Patent and Copyright License & Royalty Audits
Royalties generated from copyrights and patents (intellectual property | IP) is a major source of earnings today. Since the revenue streams generated by the licensing of either copyrights or patents can have a significant impact; many managers are intensifying their efforts to ensure that they are receiving the proper contractual royalty payments.
Are you receiving accurate accounting and payments? Contact Sherwood Partners, LLC to conduct a Patent License and Royalty Audit.
Protect your patents and copyright license(s)
Verify that all royalty income has been correctly paid and calculated
Indentify the royalty payment process
Identify any fraud
Sherwood starts with a thorough analysis of the license agreement. We then design our audit approach to investigate areas that have the potential for understating royalties due. These areas include:
Revenue improperly allocated to other properties
Revenue improperly excluded
Identify and quantify contract interpretation issues
Improper expense allocations and tax computations
Sherwood offers two levels of Royalty Auditing:
For our On-Site Investigation, Sherwood conducts its examination at the Licensee’s premises, analyzes source documents, accounting records and interviews personnel.
For our Desk Audit, Sherwood conducts an audit on the historical information and then compares it to publicly available information.
In addition, Sherwood can document and recommend system improvements at both the Licensor and Licensee to improve royalty reporting and collection.