Intellectual property and contract compliance | KPMG | IN
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Intellectual property and contract compliance

Intellectual property and contract compliance

This service helps clients strengthen and monitor their contractual compliance needs.

This service helps clients strengthen and monitor their contractual compliance needs.

Every day, company bottom lines are impacted because vendors, distributors, and licensees fail to meet their full contract obligations.

Whatever circumstances - complex or inadequate contracts, key responsibilities neglected, or contracts failing to reflect changed circumstances– third parties can strongly influence company costs and revenues. One study estimates that as much as 70 per cent of all self reporting by business partners or customers is inaccurate. While under-reporting of revenues can be deliberate, in most cases it results from miscommunication, misunderstanding or poor contract administration.

KPMG can help strengthen and monitor your contractual compliance needs by providing key services such as:

  • Royalty compliance
  • License compliance
  • Contract/ Agreement compliance
  • Reseller and distributor reviews.

Our clients can gain from our extensive experience spanning several domestic as well as cross border cases across multiple industries and geographies and our methodology which relies heavily on technology for providing meaningful insights.

One of our latest offering is our proactive service to our clients to assist them in Software License Compliance and Software Asset Management called License Compliance Advisory. This service helps our clients to understand, detect and address issues related to Compliance and resulting Reputational Risk (and/or associated Financial / Legal Risks). It also helps in Saving money on their investment in software through better utilization by understanding and building appropriate Software Asset management practices.

We recently helped a medium sized Indian bank to establish and operate its software asset management policy in order to derive maximum benefit from its contract while remaining compliant with regulatory and other contractual obligations. Click case study to read more about case study.

Case Study
Our client, a medium-sized Indian bank, used over 1,500 computer licenses across its branch network comprising a mix of Windows, AIX and Linux operating systems, some of which were legacy systems identified for an upgrade. The network and software infrastructure was managed by a third party. KPMG Forensic assessed the existing license held by the bank and discovered issues resulting in non-compliance to the tune of at least INR 3.5 crore. These issues included disjointed asset tracking and monitoring across locations, presence of stale entries and multiple administrative user names and passwords, presence of malicious code and chances of using pirated software and lack of a Windows Domain structure.

We benchmarked our assessment to the ISO-19770-1 and ITIL industry standards, which helped the bank fine tune its current processes but also set in place corrective measures to overcome operational inefficiencies. This included:

  • Considering a centralized software asset management process for all branches which would allow tracking of software inventory and licensing information on a periodic basis
  • Taking corrective action for reducing and restricting the distribution of Software Media and license keys distributed over multiple locations
  • Setting in place a clearly defined process related to the retirement of software assets

These measures over time can have direct and indirect financial benefits including, smoother operations, elimination of waste and redundancy, potential savings and tax benefits, better control over information and the ability to forecast and estimate future license requirements.

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