This document discusses key considerations for licensors when drafting and managing licensing agreements, including potential issues that can arise. It covers: 1. How to clearly define net sales and allowable deductions in the net sales clause to avoid disputes over royalties owed. 2. "Hide and seek" clauses licensors should be aware of that could significantly impact finances, such as sell-off periods and anti-dumping clauses. 3. Common misunderstandings around royalty calculations, escalations, and sales to the licensor that need clarification. 4. Best practices for licensees in accurately calculating and reporting royalties owed to avoid errors or underreporting. 5. Why licensors