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IP | Royalty

Gray market activity and IP royalty non-compliance cost billions

Many companies in high tech, pharmaceuticals, life sciences, entertainment and apparel generate revenue based on royalties for intellectual property (IP) embedded in partner products. These companies depend on channel royalty reports submitted by their licensees to determine payments and receivables. Depending on the category and geographic market, fraud and/or under-reporting can be massive. 

 

250 Billion and 750,000

Annual revenue lost due to intellectual property (IP) threats to domestic companies. Add to that the loss of about 750,000 jobs.

 

The U.S. Dept. of Commerce estimates up to $250 billion in annual lost revenue due to IP royalty non-compliance. For licensors, IP royalty compliance is a time consuming proposition, and if it's not done right, leads to significant revenue shortfalls. 

 

IP | Royalty Channel Challenges

Eliminating piracy and fraud in an ongoing process. Key capabilities required to maximize revenue realization include but are not limited to:

  • Collecting and normalizing royalty-related data
  • Reconciliation of data from multiple sources to detect potential under-reporting
  • Management of royalty agreements
  • Royalty accounting and revenue management
  • Royalty forecasting
  • Consolidated channel dashboards and analytics with partner scorecards for complete channel insight
  • Complex sales credit assignments based on technologies, territories, named accounts and splits
  • Royalty compliance risk determination
  • Field compliance for gray market abatement
  • Royalty expense calculations

 

Entomo's Comprehensive IP | Royalty Management System

Entomo's IP | Royalty module provides everything you need to minimize gray market losses and lost recovery revenue. Capabilities include:

Automated Royalty-Related Data Collection from Licensees

  • Royalty reports, IC shipments, product shipments, POS
  • Data transformation and validation from various licensee formats
  • Reporting compliance metrics

Automated Reconciliation of Inventory

  • Inventory buildups
  • Missing inventory
  • Royalty paid by others (OEMs)

Royalty and Compliance Analytics

  • Repository for IPR (IP Royalty) agreements
  • Online repository for historical and current licensee reports
  • Online product linking database: IP-licensed products
  • Customized reports and trend analysis
  • Customized licensee risk classification/scorecarding

Royalty Financials

  • Calculations and validations of royalty payments
  • Invoicing
  • Revenue recognition
  • Royalty forecasting

SOX Compliant

  • Key controls, segregation of duties, audit trails
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