Royalty audits exist to address information asymmetry in certain types of business relationships. When one party is paid depending on the self-declared conduct of the other there needs to be some way by which the trusting party can check whether it is getting the deal it contracted for. These sorts of arrangements have existed for hundreds of years. Oddly, it seems that some licensors are prepared to give up this right.
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Authors:
- David Eastwood
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Segment:
- Economic & Financial Consulting
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Asset type:
- Article
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Topic:
- Valuations & Disputes
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Country:
- UK
Date published:
- October, 2017