Royalty enforcement: documents to prepare
Enforcing unpaid royalties on tokenised rights requires four groups of documents: proof of the underlying right, ledger records showing the token and its transfers, correspondence showing when the royalty fell due, and a calculation of the amount owed. Missing any group delays the filing by weeks.
What changes once enforcement starts
A royalty file changes character the moment a formal demand goes out. Before that point, the parties are still negotiating, and nothing beyond ordinary correspondence is fixed in writing. After a written demand, every following exchange becomes part of a documented dispute.
This is the point of no return. Once the demand carries a deadline, withdrawing it requires a separate written notice, and the counterparty's silence starts to count against them. The clock inside the underlying licence or issuance agreement, not a public deadline, sets how long the counterparty has to reply.
Documents to assemble
Each group answers a different question a decision-maker will ask later. Assembling them in this order avoids reopening the file halfway through.
| Document group | What it proves | Where it comes from |
|---|---|---|
| Rights record | That the royalty right exists and who holds it | Token issuance file or licence agreement |
| Ledger extract | Which wallet or account received the token, and any transfers since | On-chain explorer or the platform's custody log |
| Payment correspondence | That a royalty fell due and was not paid | Invoices, payment instructions, reminder messages |
| Calculation sheet | The amount owed and the method used to reach it | Prepared by the claiming party, checked against the licence terms |
Steps before filing
- Collect the rights record first. The caseworker confirms the royalty clause applies to the specific token before anything else moves.
- Pull the ledger extract for the whole non-payment period. The analyst checks it against the wallet addresses named in the licence.
- Assemble payment correspondence in date order. The paralegal removes duplicate reminders and keeps the first and last message in each thread.
- Draft the calculation sheet. The caseworker recalculates it twice before it leaves the file.
- Send the holder communication before any formal demand. The steps for this are set out in the Holder communication procedure.
- File the formal demand only once the counterparty has had the full response window to reply.
Who decides, and how long it takes
The forum is fixed by the licence or issuance agreement, not by this office. Most tokenised-rights agreements name either a court at the issuer's seat or an arbitration panel chosen by the parties.
That body decides on the merits once the claim is filed. It does not decide how the documents are assembled beforehand. Timing follows the same agreement: a response window, then a filing window, then a hearing or an award. Where the agreement is silent, the forum sets its own procedural calendar once the case is lodged.
If your situation differs
- If the counterparty is outside the EU, the demand still follows the agreement's chosen forum. Only the method of serving documents changes.
- If more than one holder shares the royalty right, each holder's share needs its own calculation sheet before a joint claim is filed.
- If the counterparty disputes that the token carries the royalty right at all, the file needs the original issuance documents before any demand goes out.
What this page does not cover
This page does not calculate what a specific royalty stream is worth, and it does not size a file for a given number of registries or jurisdictions.
Where the underlying asset sits in the Netherlands, the limits of what can be established there are set out separately: Asset in Netherlands and its limits.
Where the immediate question is what to do the moment payments stop, rather than how to prepare a file, the debtor-side situation is covered here: Debtor report when royalties stop.
For a sense of what each level of scrutiny costs before committing to a full file, see: Three tiers, and the question each of them answers.
Verified
Last reviewed on 4 March 2025. This page describes internal file-preparation practice for royalty enforcement on tokenised rights. No statute or regulation is cited here, because procedural pages describe the sequence of work rather than its legal basis.
Related reading
See also: How custody and control review tokenised rights documents to.
FAQ
How long does royalty enforcement take in practice?
It depends on the window set in the agreement and the forum's own calendar. The demand stage usually runs a few weeks; a contested claim runs several months once filed.
Which documents are needed to start?
The four groups described above: the rights record, the ledger extract, the payment correspondence, and the calculation sheet. A file missing any one of these is not ready to file.
What happens if the other side does not respond?
Once the response window closes, the file moves to formal filing at the chosen forum. The absence of a reply is itself recorded as part of the evidence.