WHEN DO WE DO
A ROYALTY EXAMINATION?
As regularly as possible since the examination provides licensor and licensees with mutual benefit:
Licensor:
Recovery of royalties owed
Avoid costly misinterpretation issues
Improve distribution agreements going forward
Establish confidence in information received
Improve forecasting and budgeting of royalty revenues
Promote a control orientated image to other licensees
License:
Full and permanent compliance with agreement
Trust with licensor which reinforces business relationship
Establish confidence in information sent
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