Breaches of royalty contracts through the continuous underreporting of royalty amounts from licensee to licensor are increasing across all sizes of enterprise. Nakamoto & Company is one of the few firms to have dealt with royalty audit for many years in order to protect the value of intangible assets such as a company’s technology and ideas.
Royalty audit differs from the audit of financial statements because clients request the detection of licensee misstatements in the short term. There are two patterns of continuous breach of contracts by the licensee. The first is intentional misstatement by the licensee, and the second is misstatement arising from a licensee’s lack of understanding of contract details.
Auditors are required to have experience and knowledge of identifying risks in the two above-mentioned cases in the short term.
Nakamoto & Company are continuously offering value to clients who are licensors through monetary return, with the detection of underreporting conducted by a professional team with many years’ experience in royalty audit. Our joint team of Japanese and local staff enables us to handle cases brought against licensees not only in Japan, but also in foreign countries.
Royalty audit is not limited only to industrial technology; it also extends to brand and trademark licensing.