Investigations for Companies: Protection of Registered Trademark

In civil law, the term “royalty” refers to the right recognized to the owner of an oil or mineral deposit, or to the author of an invention or intellectual work, to receive a payment from anyone (hereafter called the licensee) who exploits these properties. More simply, a royalty is the sum of money that the licensee must pay, based on the contract signed with the owner of the intellectual property or natural resource deposit, to use and economically exploit the owner’s asset (whether tangible or intangible).

We talk about a license contract or licensing relationship when the licensor (an individual or legal entity) grants the licensee (an individual or legal entity) the right to use a patent or trademark in exchange for the payment of royalties.

However, problems may arise for the licensor even if a proper license agreement has been signed. These issues often involve fraud and deception by licensees, who use the intangible asset for illicit purposes or in ways that violate contractual terms (for example, when the licensed trademark is used by the licensee to counterfeit or produce goods that do not meet the standards required by the licensor). Problems can also arise from underpayment of royalties, referring to the failure to comply with the financial clauses in the license contract: the licensee might not declare a portion of the revenue to the licensor, or might illegitimately apply discounts or rebates on marketed products to reduce the royalties owed. Additional issues may concern unauthorized use, such as the licensee exploiting unauthorized sales channels or marketing the branded product in markets not previously agreed upon.

To protect the interests of the licensor and ensure compliance with all clauses of the license agreement, it is essential to consult experts in “Royalties & Licensing Audits” to effectively safeguard patent and trademark owners from possible frauds that unjustly reduce the income derived from exploiting such intangible assets.

The investigative agency’s role in monitoring rights related to trademarks, patents, and licenses involves activities such as verifying the truthfulness and accuracy of the licensee’s declared revenue, inspecting payment methods and timing, and thoroughly checking all economic and financial clauses specified in the license agreement.

Only authorized and specialized investigative agencies, such as the investigative agency Argo, with its team of private investigators in Rome and experts in legal and accounting fields, can conduct such comprehensive and efficient audits. Argo ensures impeccable control to verify whether the licensee has complied with all the clauses of the license contract, paying the trademark or patent owner all due royalties and guaranteeing the necessary transparency during the execution of the license agreement.