A royalty is a payment made by one party (the “licensee”) to another that owns a particular asset (the “licensor”) for the right to ongoing use of that asset.
In many types of litigation, the value of a royalty stream is often required to be assessed.
Rushmore Group provides expert valuation reports for Courts and Tribunals in Australia in relation to the valuation of royalty income and in particular:
- The valuation of mining royalties
- The valuation of book royalties; and
- The valuation of royalties from music.
Examples of decisions in the Family Court in relation to royalties include:
In Pope & Pope  FamCA 204, the Court examined:
- The Valuation of royalty income from music
- Whether future royalty income is property or financial resource?
The valuation of royalty income has also be considered in:
- G & T  FamCA 613 (31 July 2002) (Music royalties)
- White & White  FamCA 400 (17 April 2007) (Mining Royalties)
The valuation of royalties requires significant expertise at assessing the future level of cashflows expected to be received together with an appropriate discount rate.