Contract Compliance Consulting

Blackman Kallick provides Contract Compliance Consulting to help clients protect and enforce their rights to own and use patents, trademarks, copyrights and trade secrets, as well as franchise agreements.   Many companies recognize significant royalty revenue from licensing intellectual property such as electronics, software, publications, and other assets.  Mathematical error and misinterpretations of license and franchise agreement language can mean thousands, or even millions of additional royalty dollars are lost.  At times, licensees may intentionally understate sales subject to royalty, which is not as easy to detect, but it does happen, and it can result in additional lost royalty revenue to the licensor.

Blackman Kallick has assembled a multidisciplinary contract compliance consulting team comprised of certified financial analysts (CFAs), certified fraud examiners (CFEs), certified public accountants (CPAs), and computer specialists to perform the following:

  • License and royalty investigations throughout the nation 
  • Resolve licensing disputes
  • Discover facts to be used in negotiations
  • Determine contractual compliance with license / franchise agreements
  • Verify payments made by licensees/franchisees.

We bring our computer forensics skills to many of these assignments, making us particularly effective. Through our experience in reviewing license and franchise agreements and auditing the related royalty streams, we have uncovered numerous instances of inaccurate reporting of royalties, frequently due to misinterpretation of the license agreements.  Our professionals are able to quickly gain an understanding of the reporting requirements of a licensee or franchisor and identify obstacles to accurate reporting, including:

  • License agreement misinterpretation issues
  • New or revised product codes or descriptions
  • Incorrect pricing or units of measure being used
  • Disallowed deductions
  • Complex sub-licensee agreements
  • Differences in royalty rates being used
  • Identify potential patent infringement issues.

Additionally, our professionals have assisted in provided timely suggestions as a result of our consulting engagements, resulting in significant benefits to our clients in royalty contract negotiations.  Our job is to help you identify the royalty income owed to you. Through mutually agreed-upon procedures, we can assist you in determining whether your licensee or franchisee is reporting sales and the related royalties according to the terms of the agreement.   Additionally, we can assist you in establishing an effective compliance monitoring program going forward.

No two engagements are alike.  Regardless of the size, complexity or sensitivity of your matter, it will receive the close personal attention, insightful planning and creative thinking of our experienced team members.

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For more information about our Contract Compliance Consulting Services, please contact:


This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.