We handle everything related to billing for successfully enforced claims. Both you and the infringing party will receive all necessary documents. Which documents you receive and which tax rates apply depend on three factors:
Is it a license payment or a compensation payment?
Are you a private individual or a business?
In which country are you domiciled?
License Payments
For post-licenses, we sell a limited license to the infringing party and bill them. We then settle this with you via a credit note, which corresponds to an invoice you would have issued to us for a license.
The invoice allows us to sell a license to the infringing party. Therefore, your credit note shows an unlimited license, while the infringing party only receives a limited license.
The credit note amounts to 55% of the license fee paid by the infringer. We retain the remaining 45% as a success-based commission, as stated in our terms.
VAT rules:
Private individuals: No VAT on the credit note.
Businesses: VAT depends on the country in which you are domiciled.
Country / Type | VAT |
Germany | 7% |
Germany + “Kleinunternehmer” | No VAT |
Businesses within EU | No VAT (Reverse Charge) |
Non-EU countries | No VAT |
Private entity | No VAT |
Compensation Payments
Compensation payments are handled separately from license fees.
If the infringer pays compensation, you will receive the full amount. You will get a payment notification labeled “Payout of Compensation.”
Compensation payments are not subject to VAT in Germany.
We also invoice our success-based commission at the same time.
Both documents are offset against each other automatically, so you don’t need to make a bank transfer.
VAT rules:
VAT on our commission invoice depends on your country:
Country / Type | VAT |
German customers | 19% |
Businesses within EU | No VAT (Reverse Charge) |
Private entities within EU | 19% |
Non-EU countries | No VAT |