Royalty Agreements

Royalties can look simple on paper — until you start working out exactly what is being paid, when it is paid and how it is calculated.

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Royalties can be one of the most important commercial components of an intellectual property licence.

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Whether royalties relate to merchandise, brands, music, publishing, content or another form of IP, the agreement needs to establish how the payment is calculated and how the underlying sales or revenue are measured.

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We can advise on:

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• Royalty percentages

• Net sales definitions

• Gross sales

• Minimum guarantees

• Advance payments

• Milestone payments

• Reporting obligations

• Payment timing

• Audit rights

• Deductions

• Currency and territory

• Sales reporting

• Royalty disputes

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Getting the numbers right

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A royalty percentage only tells part of the story. The definition of the revenue against which that percentage is calculated can have a significant commercial impact.

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Clear reporting and audit provisions can also help both parties understand how the arrangement is performing.

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Not sure whether your royalty arrangement gives you the clarity or protection you need?

 

Let's talk, Book a call.​