CRM IPM Overview

CR2013 - Intellectual Property Management
OVERVIEW
India SAP CoE, Slide 1
Intellectual Property Management

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IPM Overview
IPM Overview
Intellectual Property Master Data

License Acquisition Contracts
Rights Availability Analysis
License Sales Contracts

Sales Confirmation
Incoming Royalties Billing
Outgoing Royalties Settlement
Challenges in IP Management
Stand alone systems with IP management in multiple
systems
Optimized utilization of the IP assets
Transparency of the IP availability across enterprise
Dynamism of the industry calls for new infrastructure,
capabilities and distribution channels
SAP IP Management Solution

Integrated, comprehensive and inter enterprise
solution
Manage rights inventory, stream line license revenues
and royalty payments
Provide better visibility of the intellectual property
across the enterprise
Create better opportunities to optimize utilization of IP
Reduce cost of acquisition and creation
IPM Overview
Acquisition Contract
Licensor
Service Provider
OR
IR
INTELLECTUAL PROPERTY
Inventory
Sales Contract
Licensee
IP Management process
SAP IPM solution supports the following functions
Rights management
Contract management
Settlement of incoming and outgoing royalties
Creation, acquisition and sales of rights

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IPM Overview
IPM Overview


Sales Confirmation
IPM Overview
IPM Overview


Sales Confirmation
What is Intellectual Property?

Intellectual Property
A broadcasting or a publishing company acquires rights
and services from rights holders and licensors to
produce and broadcast new programs or publish new
Sales Overview
intellectual properties (Products).
Intellectual Property Product

Hierarchy - Root
Category - Base
Sub Category - Movies, Books
Product Hierarchy
IP Set Types
Shipping
locations
Release
Restrictions
Language
Set Types
Release
Dates
Category
Rights
owned
Condition
Rights Inventory
Rights Owned Acquired or Created can be exclusive,

non-exclusive, co-exclusive
Release Dates Rights that have been released to be sold

Release Restrictions Rights that are restricted to be sold
Hierarchical Attributes
Are maintained using the nodes and sub nodes.

Market Electronic Media, Publication.
Territory Asia Pacific, North America
Language English, French .
Hierarchical attributes help in maintain Intellectual property
with Multi dimensional attributes
Rights & Royalty Dimensions

Rights and royalty dimensions define the usage of the
Intellectual properties
Some of the dimensions are
Market
Territory
Language
Shipping Data
Language in which Intellectual Property is maintained
Ship-from is the location from where the IP is shipped

Type of shipping for the IP related material
IP Relationships
IP relationships are
Part
Package Part
Underlying Component
Title
Physical Material
Business Partner
IPM Overview
IPM Overview


Sales Confirmation
License Acquisition Contract

The license acquisition contract represents agreements
that you make with various licensors about the type and
scope of rights and services they transfer which are
restricted by time and content
Acquisition Contract: Transaction type

Rights Acquisition Contract
Right acquisition contract describes the acquisition of rights to an IP
e.g. from the author of a novel, to produce a motion picture based on this
novel.
Service Acquisition Contract

Service acquisition contract describes the obligations of a service provider
such as an actor during the production (e.g. filming) of a movie.
The service provider has usually no rights to the IP here.
Acquisition Contracts: Minimal Example

Tab Page
Data to be maintained
General tab page (header level)
Licensor
Organization tab page (header

level)
Organizational data
General tab page (header level)
The IP that you want to acquire in the item list. Choose the item category which you
want to use to represent the license acquisition contract.
Rights or Service tab page

(header or item level)
The rights, such as market, territory and language, which you want to acquire.
Conditions tab page (item level)
Fixed license fees

The Conditions tab page that appears is dependent on the item category that you have
selected.
Price Agreements tab page

(header or item level)
Variable license agreements

The Price Agreements tab page that appears is dependent on the item category that
you have selected.
General tab page
Dates, such as the contract start and contract end, which are defined according to the
date profile
License Acquisition Contract
Partner
Function
s
Time
restriction
Product
details
Exclusive or
Co-Exclusive
Rights Group Maintenance

