royalty audit

A royalty audit is a review conducted by a company or rights holder to ensure that payments received from licensees or licensees' reporting are accurate and compliant with the licensing agreement. It involves examining financial records, sales data, and related documentation to verify that royalties are correctly calculated and paid. This process helps protect intellectual property owners’ rights, confirms fair compensation, and identifies any discrepancies or underpayments. Essentially, it's a thorough check to ensure all parties adhere to the agreed terms regarding the use and commercialization of protected assets.