Participation royalties are a portion of earned royalties that must be paid to a third party, such as a licensing agent, intellectual property owner, actor, athlete, inventor, or artist. Participation royalties are often paid for only a specific licensed property or group of properties. Participation can also be limited to a single license agreement, or a specific territory.
Calculating participation royalties using spreadsheets is very difficult. Licensors must analyze sales data across all of their licensee’s royalty reports to identify only those sales and royalties that match the participation rights criteria. In addition, Licensors must filter out any royalties that have been reported, but are not yet paid. Recouped advances, advance payments, and guarantee payments must also be analyzed and included. For these reasons, participation royalty reporting is an ideal process to be automated by royalty software.
RoyaltyZone’s new Royalty Participation features automate the royalty calculation and reporting process for Participation Agreements:
- Define and track Participation Agreement terms, including rights, rates, advances, guarantees, and fees
- Create participation royalty reporting rules to define when reports are due, and what data fields need to be included
- Identify source agreements from your pool of licensed out license agreements
- Create and calculate participation royalty reports with just one click – all matching sales and royalty data is automatically imported!
- Export participation royalty details to XL for distribution to third party recipients
- Analyze results and measure success with Trends and Analysis charts
- Create and pay invoices for royalty owed
- View the full history of every royalty report and invoice for each participation agreement
- Receive email reminders with participation royalty reports are due
To learn more about managing royalty participation with RoyaltyZone, check out these tutorials:
How do I create a Participation Agreement?
How do I keep Participation Agreement and Source Agreement rights in sync?
