis and royalty audits for brands in all major sectors as well as royalty income for copyright from books, music and film. Our experience in licensing litigation ensures we adopt the correct procedures during royalty audits and maintain the appropriate document trail and support.