Underreported Royalties Could Lead To SOX Problems

Law360, New York (March 27, 2006, 12:00 AM EST) -- Four years after the passage of the Sarbanes-Oxley Act, which requires executives to sign off on corporate financial data, many companies are still inadvertently underreporting the value of their intellectual property royalties, according to a survey of royalty streams conducted by a data research group.

The study showed a vast majority of patent licensing agreements lead to underreported royalties worth billions of dollars. According to the researchers, pinpointing the problem early could save a lot of time and money by avoiding litigation and keeping regulators at...
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