Contract Management lets you create, edit, and view contract term sheets. It also lets you generate and review detailed reports on existing contracts. Contracts form the basis of your business relationship with a licensee company. A contract identifies the products, territories, and distribution channels available, and specifies sales reporting requirements and royalty data. Contract Management integrates contractual details within the functionality of the other BRMS modules and thus has a direct influence on reporting requirements and on the product tree. For example, in the Sales Reporting module, a licensee can only report sales data for items they are licensed to sell.
Contracts are created using a template that is configured with specific fields that reflect the business requirements of the licensor. When the contract is complete, it can be saved and printed as a Microsoft Word document.
Contract Management stores all contractual information. The data is entered through a generic, modifiable template that contains standard items as well as additional, licensor-specific information. All contract information entered by the licensor about products, royalties, etc. is integrated within the functionality of BRMS and is available to other modules.
You can create a new contract for any licensee companies and define the details based on the products, territories, and distribution channels in your data trees. You can also edit and view the details of an existing contract. Your licensee companies and their current contracts are displayed in a tree-type hierarchy, and you simply select the contract for edit or view. When you select the contract for editing, the details are displayed in full and available for revision. The data tree items that constitute the basis of the contract are highlighted in the data tree and the contract fields display the current term data.
Contracts are created by entering contract data into existing contract and saving it under a new name or by using a new contract template. New or renewed contracts can be created from existing contracts. You simply populate the new contract with data from the old contract. Contracts can be viewed and modified by licensors; contracts can only be viewed by licensees.
Contracts may exist in a variety of states depending on the stage in the development process. For example, old or expired contracts may be archived for eventual re-use. A licensor can manage and change contract status. Contract status determines what edits, if any, can be made to the contract. During contract creation, a royalty rate table and query functions help to determine royalty rates. Royalty rates are computed as a function of contract terms and conditions. This computation populates the royalty rate field during contract editing and serves as a baseline for the actual data in the contract. Royalty rates can be tied (via dependencies) to territories, product categories, distribution channels, time periods, and royalty tiers.
BRMS tracks and reports all potential conflicts. Territory conflicts and licensee performance statistics can be checked through query functions. Territory conflict checking determines what field selections are available during contract development. Contract Management also determines what type of control and data a licensee has available through the Sales Reporting module. A licensee can only report and update data for which they have a current license. Contract Management is closely integrated with Product Approval and Sales Reporting to facilitate contract compliance by automating the enforcement of the term sheets.
You use these tasks to Edit and View the details of an existing contract. Your licensee companies and their current contracts are displayed in a tree hierarchy and you simply select the contract for edit or view. In the data tree, the items that constitute the basis of the contract are highlighted, and the contract fields display current term data. The Edit page also lets you selectively edit the royalty tiers, time periods, and royalty rates that determine the selectable parameters for creating the contract. In View mode, the contract information is read-only.