Clarity
ROYALTIES MANAGEMENT
Clarity ROYALTIES MANAGEMENT Services
Flexible, tailored services that will help you improve the efficiency of your business and save you money
Russell Farmer
Founder of
Clarity ROYALTIES MANAGEMENT
I’m a qualified structural engineer, an experienced recruitment consultant and an ex-Licensee,
so how did I move into Royalties Management?
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I first entered the licensing industry working for a small company making Sat Nav celebrity voices. It was loads of fun; recording the voice of Homer Simpson in the Fox lot in LA, flying all over the US to meet the artists who voiced Darth Vader, Yoda, and other Star Wars favourites, and witnessing talent bring the voices of Bugs Bunny and Sylvester the Cat to life.
But it was also a serious business with debt and cash-flow to manage… and plenty of complex royalty agreements to navigate my way through.
The royalties spreadsheet I inherited totalled 16 cells so I knew immediately that the royalties weren’t being managed properly. They were submitted on time, but nowhere near enough attention was being paid to the calculations.
And that meant the business was at risk. Why? Because the owners thought that royalties were just an expense that needed to be paid.
Whilst royalties ARE an expense, they can be the biggest single cost to a business. In my situation, not only did the royalty calculations process needed an urgent review, but much more importantly the owners needed to understand the risks it presented to the business. Put simply, even though we were profitable, our business eventually folded because we failed to meet our Minimum Guarantees.
Although the experience was painful, it gave me the knowledge I needed to start working with other Licensees to help them avoid making the same mistakes.
I soon found out how much impact I could make when I attended a brand licensing exhibition presentation delivered by an auditor. During the Q&A, I asked the floor of about 200 attendees how many people were representing Licensees rather than Licensors……and there were none.
I realised the huge commercial benefits of royalty audits had been fully grasped by those conducting them, but I was astonished to find those paying the bill were nowhere to be seen. If licensees had been there, they would have heard how much licensors recover from them in audits.
Clarity ROYALTIES MANAGEMENT was born out of this desperately needed representation.
For nearly two decades I’ve worked with toy, game, and apparel licensees, I’ve managed countless audits, declared hundreds of millions of pounds of royalty declarations, and prepared hundreds of complex MG recoupement reports and royalty forecasts.
What’s more, I’ve only worked with Licensees in the Brand Licensing industry, which means you can be confident that I understand your licenses; I’ve most likely worked with the same Licensors before.
Book a call to find out how I can help you avoid costly mistakes, maximise the efficiency and accuracy of your reporting and minimise potential audit charges.
Brand Licensing
Considering entering the world of Brand Licensing?
Discover how royalties drive everything.
Finding Royalty Declarations demanding?
Recognise what factors can result in mistakes.
Concerned about the consequences of failing an audit?
Understand why preparation is key.
Clarity ROYALTIES MANAGEMENT
shares real life examples of common problems
and how you can solve them.
Profits or losses?
All your hard work and success could come to nothing, unless your Royalties are managed carefully
95%
of Licensees fail their royalty audits
12%
average recovery rate (excluding Audit Fee)
15 +
Years of Excellence
Royalty audit findings are above the minimum threshold nineteen times out of twenty which means the licensee pays for the audit.
Average recovery rates range from 12% upwards, but depending on the clauses in the agreement can be much higher
Clarity have been dealing exclusively with royalties, audits and the financial aspect of licensing agrement since 2008. Let the experts help you.
The benefits of Clarity
In-Depth Analysis
Alongside our accurate royalty declarations, we also give you rich management data on a bespoke dashboard. See the recoupment for each license, your top licenses, and your best performing properties so you can make the best brand licensing decisions for your business.
Compliance Focus
We are dedicated to delivering accurate and precise results. Your royalty declarations are made on time, every time, you're fully prepared for an audit and your relationship with your Licensor is positive and long lasting.
Efficiency in Process
We have developed innovative tools to make royalty declarations a smooth process, ensuring every element of each license is applied correctly, month after month, saving you time and effort on an ongoing basis.
Unmatched Expertise
With two decades of experience, we have encountered all the common errors as well as the more unusual mistakes and worked successfully with our clients to mitigate.
Client Testimonials
Clients from small businesses to multinational corporations trust Clarity ROYALTIES MANAGEMENTto deliver efficient, accurate royalty management and audit services, relying on us for the attention to detail so critical in this business. See what some of them have to say about our services:
Matt - the CEO of a US-based Toys and Homewares licensee who outsource their royalty reporting services to Clarity
Clarity Royalties Management Ltd. has been an invaluable partner for Underground Toys/Seven 20. We have worked with Russell and his team for 7 years. They have managed complex royalty schedules across all geographies through multiple contract revisions flawlessly.
With the Clarity team we do not have to worry about the accuracy, quality, or timeliness of our reporting. He seamlessly and thoroughly handled all our audits as well. They have our highest recommendation for any company working with licensors.
Robyn - the Licensing Director for a toy Licensee working with Clarity to prepare for their first audit:
Russell was an absolute hidden gem when working with him at Underground Toys. Responsible for preparing us and pre-auditing at a time in our growth cycle when we were under scrutiny from some big Licensors.
After our first meeting, I was confident that we were always going to be prepared.
Russ worked tirelessly, seemingly effortlessly and efficiently behind the scenes. Working with multiple departments and presenting our royalties and business in the best light possible without causing any dramas and saving us money in the process.
Russell is a professional, a pleasure to work with and I wouldn't hesitate to recommend him. I genuinely look forward to a time when we have the opportunity to work together again.
Chris - the CEO of a Licensee who manufactured digital voices for satellite navigation systems and used Clarity to manage their royalty declarations
We sell a range of digital licensed products in 60+ countries, in multiple currencies, via a range of different channels, all online or in-app. There is great complexity in our royalty submissions compounded by the quirks of having to manage and account for the sales of digital products differently for each of our seven licensor partners.
In providing royalties management support to us, Russell has shown himself adept at managing the complexity arising and he has successfully enabled us to make accurate declarations on time and in conformity with the vast array of contractual conditions we must meet.
We have definitely saved money using Russell’s services against, say, acquiring an expensive software application that would not have been tailored to our specific circumstances. Our business required a bespoke solution to ensure a cost-effective delivery of accurate reports to our licensors, which is exactly what Russell delivered.
Book a call to discuss how
Clarity ROYALTIES MANAGEMENT
can help you
Book an initial 30 – 60 mins no-obligation free call to discuss the scale and complexity of your business and your licenses and any forthcoming audits or license negotiations.
You will benefit from the opportunity to review your license operation in depth, which may highlight oversights you can put right yourself. Understanding your royalty declaration process end-to end ensures that I can build you a fully informed proposal that is tailored to meet your priorities.
All my services are flexible and designed for your specific circumstances, whether that is a one-off review of a draft audit report or an analysis of all your current licenses, a single license pre-audit report or regular royalty reporting services.
Once I’ve assessed your needs, I’ll provide you with a recommendation including an approximate duration, cost, and commencement date for each element of the work.
To book your call use the Contact Clarity form and suggest a date/time that suits you.