RSM Australia

Royalty audits

Owners of intellectual property, copyrights and trademarks are continually faced with the risk that licensees are not adhering to the terms of contractual agreements and are not paying the full amount due. As a result, royalty audits can result in the identification of underpaid royalties.

RSM’s team of royalty audit professionals are dedicated to protecting the owners of intellectual property, copyrights and trademarks from being taken advantage of in this competitive environment.

In RSM's experience, underpaid royalties have in most cases been attributed to:

  • non-allowable deductions taken by the licensee
  • below market transfer pricing to affiliates
  • mathematical errors and incorrect royalty calculations
  • misinterpretation of the licence agreement
  • omission of sales of new products developed utilising the licensed technology
  • intentional understatement.

The cornerstone of RSM’s approach in conducting these engagements on your behalf is protecting your existing relationship with your licensee. Whilst contractual agreements provide the right to appoint an independent auditor and inspect the accounts and records of the licensee, we ensure that we do not impede or disrupt their normal day to day operations. We act with professionalism and understand that it in the interest of all parties, for the longstanding relationships to continue.

Our professionals examine your royalty contractual agreement to determine whether you are being underpaid.

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