Royalty Stat Transfer Pricing Finding Comparables for Intangibles

Royalty. Stat Transfer Pricing Finding Comparables for Intangibles Click to advance slides

What is Royalty. Stat? Ø Royalty. Stat 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. Ø contains a database of royalty rates and license agreements accompanied by software that analyses validates and fully documents royalty rate data

What is Royalty. Stat? The Royalty. Stat Difference Reliable rate data + Full original documentation= Comparables that withstand audit and litigation

The Royalty. Stat Difference Ø 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 Royalty. Stat Difference Ø 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 Royalty. Stat 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 Royalty. Stat Difference Ø Reliability of rate data – Over 32, 000 license agreements contained in SEC databases were reviewed by Royalty. Stat 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 Royalty. Stat Difference Ø 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 Royalty. Stat Difference Ø 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 Royalty. Stat Difference Ø 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 Ø Ø 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 powerful “Full Text Search” to Use one or more criteria to 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 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 From the folder you can view, print, or save the selected license Select individual agreements, and produce agreements from your online summary statistics folder for detailed and exploratory graphs of analysis or select royalty rates. them all by checking the box at the top of the tableau. 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 Royalty. Stat delivers a complete • Print a PDF summary of documentation package consisting of: each 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.

Royalty. Stat Transfer Pricing Finding Comparables for Intangibles For pricing or further information visit http: //www. technologytransfertactics. com/content/royaltystat/