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Survey Shows Massive Royalty Underreporting

Law360 (March 27, 2006, 12:00 AM EST) -- The vast majority of patent licensing agreements lead to underreported royalties worth billions of dollars, a survey of royalty streams conducted by a data research group has shown. According to the researchers, pinpointing the problem early could save a lot of time and money wasted on litigation.

The study, by Maryland-based IP management firm Invotex Group, showed that a staggering 88% of licenses have underreported royalties. With annual IP licensing revenue in the United States estimated at more than $120 billion, unrealized revenue from the agreements...
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