Protiviti was approached by an existing client that received a portion of revenues from licensing intellectual property (IP) and asked if we would audit a licensee to substantiate compliance with the existing licensing agreement.
Protiviti’s Licensing and Contract Risk Services professionals were able to provide our client with insight into several key areas after the team:
As a result of quantitative analysis detailing erroneous reporting, unit sales by product, and variance between reported royalties and royalties owed, we identified $3.7 million in undisputed, under-reported royalties. Within weeks of the audit’s conclusion, our client received a check for $2 million in settlement. In addition, we helped them to renegotiate the contract with the licensee, extending the life of the contract and gaining more favorable terms.
Effective revenue risk management requires a methodology and thought process focusing on those customer- and product-centered activities that have a significant impact on revenue, as well as the cost-drivers required to generate that revenue. Protiviti’s revenue risk management methodology helps clients reduce costs while increasing revenues, and strengthen partnering relationships. Protiviti helps provide a product strategy around profitability – increasing profits by as much as 3 percent to 5 percent of total sales, providing a focus on customer risk management, and reducing fraud.