For more than thirty years, the principals of Global Royalty Audits, Inc. (“GRA”) have served as royalty audit experts, managing and performing hundreds of royalty audits and royalty examinations worldwide. Our work has spanned North and Central America, Europe, Asia, Africa, and the Middle East, and our client base ranges from non-profit organizations to Fortune 500 companies. GRA’s royalty audit practice covers a wide range of industries, including aerospace, agriculture, applied materials, bio-technical/medical devices, consumer products (including toys and textiles), hardware, pharmaceutical, publishing/authors, software and telecommunications.
Royalty audits are the core focus of GRA’s practice and the foundation of our advisory services. As specialized royalty audit experts, we are dedicated exclusively to evaluating the licensee's compliance with royalty reporting and payment obligations. This singular focus has allowed GRA to develop a deep familiarity with complex license agreements, royalty calculation methodologies, reporting systems, and the operational and structural factors that commonly give rise to underreported royalties.
As a result of this experience and expertise, GRA has uncovered and assisted licensors in identifying hundreds of millions of dollars in unpaid royalties. Royalty audits differ materially from traditional financial audits; they require an integrated understanding of contract interpretation, accounting principles, data systems, and business processes. GRA’s principals bring this integrated perspective to each engagement, enabling issues to be identified efficiently and supported with clear, defensible analysis.
The qualifications that distinguish GRA as royalty audit experts include:
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Analysis of royalty definitions, reporting obligations, deductions, territories, and audit rights.
Review of the licensee’s books, records, and supporting documentation relevant to royalty reporting.
Independent recalculation of royalties in accordance with the agreement to identify variances and potential underpayments.
Preparation of formalized audit report, including detailed schedules and supporting evidence suitable for discussion, negotiation, or dispute resolution.
Assistance with recovery discussions, settlement negotiations, or subsequent dispute proceedings, as requested.
Over hundreds of royalty examinations, GRA’s principals have encountered virtually all of the common issues that lead to the underpayment of royalties. These include unrecognized licensed product sales, incomplete reporting by foreign subsidiaries or affiliates, overstated or unauthorized deductions, incorrect application of royalty rates or calculation provisions, and misinterpretation of key contractual terms. Our experience allows these issues to be identified quickly and evaluated within the context of the governing agreement and the licensee’s reporting systems.
This depth of exposure has resulted in a long record of successful royalty audits across numerous industries. By applying a disciplined, evidence-based approach, GRA assists licensors in identifying unpaid royalties, understanding the root causes of non-compliance, and pursuing appropriate recovery.
GRA’s royalty audit experts have experience across a wide range of industries, including:
If you have any questions or require further details of our services, please do not hesitate to contact us for an initial consultation without charge or obligation.