Rights Group maintenance facilitates simple entry of all combinations of several
markets, territories and languages.
Attributes Market, Territory

and Language can be entered
Price Agreements
Statistical
conditions
Payable
conditions
Condition type
Amount
Value
Sales volume
20 000
20 000
Advertis. costs
1500
1500
10%
1850
License fee
Basis
18 500
The percentage license fee is calculated on the basis of statistical conditions. In the example
above, this basis is equal to the revenue = sales volume advertising costs.
The statistical conditions obtain their value from confirmations from rights exploitation. The
acquisition contract therefore does not contain any conditions. These first appear in the
settlement document.
In the example above, 10% is charged on the entire revenue once the scale level is reached
($18 500 Revenues $1850 license fee).
A revenue-dependent license fee is a special example of an exploitation-dependent license

fee. In this case, exploitation can be measured by the number sold, audience figures or even
ideal success (number of Oscars for a film) instead of by revenue.
If no price agreements are recorded for a contract item, the price agreements for the higherlevel item apply (access sequence 1700).
Price agreements at header level are not possible in the acquisition contract.
Price Agreements vs. Conditions

Price agreements
Can be entered at item level
(not BRI)
Inherit rights item
Royalties item BRI
Percentage on the basis of
confirmed values (17PO)
Quantity-dependent on the
basis of confirmed values
(17QO)
First evaluated in the
settlement document
Direct entry of conditions

Can be entered at royalties
item level
No inheritance
Fixed fee (17FO)
Advance (17V1)
Minimum guarantee (17M1)
Independent of confirmations
Value is visible in contract
and settlement document
Settlement for Different Item Categories

Price Agreement
Item
Difference
BRI
Condition
Settlement
data collector
Item
Milestone
BRI
Basic values for pricing
Exploitation-dependent item with

difference calculation
Conditions are not determined
until settlement
Billing plan
Several royalties items for a higherlevel rights item
Rights
item
Royaltie
s
item
BRI
Exploitation-independent item with

direct condition entry
Single settlement (flat fee)
Milestone billing
Advances and minimum guarantees
Advance
Item
Status-Dependent Transfer to Settlement

Item
Item
Releas
e
Difference
BRI
Releas
e
Settlement following contract release

During straightforward settlement, the item must be released
Same for advances and minimum guarantees
BRI must be released for milestone billing and for difference
calculation.
Non-settlement-relevant item categories
Pure rights items
Royalties items with billing plan
Common acquisition contract scenarios

1: Fixed Royalties
2: Variable Royalties With Advance
3: Advance and Minimum Guarantee
4: Installment Payment (Milestone Billing)
5: Separate Rights and Royalties Items
Fixed Royalties
In this scenario the payments to be made to the licensor are
managed using a single fixed fee.
Use item category IEM1
(IPM acquisition rights and
royalties item)
Record the royalties amount with condition type 17FO (fixed license
fee OR) on the Conditions tab page at item level.
When the items are released and the contract is saved, the
transaction is transferred to billing.
Variable Royalties With Advance

These contract are exploitation-dependent and in which the licensor is
to be paid a repayable advance (usually at the contract start).
The advance is to be recouped against an exploitation-dependent license fee.

1. Maintain advance:
Use item category IEA3

(IPM acquisition repayable
advance)
Record the repayable advance of $10 000 with condition type 17V1
Create a final invoice item as a sub item for the refundable advance
payment item.
Choose the item category IEA4 (IPM Acquisitions Final Invoice Repayable
Advance) for the final invoice item
2.
Maintain rights and variable royalties:
Create an item with item category IEM2 (IPM acquisition rights and
royalties item with difference calculation)
Condition type 17VO (percentage license fee OR)
Use the Reference Item field in this item to record the main item
generated in step 1 as the reference item for the advance.
This places individual items in a relationship for the royalties calculation,

which enables the repayable advance to be recouped against the license
fee.
Advance and Minimum Guarantee
This type of contract guaranteed advances and minimum

guarantees in a dependent relationship with one another.
Advances and minimum guarantees are to be recouped against an

exploitation-dependent license fee.
Several advances and minimum guarantees can be combined as a

group, by creating one of these items as a main item and the others
as sub-items.
1.
Maintain advance:
Condition type 17V1 (advance OR)

2. Maintain minimum guarantee amount:
Condition type 17G1 (guaranteed license total OR)

3. Maintain rights and variable royalties:
Define price agreements within the item.
Installment Payment (Milestone Billing)

It is contract in which the payments to be made by the licensor are
managed using a fixed fee.
Billing of this fee is to take place for specific milestones.
These are specific points in time that you define.
Condition type 17FO (fixed license fee OR)
Separate Rights and Royalties Items

This type of contract contain different price agreements (royalties
records) for rights acquired collectively.
An exploitation-dependent calculation of royalties is to be
performed here.
and maintain the corresponding price agreements for sub-item 1
IPM Overview
IPM Overview

