15 Mar

Are You a Victim of Leaky IP? (INFOGRAPHIC)


 

Intellectual property licensing generates $144 BILLION in retail sales annually in the U.S. and Canada alone. With so much money flowing between licensees and licensors and all of the contractual and payment complexities involved, a value leak from an IP system can be invisible–and costly.

infographic_leaky

 

What’s Inside a Leaky IP System? 

Outbound Payments and Fees

  • Incomplete information flowing to IP rights departments such as about license expiry dates, territory restrictions, and restrictions on asset usage
  • Potential legal liability for accidental licensing and usage violations
  • Difficulty in understanding timing, terms, and rates of royalty payments, commonly leading to deliberate overpayment of royalties to avoid disputes

Revenues from Incoming Royalties

Lack of visibility into data from the licensee, leading to:

  • Inaccurate tracking or reporting of sales
  • Inability to enforce proper royalties and rates
  • Underpayment of inbound royalties

License violations overlooked due to complex terms and lack of information flowing to IP rights departments.

Accounting and legal costs of contract reviews, dispute resolution, and litigation.

As much as 70% of self-reporting on licensing contracts is inaccurate. 

Financial Analysis and Forecasting

  • Time and cost of manual processing of royalty payments
  • Inaccurate accounting and reporting to shareholders and regulators
  • Poor forecasting of future costs and revenues, not what-if forecasts
  • Negotiating disadvantages in future deals caused by lack of timely and accurate IP financial data

Analytics

Failure to truly understand IP asset performance due to:

  • Failure to capture sales-level data
  • Inability to break down data into useful categories

Missed growth opportunities due to lack of insight into how IP assets are performing.

 

Categories associated with this post: Infographics, Rights Management, Royalty Management
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Devi Gupta
Devi is responsible for developing and executing a marketing and communications strategy to support FADEL’s business growth and enhance its brand awareness. She manages all marketing functions including market positioning, branding, communications, demand generation and strategic alliances. Devi brings over 20 years in the technology industry having run the marketing departments at software firms Prolifics, Capital Banking Solutions and Cedrus, as well as playing a strategic role on their executive teams to help drive company direction. While at Prolifics, a systems integrator specializing in IBM technology solutions, Devi played a major role in growing that relationship to become one of the largest and award-winning IBM business partners. At Capital Banking Solutions, Devi was responsible for global marketing, particularly in emerging markets across Africa, the Middle East and Latin America. Devi also held Product Management, Product Marketing and Sales Engineering roles and was a programmer and relational database specialist at the Philadelphia Electric Company. She has a Bachelor of Science degree in Computer Science from Cornell University.

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