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Object documentationRoyalties Scope

 

A royalties scope is a combination of one or more defined rights groups that share the same validity. A royalties scope has a description to explain the corresponding royalties.

 

When you create a contract, you typically define a rights and royalties scope, where you define the rights that are acquired or sold and the royalties that are to be paid. In some cases however, you might need to split the rights information and royalties information into individual scopes. This occurs, for example, when you specify different royalties values in a contract, for different types of IP exploitation.

A pure royalties scope in a license acquisition or license sales contract defines the license fees that are to be paid for the ownership or exploitation of intellectual property rights. By itself, a pure royalties scope has no impact on the rights acquired or sold; it is only royalties-relevant.

Structure

A royalties scope can include the following information:

  • Contract item category and number

  • Scale retroactivity

  • Status

  • Revision group (for sales contracts only)

  • Revision due date (for sales contracts only)

  • Description

  • Validity period (Valid From and Valid To dates)

  • One or more rights groups defining the royalties attributes to which the license fee applies

  • Royalties rate (flat fee or usage-based royalties agreement)

  • One or more installments (only for flat fees and installments)

  • Royalties attributes, such as

    • Account assignment

    • Terms of payment

    • Pricing procedure for billing (for acquisition contracts only)

    • Data values profile for usage confirmation data (for sales contracts only)

    • Revenue recognition start (for sales contracts only)

  • Advance reference(s) to associate an advance group(s) with a usage-based (variable royalties) item

  • The rights scopes that are linked to the royalties scope

You cannot include information about exclusivity, options, and the number of transmissions in a royalties scope.

Integration

The system transfers the royalties information you enter here to the SAP Billing component.

Example

You create a license acquisition contract in which you acquire the rights to broadcast a move for the German-language pay TV market in the territories Germany and Austria. You define this information in a rights scope.

You agree to pay a royalty of EUR 5,000 for the German broadcast rights and a royalty of EUR 6,000 for the Austrian broadcast rights.

You cannot maintain a rights and royalties scope, because there are two different royalties to pay. Therefore you maintain two royalties scopes – one for each royalty you need to pay. You associate both royalties scopes with the rights scope you previously defined.