Sales Confirmation

IP, Exclusivity,
Period, Rights
dimensions
Rights Inventory
IP ID, Rights Owned,

Release dates, Release
Restrictions, Contracts,
Contract Items, Availability
Availability Tool Functionality

Select IPs
Select and Add
Refresh Availability button
Calculate Availability in the Background button
Save Query
Load Query
Manage Query
Selection Variant
Personal Settings
Personal Settings
User based definition of the Intellectual properties
availability analysis can be done by setting the default
parameters.
IP Selection
Based on the rights owned
Based on the release dates
Based on the release restrictions
Product relations
Tab pages on the Availability analysis
Personal Settings
Availability calculations with the type of Intellectual Property
Rights Owned
Rights In
Rights Out
Rights Avail
Rights Legally Avail
IPM Overview
IPM Overview

Sales Confirmation
IP Sales Scenario
Enquiry
IP Rights Availability
Analysis
No
Create IP, acquire

rights
Yes
Create IP Sales Contract
Sales Scenario
Sales Contract
Fixed Fees
Variable Fees
Sales Confirmation
Billing
Standard Functionalities
Date
Status
Text
Sales
Contract
Partner
Action
Organization
Condition
Group
License Sales Contract Doc Structure
Header Level
Item Level
Billing Request Item
Sales Contract Items

Main Items and Sub Items
Advances
Minimum Guarantee
Rights Items
Rights and Royalties Items

Royalties Items
Item Categories and characteristics

Item cat
Rights
Relevance
Clearing
relevance
Price
relevance
IVA1
Advance
IVG1
Guarantee
IVM1
IVM2
IVM3
IVR1
Difference
relevance
X
X
X
IVY1
IVY2
IVY3
IVB1
Billing
Plan
Confirmatio
n
X
X
X
Milestone
Milestone
License Price Agreements
Conditions
Advances, Minimum Guarantees and Fixed fees
Price Agreements
Usage based fees Percentage or Quantity dependent
Billing Plans
Milestone billing plan
Periodic billing where the billing due list are
generated as per the settlement periods
Confirmation billing plan

Usage based billing where the billing due list are
generated on confirmation of the rights usage
Revenue distribution billing plan

Billing plan where the revenue is distributed as per
the rights dimension distribution
Billing Request Items

Header Level
Item Level
Billing Request level
IPM Overview
IPM Overview


Sales Confirmation
Confirmation Overview
Usage based data
Sales Contract
Confirmation
Periodic Settlement
Incoming Royalties
Document Flow
Sales Contract
Royalty Item
Document Flow
BRI
Confirmation Item
Confirmation
Customer Usage Data
Confirmation Item
Confirmation Sub Item
Confirmation Values
Condition Type
Pricing Proc
Item Level
Header level
Data Values
Data Value Profile
IPM Overview
IPM Overview


Sales Confirmation
Billing
Incoming Royalty Billing
Outgoing Royalty Settlement
Incoming Royalty Billing

You have made agreements for the transfer of rights
against fixed or variable fees in license sales contracts.
You now want to bill your licensees for the relevant
dates and in some cases on the basis of confirmations
of license revenues from the licensee. The system is to
take account of any advances and minimum
guarantees required here.
Usage-dependent royalties with

difference calculation
Royalties are agreed in the contract with the licensee. These are dependent
on the exploitation success confirmed of the IP transferred (e.g.. 20 % from
net revenue, 1 $ for each unit sold).
The royalties condition amount can be scaled, where the scale base value
may refer to the entire contract validity period and not only to a single
confirmation period.
Difference calculation is used to include these scale conditions during billing.
This means that each billing document replaces its predecessor and the
invoice total only contains the difference from the previous period.
Royalties Item in the Sales Contract

Rights
Billing
Price agreements as scale
Status
Conditions
Status of BRI #1 before and after

confirmation
Confirmation for Royalties Item (BRI1)
Status
Conditions
Status of BRI #2 before and after

confirmation
Confirmation for Royalties Item (BRI2)
Billing With Difference Calculation

Billing due list for the first three BRIs
Corrective Effect of Difference Calculation

Status after billing of BRI #1:
A total of 10% from
( 700 000 60 000 = ) 640 000
64 000 was billed.
For the situation at this point, 10% is the correct percentage rate
according to the price agreement.
Status after billing of BRI #2:

