RoyaltyStat

Transfer PricingFinding Comparables for Intangibles

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What is RoyaltyStat?

RoyaltyStat is a tool designed to establish arm's length royalty rates for the inter-company transfer of intangibles under the OECD transfer pricing guidelines and under the specific country rules following the OECD guidelines.

contains a database of royalty rates and license agreements accompanied by software that analyses validates and fully documents royalty rate data

What is RoyaltyStat?

The RoyaltyStat Difference

Reliable rate data + Full original documentation=

Comparables that withstand audit and litigation

The RoyaltyStat Difference

Design standard:– Under the OECD Guidelines "full contractual terms" of each

agreement is required in order to establish comparability- as per the treaties of the USA, Canada, Mexico, UK, France, Japan, Germany, Netherlands, etc

The RoyaltyStat Difference

Reliability of rate data– Based on original license agreement data from SEC filing

databases– No use of data sourced from trade press, press releases, and

unsupported SEC filings– Every license agreement in RoyaltyStat contains at least one

numerical (non-redacted) royalty rate or license fee– The highest among tiered royalty rates is reported.– The database is updated every business day.

The RoyaltyStat Difference

Reliability of rate data– Over 32,000 license agreements contained in SEC databases

were reviewed by RoyaltyStat editors – Only those with un-redacted rate data were included in the

database – approximately 6000– Updated daily– Highest numerical rate used in analysis– Each license agreement was carefully analyzed for content:

Licensor, Licensee, Type of agreement (15), Territory, Exclusivity, Lump sum payments

The RoyaltyStat Difference

Documentation to support “full contractual disclosure”– Every royalty rate in the database has an original license

agreement to support it– License agreements in scanned and PDF format– All supporting SEC filings in scanned and PDF format– Description pages in PDF format for each agreement– Printable charts for validity testing on:

• Frequency, Duration, Territory, Exclusivity

The RoyaltyStat Difference

Powerful menu driven database searching– Search by intangible property, licensor, licensee, SEC filing date,

agreement type, SIC codes, effective date– Full text search for additional inquiry– Royalty Tableau present key data field for selection of

comparables

The RoyaltyStat Difference

Full economic analysis– Summary rate statistics include: Maximum, Minimum, Median,

Average, Quartiles– Statistics can be performed on the fly, in order to do "what-if"

analysis by changing the dataset, i.e. by changing the records on the dataset

– All results can be exported to Excel for further analysis, adjustments and presentation

– Validity testing for Frequency, Duration, Territory, Exclusivity

Easy to Use

Search Select Analyze Report

Easy to Search

Search the database of over 6000 agreements for comparable royalty rates using the form below.

Use one or more criteria to define your search.

Refine your search by choosing SIC codes or Agreement Types. Multiple variables can be selected by holding down “Ctrl”

Use the powerful “Full Text Search” to find all similar agreements.

Easy to Select

Search Results are presented on a time-saving “Royalty Tableau”

Select some or all agreements for further analysis based on the summary information presented.

Save them to a Folder.

A license permits the downloading of 100 agreements.

Easy to Organize

Organize the agreements in folders for easy analysis.

Once in a folder they do not have to be downloaded again and are available for future searches.

Easy to Review & Analyze

Select individual agreements from your folder for detailed analysis or select them all by checking the box at the top of the tableau.

From the folder you can view, print, or save the selected license agreements, and produce online summary statistics and exploratory graphs of royalty rates. 

Each agreement has a summary “file card” giving key data for easy scanning

Full Documentation

Scanned and PDF versions of the original SEC Filing provide context for the license agreement. They can be printed or saved.

Full Documentation

Scanned and PDF versions of the original License Agreement They can be printed or saved.

Full Documentation

Instantly retrieve full royalty rate statistics.

Recalculations and “what ifs”can be done “on the fly” simply by changing the dataset.

Full Documentation

Frequency

Duration

Territory

Exclusivity

Test your results against 4 key variables:

Frequency, Duration, Territory and Exclusivity

Presented graphically and can be printed for presentation.

Full Documentation

Export your findings from any results page to MS Excel for further analysis, adjustments or customized presentation

No more re-entering data.

Full Documentation

•Print a PDF summary of each license agreement

RoyaltyStat delivers a complete documentation package consisting of:

Summary Statistics

Validity Tests

Summary of Each Agreement

Original License Agreement

Original SEC Filing

Full Documentation

Prepare detailed client invoices for inclusion in the client file.

RoyaltyStat

Transfer PricingFinding Comparables for Intangibles

For pricing or further information visithttp://www.technologytransfertactics.com/content/royaltystat/