Revenue generated from the commercialization of intellectual property (IP) is one of the most significant and fastest growing sources of earnings today. Given the impact patent licensing can have on the bottom line, it’s not surprising that organizations are placing increasing emphasis on the revenue potential of their intangible assets.
Few managers can attest to the accuracy and completeness of their past and existing license revenues. However, this is no longer an option in today’s economic and legislative environment. The future definition of managerial responsibility will certainly include policies and procedures that ensure cost savings and increased income wherever possible. It is likely that managers may soon be held legally accountable for how they handle IP licenses and other intangible assets.
- Royalty Audits — Verification of the completeness and accuracy of reported royalty streams through on-site investigation and analysis of the licensee documents and interview of the licensee personnel
- Desk Audits — Determination of the likelihood of royalty misreporting through historical analysis and metrics compared with publicly available information
- Royalty Reporting / System Audits — Comprehensive royalty reporting system development includes customized manuals for licensor and licensee to ensure that institutional and procedural knowledge is maintained in the event of licensee personnel changes
For information on our other intellectual property services, see Intellectual Property License Management Services or Intellectual Property Transaction Services. |
Invotex IP professionals report on their annual studies of the impact of royalty misreporting:
Underpaid Royalties Are Pervasive, yet Proper License Management Maximizes Profits, March 2011.
It's Just Not Fair: Unintended and Unforeseen Interpretations of License Agreement Language, April 2010.
How to overcome obstacles in license management, March 2009.
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