Avnet Velocity Develops Service for Proprietary Technology Royalty Collection
Avnet Velocity Develops Service for Proprietary Technology Royalty Collection
Innovative supply chain solution simplifies license management and creates a secure and auditable collection and payment process
PHOENIX--(BUSINESS WIRE)-- Avnet Velocity, the supply chain solutions unit of Avnet, Inc. (NYSE: AVT), today announced a new service that provides customers with a simple way to purchase products with licensed components and ensure the intellectual property (IP) owners receive the proper royalty fees associated with the technology. The royalty collection service provides Avnet's customers and partners with a seamless and straightforward method for tracking licenses, sales and payments, while increasing the efficiency of their supply chains.
"Avnet Velocity develops solutions to help customers improve the performance of their electronic component supply chains," said Wade McDaniel, vice president of Solutions Architecture, Avnet Velocity. "Because Avnet supports more than 100,000 customers around the globe, we have the ability to manage licensed products on a massive scale for our partners. By providing a secure and auditable collection and payment process, all parties involved can trust that every aspect of license management and royalty collection is being handled with integrity and in a cost-effective manner."
Customer demand led Avnet Velocity to create the industry's first supply chain service for managing product licensing and royalty collections. Prior to Avnet's solution, IP licensing owners needed to track which original equipment manufacturers (OEMs) were licensed to buy their products and control access to these products. They would then need visibility into which products their licensing program members bought. Finally, they would need to individually bill and collect payment for the associated royalties. This is a complex process that is burdened by managing a wide variety of international taxes, regulation compliance, and the time and effort needed to bill and collect fees. As a result, oftentimes there is a gap between actual product shipments and collected royalties.
Avnet currently ships millions of licensed units for products such as consumer technology equipment. By engaging with Avnet Velocity, IP owners can be assured that the fees associated with their products' licenses are embedded into the total cost of the electronic components when an OEM purchases them through Avnet. The service also ensures that OEMs are officially licensed to use the products they are purchasing. Avnet tracks and collects the royalty fees from the OEMs, and pays the royalties directly to the IP owners, providing an audit trail of all purchases. To manage this service and provide supply chain visibility to its customers, Avnet Velocity uses custom web applications in conjunction with dedicated ERP to control the delivery of products and the collection of royalties.
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About Avnet
Avnet, Inc. (NYS: AVT) , a Fortune 500 company, is one of the largest distributors of electronic components, computer products and embedded technology serving customers in more than 70 countries worldwide. Avnet accelerates its partners' success by connecting the world's leading technology suppliers with a broad base of more than 100,000 customers by providing cost-effective, value-added services and solutions. For the fiscal year ended June 30, 2012, Avnet generated revenue of $25.7 billion. For more information, visit www.avnet.com.
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