Intellectual Property Infringement & Royalty Fraud

We conduct detailed financial due diligence to provides business valuations and advice for multi-jurisdiction merger and acquisitions in the private sector.

Intellectual Property Infringement & Royalty Fraud

Intellectual Property Infringement & Royalty Fraud can have untold impacts on a company’s revenues and profits, and in the worse-case scenario result in the founding of new competitors undermining a company’s USP.

We have experience in both multi-jurisdictional investigations, supported by our international team of corporate investigators; and discreet and covert investigations into alleged rogue company officers and employees.

Case examples of our work

Assignment 1: Intellectual property infringement

A US based media company asked us to review the accounting records of a distributor in the Far East. We identified infringements in respect of the timing of payments, disclosure, and distribution agreements, in addition to understated royalties. The distributor was forced to undergo a thorough remediation process to retain the rights to distribute.

Assignment 2: Under-reported royalty fraud

The Dutch entity of a multinational electronics company, asked us to carry out a forensic audit of the royalties declared by a licensee operating in Thailand and China. We undertook a review of the production and sales records of the licensee, and identified royalties had been significantly, and deliberately, understated by more than $250k.

Assignment 3: Intellectual property theft

A subsidiary of a NYSE listed company, wanted to assess the value of intellectual property infringement in Shanghai. We undertook covert investigations to identify counterfeit producers and sellers in Shanghai and provided a financial model reporting the potential impact on revenue to the client.

Advice on intellectual property infringement and royalty fraud

Opus has vast experience in investigating and assessing IP infringement. If you would like to speak to Opus about our services, please contact our Partner, Nicholas Parton.

Shareholder dispute requires independent valuation

“My client was involved in a shareholder dispute in the online ticketing industry and needed a valuation prepared in order to inform its settlement decisions ahead of a without prejudice meeting, and to provide us with ammunition to use during negotiations. Nicholas responded quickly to the brief and let us have a number of options as to how to approach the valuation. As a result of that we asked Nicholas to prepare two valuations at different points in time in order to effectively demonstrate both (1) the losses that our client had suffered as a result of the counterparty’s conduct; and (2) the current valuation of the company. Nicholas prepared the report on time and on budget. He clearly explained the basis of his valuations so that we were able to put across persuasive points during the negotiations, and he was on hand to assist us when new facts arose during the negotiations. The matter successfully settled some time after the initial without prejudice meeting, and I would not hesitate to use him again in the future”