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VIC Reducing Royalties by subsidising shipping

Discussion in 'Commercial Law Forum' started by GD_Smith, 13 February 2018.

  1. GD_Smith

    GD_Smith Member

    13 February 2018
    Likes Received:
    Hi, I'm receiving net sales royalties for product I created and sold to a publishing company. The licensee owns the publishing company but also owns the shipping company that ships the product. He is subsidising shipping by cutting into the list price of the product. For example a products listed to the consumer at $15 with $4 shipping and he's claiming that shipping is actually $7 and only paying me my 10% royalty from the $12 and not the $15. I'm afraid he can just make up any figure he likes and reduce our royalty. Is this legal? Is there a way to stop this happening as I'm losing quite a lot of money.
  2. Rob Legat - SBPL

    LawTap Verified Lawyer

    16 February 2017
    Likes Received:
    I suspect this will come down to the wording of your contract, and whether their actions are in keeping with the terms of the arrangement. However, if they are reporting one thing and doing another then that’s an indication that something untoward is going on.
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