Every company handling intellectual property rights are preparing for a big change in the coming year. All public companies need to be compliant with these global changes on their fiscal year anniversary after December 15, 2017 and private companies after fiscal year anniversary December 15, 2018. Now is the time to setup a plan to help comply with these mandatory GAAP rules including taking a hard look at licensing processes. These processes come under the new ASC606 and IFRS revenue recognition rules for revenue reported by contracts with customers.
As a software licensee, you know that being audited by your brand owners isn't an unusual event. As the industry has gotten more complex and technology has advanced, brand owners have realized that conducting audits is just good business. Licensees now need to put processes and systems in place to respond to audits without disrupting normal operations.
Historically, brand owners and agents have retained minimal information about the sales, products and royalty income generated by their licensees. In today's business environment, licensors and agents need to collect more information that improves their business intelligence, strategies and day-to-day operations.
Intellectual property rights play a significant role in our economic system: they encourage creativity and enable companies to enhance competitive ranking in the global economy. Piracy and counterfeit goods, however, pose a major threat to this reality.
For many businesses, the future of document storage and sharing is “in the cloud”, or in “cloud computing”. But what does that mean? This whitepaper serves to demystify these terms and provide insight into the benefits and why your licensing solution should exist “in the cloud”.
Your deal memo has been approved, the contracts have been routed through your legal department, and the creative compliance team has been approving products, even before the ink on the agreement has dried. Now the real work begins. Licensors and their licensees need to translate the terms of the contract into the real world of financial compliance, navigating a multiplicity of legal interpretations and brand management issues.
Football merchandise is booming globally. Gone are the days when someone at the club would organize a few scarves and a couple of pin badges to satisfy supporters of the local team. Nowadays, most clubs have a licensing department, often combined with the club’s retail development department, tasked with bringing innovative product to market.
Licensors that establish a solid framework for exchanging information and ideas with their licensees reap many benefits. Creating an open dialog helps licensors and licensees ensure that higher-quality products reach store shelves quickly, leading to increased revenue for both parties.
Once upon a time, the audit clause in licensing contracts was rarely brought into play, and usually only towards the end of an agreement in cases where the licensor suspected that royalties were underreported. The licensor’s action often severely damaged its relationship with the licensee, whether or not the audit uncovered anomalies.
As an event driven business, licensing organization are always challenged to record revenue and profits around a diverse portfolio of properties and contracts. This article is written to help companies looking for better options on how to account for different models and develop stronger finance practices.
Strong contract terms, detailed definitions, and efficient reporting and communications are key.
Simple steps for strengthening your business by better managing your licensing portfolio.
When the times get tough, are you tough enough to keep growing?
Investing in automation makes good business sense, even now
Integrated product approval processes to finance is the key to better administration
Web based systems saves time & money and are more efficient than older client/server tools.
Defining product definitions and granted rights properly is a critical component of implementation
Tips for shopping vendors on new licensing administration software