Small Firms Face Royalty Leakage And Portfolio Woes

Law360, New York (July 28, 2006, 12:00 AM EDT) -- More than one third of small high-tech companies surveyed in 2005 failed to receive all revenue due from their licensing agreements during the past year, according to a recent report.

The findings, in a licensing competitiveness study by PricewaterhouseCoopers LLC, revealed that about 40% of companies that experienced the loss estimated the so-called “licensing revenue leakage” at up to 20%.

Such leaks could hurt profits for companies that are struggling to enter crowded markets. However, the large companies that dominate the U.S. technology sector are at...
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