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Product Licensing and Royalties
More than ever before, organizations depend on trusted relationships that push product revenue in a challenging economic climate. We help you execute on your objectives to deliver superior performance whilst navigating risk.
Managing the Licensing Relationship
Product Licensing is a significant driver of revenue for many organizations.
However, managing the relationship, ensuring agreement compliance and
accurately measuring revenue performance can be complex.
  • Modern developments and innovations allow this to be executed more reliably
    and seamlessly than ever before, with a lower cost point.
  • Revenue Leakage is an ongoing challenge causing value erosion.
  • Improving confidence and assurance for product licensing performance in the
    current economic climate will be critical over the next 36 months.
Major Data Points
  • An estimated 78% of agreements contain misreported revenue
  • Discrepancies can typically attributed to contract complexity, clerical errors, accounting mistakes, or fraud.
  • Contractual complexity, which may in many cases increase license revenues, correlates also with increased risk and should be linked to a risk management procoess.
Glass Buildings
Our Service
A holistic, outcome driven service that retrofits innovation and results to deliver your royalty yield potential.
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Services Differentiators
  • Multi-faceted approach to improving revenue
  • Dedication and focus to evolve Client outcomes 
  • Technical innovations and accelerators
  • Data analysis acumen to drill into the underlying truth
  • Global experience across 24 countries
  • Our understanding of what drives your business
Product Licensing - Licensee
Overcoming Increasing Complexity
  • Licensing agreements often have a clause, sometimes not completely clear and obvious, that audit costs are to be absorbed by the licensee, especially if the reported royalty exceeds a threshold.
  • Compliance over time with licensor will typically result in more favorable terms and conditions, improving both top (revenue) and bottom (profits) line.
  • A robust but transparent royalty system can reduce non-compliance penalties by up to 60%.
  • An agreement should not be the sole mechanism to be depended on. Relationships and trust must also be an investment.
How we Help
  • Relationship Development and Risk
  • Third Party Ecosystem
  • Strategy
  • Assessing Compliance and Contracting
  • Royalty Optimization
  • Technology
Takeaway
Through our knowledge and experience of working both on the licensee and licensor sides, we know where you need to be to gain the most from your product licensing objectives. We also bring our technology expertise to bare which is a major competitive advantage for us within this industry, which translates into major technical advantages in your operational execution.
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Product Licensing - Licensor
Navigating Disruptive Complexity
How we Help
  • It has been estimated that approximately 78% of licensing audits find that royalties have been underpaid.
  • With the right approach, license audits can be used as a mechanism to enhance trust and strengthen the relationship. Poorly managed audits can encourage the reverse.
  • Where an audit is viewed negatively, long term relationships are eroded.
  • A robust royalty system will grow royalty revenues and reduce reconciliation costs by 40%.
  • A transparent royalty system grows trust and lowers cost on both sides of the relationship.
  • An optimal agreement is one which is based on common goals with clear and consistent two-way communications.
Experience that is cross industry and multi discipline creates pooling of best in class approaches leading to  best in class outcomes. Fundamentals, flexibility, agility, execution.
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Takeaway
We can assist you regardless of your maturity path and current circumstances, with various capabilities at our disposal to maximize and enhance the royalty program over the shorter and longer term whilst navigating risk and disruption.
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