A total of 12% from
( 1 200 000 130 000 = ) 1 070 000
128 400 was billed.
For the situation at this point, 12% is the correct percentage rate
according to the price agreement.
The billing document for BRI #1 is subsequently invalidated by the

scale jump and must usually be reversed. The difference calculation
corrects this error automatically.
Update Contract from Billing

After billing of BRI #1
Document flow
Status of BRI
Billed quantity / billed value of BRI
PP billed quantity
and value are set
Update Contract from Billing

After billing of BRI #2
Document flow
Status of BRI
as before
Billed quantity / billed value of BRI
PP billed quantity
and value are
retained
BRI #1
BRI #2
NEW not yet

shown here:
PP billed quantity
and value are set
IPM Overview
IPM Overview


Sales Confirmation

You have agreed fixed or variable fees in license
acquisition contracts for rights acquisition. Revenues
have been achieved for the sale of rights or products.
Settlement is now to be performed using the
agreements in the license acquisition contracts on the
basis of these revenues. The system is to take account
of any advances and minimum guarantees required
here.
Incoming and Outgoing Royalties Overview

Debit-side
Credit side
IR settlement
IPMI
OR settlement
IPMO
(IR) sales
contracts
(OR) acquisition
contracts
Confirmations
External data
product sale
The settlement data collector contains two types of lines: Raw

lines and derived lines.
Business
transactions
Raw lines
Settlement
data collector
Derived lines
Acquisition
contract
OR
settlement
Raw lines are reported to the

settlement data collector
from external sources.
They describe business
transactions that are relevant
to royalties.
Derived lines are generated
internally from the raw lines.
Derived lines reference an
acquisition contract item.
They create the settlement
due list.
Key Fields in the Settlement Data Collector:

1.
Business transaction that is relevant to outgoing royalties
2.
OR key, which represents the content restriction of an IP right, such a IP

product, market etc.The OR key is made up of the IP product and
customer-specific attributes.
3.
Key values are taken from the Rights tab page for a royalties item
They are distributed if entries are available on the Distribution tab page.
Settlement date or period: This defines the time period for the IP right
exploited.
Data values can be available as ITD (Inception till date) or PP (Per period)
values.
ITD values from pricing in the sales contract.

PP values from billing documents with incoming royalties.
External data (product sales) are PP values.
Confirmations contain ITD or PP values.
These 3 key fields create the key for a raw line in the settlement data
collector.
Outgoing Royalties Settlement: Data Flow

IPM Sales
IPM Acquisition
IPM contract
Incoming
royalties
Billing
document
Confirmation
documents
Acquisition
contract
settlement
periods
Transfer to
billing due
list
Billed revenues
Gross revenues, number of units
CO
External data
Production costs
FI
Product
sale
Paid / recognized
revenue
Number sold
Order value
Outgoing royalties settlement
Settlement
data
collector
DPL
Cumulation
BEA
Billing
due list
Outgoing
royalties
settlement
document
DL
BD

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Assign Hierarchy to product type

IMG Cross Application Components SAP Product Product Category
Assign Category hierarchies to applications
Hierarchy ID mapped to the
product type
Rights and Royalty Dimensions

IMG Customer Relation Management Industry Specific Solutions Media Rights and
royalties dimensions Define rights and royalties dimensions
Rights dimensions
Languages for IP Names

IMG Customer Relation Management Industry Specific Solutions Media
Intellectual property Master Data Product Settings for IP shipping Define
Languages for IP Names or IP Content
IP Language
Shipping Location
Ship-From Locations
Shipping location
Shipping Types
Shipping types
Type of Shipping

Intellectual property Rights availability analysis Define attributes to be used in
finding the intellectual properties
Check if required the
hierarchical attribute
Attributes for searching the

Intellectual properties
Transaction types
IMG Customer Relation Management Transactions Basic settings
Define Transaction Types
Sales contract transaction and
Sales confirmation transaction
IP Sales - Item Categories

IMG Customer Relation Management Transactions Basic settings
Define Item Categories
Item Category Determination

IMG Customer Relation Management Transactions Basic settings Define
Item Category determination
Settings for IPM Sales Item Cat

Transactions Settings for IPM Transactions Define settings for IPM Item categories
Billing Plan
IMG Customer Relation Management Industry Specific Solutions Media Billing and
Settlement Define billing types for IPM License Settlement
Pricing Procedure
to which the billing
plan is assigned
Billing Item Categories for Sales

IMG Customer Relation Management Industry Specific Solutions Media Billing and
Settlement Define billing types for IPM License Settlement

