Josh Finfrock, Manager in our Transfer Pricing division, gives insight into the best providers for your license, royalty or contractual data in part 1 of this 3-part blog series.
Companies, attorneys and consultants regularly seek the best source for performing searches and analysis involving license, royalty or other contractual arrangements. This data is key to making business decisions, helping benchmark, value or document royalty rates, fees or certain terms involved in these agreements. If companies, attorneys or consultants lack internal contracts they perform searches to identify external agreements between unrelated market participants for their own application. Usually these "examples" are applied in various business planning, transfer pricing, valuation or litigation support analyses. In the U.S., many providers are available to provide various levels of data access and/or analysis for varying fees.
The following three sources may be considered for identifying relevant license, royalty or contractual data:
1. Legal Research Companies
These sources offer screening tools, typically based on "boolean" search logic, to search through available public company filings for exhibits, annexes or appendices that may contain relevant license, royalty or contractual agreements.
2. Royalty Agreement Database Companies
Offering various levels of pre-screened and summarized content sourced from public filings or journal articles, Royalty Agreement Database Companies sell varying scopes of data access to summaries of publicly available data.
3. Proprietary Databases
Developed by CPA, Law or Valuation firms, proprietary databases leverage collections of contracts and agreements assimilated from prior analyses. They are not accessible for a fixed fee as they are typically tied with professional service fees for analysis and/or documentation.
Trying to decipher between sources? Learn about the advantages and disadvantages to all 3 in our next blog post on license, royalty and contract searches.