Invotex: 89% of audited licensees underreport and underpay royalties


In its 13th Annual Royalty Compliance Report, Invotex found 89% of audited licensees underreport and underpay royalties and 56% underreport sales. In 2007, the number was 80%, so things do not appear to be improving.

Three types of errors account for more than 85% of all of the unreported or underreported royalties: “Questionable license interpretation,” royalties from underreported sales,” and “royalties from disallowed deductions.”


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