Royalty Audits

Our royalty investigation will help you identify what is rightfully yours

Are you carefully monitoring what is rightfully due you? Mathematical errors and misinterpretation of license agreement language can mean thousands to millions of additional royalty dollars are owed. Intentional understatement of sales subject to royalty is less easy to detect, but it does occur, and it can also mean significant additional royalty dollars are owed.

Our contractual compliance group focuses on performing royalty investigations on a worldwide basis for licensors of intellectual property, copyright or trademark licenses.

Our job is to help you identify the royalty income owed you. Through mutually agreed-upon procedures (commonly referred to as "royalty audits", we assist you in determining whether your licensee is reporting sales and their applicable royalties according to the terms of your license agreement. Additionally, we are able to assist you in putting in place the right compliance monitoring programs.

Our Approach
During our royalty engagement, we perform agreed-upon procedures, including those designed to determine if:

  • You have procedures and controls for monitoring when royalty payments should be received and if the amount is within an expected or given range.
  • Your system has "red flags" notifying you if there is a deviation from last month's/year's payment or the average payment to date.
  • Your licensee reports its royalty data in the format and detail mandated by the terms of the license agreement.

Our Experience
We have more than 40 years of cumulative experience in conducting royalty investigations. We assist our clients on internal royalty monitoring systems and license agreement language as it relates to accounting terms and definitions, as well as audit paragraphs, all of which afford the licensor greater protection of royalty streams. During the past 10 years we have identified millions of dollars of unpaid royalties, due to:

  • Clerical error
  • Misinterpretation of license agreement language
  • Development and sales of new products that utilize the licensed technology, not being included in the royalty reports
  • Intentional understatement

How You Will Benefit
The benefits of our royalty investigations come to you in dollars and cents. Over the past 10 years we have helped our clients identify millions of dollars of unpaid royalties. Based on our experience, we believe that it is good business practice to conduct royalty investigations, the rewards of which many times exceed the costs of doing so. In many cases, based on our findings, the burden of the cost has been shifted to the licensee.

For more information contact Sidney Rattner at 847.517.7070.

How can we help you?

To discuss how our team can help your business, contact us by phone 800.274.3978 or