Check your licensees are paying the right amount and using your intellectual property correctly with a royalty audit from Evelyn Partners.
The licensing industry continues to grow and adapt to changing consumer demands following the Covid-19 pandemic. As well as responding to digital shifts, licensors are becoming more purpose-led, with the aim of creating a better society and more sustainable businesses.
In this era of rapid change, it’s vital to monitor the performance and reporting of those you give licences to. You need connected advisers who are up to date with the latest challenges and opportunities. And that’s where our royalty audit procedures come in…
How will an Evelyn Partners royalty audit help you?
Our dedicated royalty audit team offers a wealth of specialist knowledge and experience. Whether it’s working within a licensed business, understanding how licensors operate or managing relationships, we’ve got it covered.
Evelyn Partners can deliver a health check on how a licensee is performing, to help improve transparency. We can also provide peace of mind as to whether a licensee is using your intellectual property appropriately.
Our royalty audits can review the use of a:
- Any other IP that has been licensed
We’ll carry out a range of assessments – from reviewing financial positions, to checking compliance with contractual obligations, such as advertising expectations or promotional commitments.
Licensee health checks for peace of mind
It’s often hard to get clear visibility over how a licensee is performing, and whether their reporting provides a true picture of overall performance. Our licensee health checks can carry out this assessment for you, ensuring payments are fair and accurate.
Our financial health checks can:
- Verify under-performance: with the help of an impartial external review
- Review current terms: we can offer guidance on whether any existing terms are reasonable when a contract is set to expire
- Assist with additional clauses: our knowledge of other licensors and market trends allows us to recommend extra clauses for revised contracts
Monitoring unauthorised IP use
Unauthorised use of your intellectual property can dilute your brand – whether it’s intentional or not. With the help of our royalty audit procedures, we can cast an external eye over your contracts to see where things stand.
We’ll check for issues like:
- Sales in an unapproved territory
- Designs being released to the market before approval
- Use of your brand that hasn’t been granted
- Sales by a connected company that aren’t covered by the rights of the contract
Checking deductions are fair
Your licensees may be unaware of contract clauses relating to deductions and discounts – and whether there’s a percentage or monetary cap. Without clear visibility of the calculations being applied to statements, they might understate what is owed.
An Evelyn Partners royalty audit will confirm whether any deductions being applied are within reason. We’ll let you know if there are indications of under-reporting – and what the financial impact is.
Learn more about our royalty audit services
Review all the ins and outs of our royalty audit processes by getting in touch today. Simply contact one of our experts for further information.