The Dark Side of Licensing: How to Prepare for the Audit

The audit clause itself is not something to be feared. It is a necessary means for the licensor to protect its interests and to guard against unscrupulous licensees. But it is a mistake to think that the clause is there solely to prevent malfeasance.

11 minute read February 01, 2021 at 03:24 AM
By
David Schnider
The Dark Side of Licensing: How to Prepare for the Audit

In the classic movie When Harry Met Sally, Harry says, "When I buy a new book, I always read the last page first. That way, in case I die before I finish, I know how it ends.

This premium content is locked for The Intellectual Property Strategist subscribers only

ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN The Intellectual Property Strategist

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

Already have an account? Sign In Now

For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.

NOT FOR REPRINT

© 2026 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Continue Reading

Agentic AI introduces risks that are novel and complex, but the most effective response is a familiar one. Zero Trust answers the problem of when an AI agent misfires on its own by constraining what an agent can do rather than betting on how it will behave.

July 31, 2026

The outsourcing of office and administrative services is expected to grow 50%-60% in the next five years. Contrary to what decision-makers think, and what the service providers hope you think, the biggest risk in outsourcing isn't choosing the wrong provider. It's outsourcing the wrong process, under the wrong model, with the wrong performance measures and contract terms.

July 31, 2026