Presentation on theme: "Transfer Pricing Finding Comparables for Intangibles"— Presentation transcript:
1Transfer Pricing Finding Comparables for Intangibles RoyaltyStatTransfer Pricing Finding Comparables for IntangiblesClick to advance slides
2What 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
3The RoyaltyStat Difference What is RoyaltyStat?The RoyaltyStat DifferenceReliable rate data + Full original documentation=Comparables that withstand audit and litigation
4The 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
5The RoyaltyStat Difference Reliability of rate dataBased on original license agreement data from SEC filing databasesNo use of data sourced from trade press, press releases, and unsupported SEC filingsEvery license agreement in RoyaltyStat contains at least one numerical (non-redacted) royalty rate or license feeThe highest among tiered royalty rates is reported.The database is updated every business day.
6The RoyaltyStat Difference Reliability of rate dataOver 32,000 license agreements contained in SEC databases were reviewed by RoyaltyStat editorsOnly those with un-redacted rate data were included in the database – approximately 6000Updated dailyHighest numerical rate used in analysisEach license agreement was carefully analyzed for content: Licensor, Licensee, Type of agreement (15), Territory, Exclusivity, Lump sum payments
7The RoyaltyStat Difference Documentation to support “full contractual disclosure”Every royalty rate in the database has an original license agreement to support itLicense agreements in scanned and PDF formatAll supporting SEC filings in scanned and PDF formatDescription pages in PDF format for each agreementPrintable charts for validity testing on:Frequency, Duration, Territory, Exclusivity
8The RoyaltyStat Difference Powerful menu driven database searchingSearch by intangible property, licensor, licensee, SEC filing date, agreement type, SIC codes, effective dateFull text search for additional inquiryRoyalty Tableau present key data field for selection of comparables
9The RoyaltyStat Difference Full economic analysisSummary rate statistics include: Maximum, Minimum, Median, Average, QuartilesStatistics 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 datasetAll results can be exported to Excel for further analysis, adjustments and presentationValidity testing for Frequency, Duration, Territory, Exclusivity
11Easy to SearchRefine 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.Search the database of over 6000 agreements for comparable royalty rates using the form below.Use one or more criteria to define your search.
12Easy to SelectSearch 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.
13Easy 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.
14Easy to Review & Analyze From the folder you can view, print, or save the selected license agreements, and produce online summary statistics and exploratory graphs of royalty rates. Select individual agreements from your folder for detailed analysis or select 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
15Full DocumentationScanned and PDF versions of the original SEC Filing provide context for the license agreement. They can be printed or saved.
16Full DocumentationScanned and PDF versions of the original License Agreement They can be printed or saved.
17Full Documentation Instantly retrieve full royalty rate statistics. Recalculations and “what ifs”can be done “on the fly” simply by changing the dataset.
18Full Documentation Test your results against 4 key variables: TerritoryFrequencyTest your results against 4 key variables:Frequency, Duration, Territory and ExclusivityPresented graphically and can be printed for presentation.DurationExclusivity
19Full DocumentationExport your findings from any results page to MS Excel for further analysis, adjustments or customized presentationNo more re-entering data.
20Full DocumentationRoyaltyStat delivers a complete documentation package consisting of:Summary StatisticsValidity TestsSummary of Each AgreementOriginal License AgreementOriginal SEC FilingPrint a PDF summary of each license agreement
21Full DocumentationPrepare detailed client invoices for inclusion in the client file.
22RoyaltyStat For pricing or further information visit Transfer Pricing Finding Comparables for IntangiblesFor pricing or further information visit