27 Jun

5 Hidden Ways Licensors Lose Money


In the past decade, IP Commerce has become incredibly lucrative, yet at the same time it has reached a whole new level of complexity. Lack of visibility into contracts, reporting and analytics can mean licensors are losing money without even knowing it. Here are five problem areas, and what you can do to solve them.

1. Lack of Visibility into Licensee Usage. Statistics show that as much at 70% of self-reporting on licensing contracts is inaccurate. When licensors are getting erroneous sales data, it means they will have to spend time and money on audits in order to enforce royalties and rates.

2. Overlooking License Violations. Due to complex terms, the lack of information flowing to rights departments and poor visibility into negotiated usage, many licensors miss violations, which means they are essentially giving IP away for free.

3. Accounting and Legal Costs. Contract reviews, dispute resolution and litigation are all costly endeavors, yet without insight into usage, they’re necessary to make sure you are getting paid for your licensed property.

4. Poor Forecasting. When you don’t know how your IP is performing, it is difficult to accurately forecast future costs and revenues as well as take advantage of growth opportunities.

5. Under- and Overpayments. Clearly, licensors are losing money when a licensee underpays for usage. However, overpayments have their own hidden costs. Accounting and administrative fees are incurred when you must true up accounts and process refunds.

FADEL’s cloud-based solution empowers licensors to protect, manage, monetize and measure IP. With unparalleled insight into contract terms and usage, you can easily enforce licensing terms and calculate financials. At-a-click reporting and analytics give you the data you need to prepare for new launches and negotiate contract terms. Learn more about FADEL IPM Suite >>

For an easy reference of where you could be losing money, take a look at the infographic Are You a Victim of Leaky IP?

Categories associated with this post: Licensors, 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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