Financial Elements of Contracts

Sidney Blum, CPA, CFE, CrFA, CFF, DAFBA, FACFEI, CPEA is currently the Head of Audit at Beats Electronics, LLC (aka: Beats By Dr. Dre) in Santa Monica, California. He is one of America's leading royalty auditors, having represented leading licensors in a vast number of industries such as high technology, biotechnology, media & entertainment, toys, apparel, software, digital distribution, team sports, consumer products, medical devices, oil & gas, and aerospace. Mr. Blum has gathered his skills by auditing the following types of self-reporting contracts: construction, most favored nation, residual, participation, joint venture, advertising, service, time & material, cost-plus, distribution and digital distribution. He also performs expert witness testimony and is a frequent lecturer on royalty auditing. Sidney Blum wrote the royalty audit methodology for two of the Big 4 Accounting firms where he was a partner for approximately five years. In addition to working at the Big 4, he has seven years of industry experience as an internal auditor, split between Fortune 50 oil and gas companies and entertainment.

INTRODUCTION; AN OVERVIEW OF SELF-REPORTING CONTRACTS; WHY YOU NEED TO MONITOR SELF-REPORTING CONTRACTEES; TYPES OF SELF-REPORTING CONTRACTS & REPORTING RISKS; ROLES IN 3RD PARTY MONITORING; JUSTIFICATION AND IMPLEMENTATION OF A CONTRACT MONITORING PROGRAM ("CMP"); WRITING THE CONTRACT: TERMS AND CONDITIONS; BEST PRACTICES FOR A LICENSEE; APPENDIX I. SAMPLE LICENSE AGREEMENT; APPENDIX II. REGISTRATION OF MANUFACTURER; APPENDIX III. ROYALTY STATEMENT; APPENDIX IV. SETTLEMENT LETTER (CALIFORNIA); APPENDIX V. NON-DISCLOSURE AGREEMENT; APPENDIX VI - THIRD PARTY RISK RANKING MATRIX; APPENDIX VII - NOTIFICATION OF A THIRD PARTY AUDIT PROGRAM; APPENDIX VIII - NOTIFICATION OF AN AUDIT; ABOUT THE AUTHOR