IMG Customer Relation Management Transactions Basic settings Define Transaction Types
It determines which
condition types are used
for the pricing agreements
Assignment of Business Transaction Category
Acquisition scenarios must be represented using sales scenarios

in the IPM scenario
Customizing at header level
Entries in this field are only

used in the IC WebClient
Define Item Category

IMG Customer Relation Management Transactions Basic settings Define Item Category
Customizing at Item Level
Price determination is
activated for each item
category using this indicator
Billing Relevance: Not Relevance for billing, Transaction related billing, External Billing etc.
Item Category Determination

IMG Customer Relationship Management Industry Specific Solution Media
Intellectual Property Management Billing and Settlement Item Category
Determination Assign Item Category
Item category determined

on following factors:
Transaction type
Item category group
Item category for higher-level item
Item category usage
Determination of BE Item Category
Settings for IPM Item category

IMG Customer Relationship Management Industry Specific Solution Media
Intellectual Property Management Transactions Settings for IPM Item
category
Rights relevance
Define Billing type for IPM License Settlement

IMG Customer Relationship Management Industry Specific Solution
Media Intellectual Property Management Billing and Settlement Define
Billing type for IPM License Settlement
Assign the billing plan to Transaction type

IMG Customer Relationship Management Transaction Basic Settings
Billing Plan Assign the billing plan to Transaction type
Customizing Setting for Revenue

Recognition Category
Customer Relationship Management Industry-Specific Solutions Media

Intellectual Property Management Transactions Settings for IPM Transactions
Settings for Revenue Recognition Maintain Revenue Recognition Category

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IP Product Master
Assign Hierarchy to product type
Define rights and royalties dimensions
Define languages for IP Names
Define Ship-From Locations
Define Shipping types
Transactions
Assignment of Business Transaction Category
Customizing at Item Level
Define Item Category determination
Define settings for IPM Item categories
Assign Item Category
Billing
Define billing types for IPM License Settlement
Assign the billing plan to Transaction type
Billing type Customization
Determination of BE Item Category
Customizing Setting for Revenue Recognition

Category

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Creation of IP product Maintain Sales Organization,
rice, Unit of measurement, rights and royalty
dimensions
Creation of Acquisition and Sales Contracts Maintain
rights and royalty dimensions, status of the contract
and items should be released
Usage confirmation only billing request items can be
confirmed. The contract should have the released
status for confirmations list to get displayed.
Billing due list for the confirmed items

CRM IPM Overview

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CR2013 - Intellectual Property Management

India SAP CoE, Slide 1

Intellectual Property Management

Intellectual Property Management

Intellectual Property Master Data

License Sales Contracts

India SAP CoE, Slide 4

India SAP CoE, Slide 5

SAP IP Management Solution

India SAP CoE, Slide 6

India SAP CoE, Slide 7

India SAP CoE, Slide 8

Intellectual Property Management

Intellectual Property Master Data

License Sales Contracts

India SAP CoE, Slide 10

Intellectual Property Master Data

License Sales Contracts

India SAP CoE, Slide 11

What is Intellectual Property?

India SAP CoE, Slide 12

Intellectual Property Product

Sub Category - Movies, Books

India SAP CoE, Slide 13

India SAP CoE, Slide 14

India SAP CoE, Slide 15

Rights Owned Acquired or Created can be exclusive,

Release Dates Rights that have been released to be sold

India SAP CoE, Slide 16

Are maintained using the nodes and sub nodes.

India SAP CoE, Slide 17

Rights & Royalty Dimensions

India SAP CoE, Slide 18

Language in which Intellectual Property is maintained

Ship-from is the location from where the IP is shipped

India SAP CoE, Slide 19

India SAP CoE, Slide 20

Intellectual Property Master Data

License Sales Contracts

India SAP CoE, Slide 21

License Acquisition Contract

India SAP CoE, Slide 22

Acquisition Contract: Transaction type

Service Acquisition Contract

India SAP CoE, Slide 23

Acquisition Contracts: Minimal Example

General tab page (header level)

Organization tab page (header

General tab page (header level)

Rights or Service tab page

Conditions tab page (item level)

Fixed license fees

Price Agreements tab page

Variable license agreements

General tab page

India SAP CoE, Slide 24

License Acquisition Contract

India SAP CoE, Slide 25

Rights Group Maintenance

Attributes Market, Territory

India SAP CoE, Slide 26

A revenue-dependent license fee is a special example of an exploitation-dependent license

India SAP CoE, Slide 27

Price Agreements vs. Conditions