RoyaltyStat
Transfer Pricing
Finding Comparables for Intangibles
Click to advance slides
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
Refine your search by choosing SIC
codes
or Agreement
Types. Multiple
Search the
database
of over 6000
variables
can be selected by holding
agreements
for comparable
down
“Ctrl”
royalty rates
using
the form below.
Use
the criteria
powerful
Text Search” to
Use one or
more
to “Full
define
find all similar agreements.
your search.
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
Territory
Frequency
Test your results against 4
key variables:
Frequency, Duration,
Territory and Exclusivity
Presented graphically and
Duration can be printed for
presentation.
Exclusivity
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
RoyaltyStat delivers a complete •Print a PDF summary of
documentation package consisting
each
of: license agreement
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 Pricing
Finding Comparables for Intangibles
For pricing or further information visit
http://www.technologytransfertactics.com/content/royaltystat/