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Cases · Technology & intellectual property · Patents, trade secrets & technology licensing

Collect royalties owed by a licensee abroad

Our licensee abroad is under-reporting royalties. How do we collect?

WONE Global arranges an audit under the licence, quantifies the shortfall, and claims it through negotiation or proceedings in the licensee's country, terminating the licence if necessary.

Countries in the typical case United Kingdom · Nigeria

The situation

What is happening

A licensee or franchisee is under-reporting sales or not paying royalties.

What is at stake

Under-reported royalties compound every year they go unchecked, and the evidence becomes harder to obtain.

Who faces this

  • Corporations
  • Mid-sized companies
  • Sport and entertainment

A scenario

Franchise brandMid-sized company · from United Kingdom · in Nigeria, Ghana

It believes its master franchisee in West Africa has been under-reporting for two years.

Where it ends Royalties recovered and reporting fixed.

A representative scenario of the work WONE Global coordinates, not a specific client’s matter.

Also asked as “Royalty audit of a foreign franchisee”“Unpaid licence fees abroad”

The solution

How WONE Global handles it

WONE Global arranges an audit under the licence, quantifies the shortfall, and claims it through negotiation or proceedings in the licensee's country, terminating the licence if necessary.

Usually led by Trade marks, patents and brands, with Audit, Disputes and arbitration and Tax and structuring.

Step by step, in the scenario

  1. Week 1Audit rights invoked.
  2. Weeks 2-5Local audit of sales records.
  3. Week 6Shortfall claimed.
  4. ThenPayment plan, or termination and a claim.

Timings are typical. They depend on the countries, the authorities involved and how quickly documents are available.

Decisions

The decisions involved

  1. 01Audit rights under the agreement and how to exercise them
  2. 02Whether to renegotiate, terminate or claim
  3. 03How withholding tax affects what you can recover

Outcomes

What you receive

  • A royalty audit
  • A recovery claim or renegotiated agreement
  • Termination and transition plan if needed

This is a general guide. Your WONE Global professional confirms the work, timing and fees for your markets before anything starts.

Who handles it

Trade marks, patents and brands, market by market

The status of the lead service in the markets that matter for this case. A named WONE Global Partner acts under their own licence; where none is in place yet, WONE Global confirms availability before anything else.

  1. Nigeriain the typical case On request Availability confirmed before any work begins Bring a requirement →
  2. United Kingdomin the typical case On request Availability confirmed before any work begins Bring a requirement →
  3. Poland WONE Global Partner Anna Pawlikowska · Partner Brief this Partner →
  4. Uganda WONE Global Partner Tony Galandi Kiire · Managing Partner Brief this Partner →
  5. India On request Availability confirmed before any work begins Bring a requirement →
  6. Saudi Arabia On request Availability confirmed before any work begins Bring a requirement →
  7. Singapore On request Availability confirmed before any work begins Bring a requirement →
  8. United Arab Emirates On request Availability confirmed before any work begins Bring a requirement →
  9. United States On request Availability confirmed before any work begins Bring a requirement →

Other markets: WONE Global covers 100 countries. Name yours in the requirement →

Anna PawlikowskaKraków · Poland

WONE Global Capability Partner · Poland

Anna Pawlikowska

Partner · Zacharzewski & Partners Law Office · Kraków

Legal Adviser. Co-founder of the Firm. Has been advising parties on technology contracts for more than a dozen years. Specialises in intellectual property law and new technologies. Provides day-to-day legal services to …

Tony Galandi KiireKampala · Uganda

WONE Global Capability Partner · Uganda

Tony Galandi Kiire

Managing Partner · Diamond Advocates · Kampala

Tony Kiire is the Founding and Managing Partner of Diamond Advocates, where he leads the Technology, Innovation, and Intellectual Property Law practice. He is also the founder of Lawtech Associates and Consult, the comp…

Pablo Andres GuerraQuito · Ecuador

WONE Global Capability Partner · Ecuador

Pablo Andres Guerra

Country Managing Partner · G&G Auditores Independientes & Lex Fiscal Corp · Quito

Experienced Partner with a demonstrated history of working in the accounting industry. Skilled in International Tax, External Audit, Generally Accepted Accounting Principles (GAAP), Income Tax, and Tax. Strong entrepren…

WONE Global Intelligence

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UNIONE™ · Before You Arbitrate™

If this becomes a dispute, test it first.

Test the claim or the defence, the evidence, the exposure and the settlement options before committing to formal proceedings.

For this moment

UNIONE™ is the UNBOUNDED™ Global Ecosystem's institution for cross-border dispute prevention, resolution, arbitration and enforcement. Like WONE Global, it is part of the ecosystem, and the two work as one. Links open theunione.org. Visit UNIONE™ · Disputes with WONE Global and UNIONE™