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Cross-Border Cases
Practice review: royalty-audit disputes in cross-border licensing
In cross-border technology or brand licensing, royalty calculation and audit are frequent flashpoints.
A typical scenario: a licensor suspects a licensee under-reported sales-based royalties, and exercising audit rights leads to disputes over data scope and definitions.
Disputes often stem from unclear contract terms on 'how sales are defined and how audits proceed'.
The lesson: define the royalty base, reporting duties, audit-right scope, and discrepancy handling clearly in the license to reduce room for interpretation.