Brattle Senior Consultant Laurence Freed, Principal Steven Herscovici, and Senior Associate Christine Polek have coauthored a Law360 article that explains how international transfer pricing methods can be used to evaluate TV licensing fees. The article, “New Ways To Approach Negotiating TV License Fees,” suggests potential solutions when TV licensing fees cannot be agreed upon through a more typical arms-length negotiation.
The value of TV licensing fees is often called into question when the studio that owns the rights to the show and the distribution network that distributes the show are part of the same corporate entity. For instance, Netflix allows its own original content to be streamed on Netflix. To evaluate TV licensing fees’ fair value, transfer pricing methods that rely on benchmarking analyses may be a helpful tool in legal disputes – or even to avoid such disputes in the first place if applied when contracts are written.
The full article, “New Ways To Approach Negotiating TV License Fees,” can be found below.