One of the top three software companies in the world also builds and sells a video game player. Third parties (including companies and individuals) build video games on this video game player and receive royalty from this software company; the corresponding royalty agreements signed by the two parties are called Title Licensing Agreements (TLAs). Since old TLAs expire and new TLAs come in every day, it is vital of this software company to extract 35-40 key value pairs and key attributes from each incoming TLA, including but not limited to – (a) name and address of the company or individual producing the game, (b) name of the game itself, (c) what operating system this game works on (d) various obligations that the company has to fulfil, (e) terms and conditions regarding royalty fee and incentive fee, etc., c) terms regarding payments, e.g., when it is due by, discounts, and additional charges, (f) expiration term, (g) power of attorney or transfer of the game from the owner to someone else, (f) amendment clauses, and (h) identify outliers w.r.to fee calculations or payment schedules, auto-renewals, etc.
The erstwhile process for this software company was manual and hence very laborious and error prone. Also, it could be scaled up only by adding more analysts to their current team.
Our team of data scientists and subject matter experts (SMEs) first worked to understand the problem in depth. Next, Scry trained Collatio® – Contract Intelligence on approximately 250 old TLAs to extract the required 35-40 key value pairs and attributes. Once trained, this software enabled the automated extraction of these attributes for incoming TLAs:
- Extract attributes (e.g., names of contracting parties, payment terms, address, royalty rate, tax).
- Identify non-standard clauses and flag them as anomalies.
- Identify non-standard terms and conditions within the clause (e.g., payment terms less than 30 days) and flag them as anomalies.
- Knowledge graphs to qualitatively search across contracts (e.g., show all contracts having payment terms of 30 days).
- Classify contracts for set-up purposes – TLA, Amendments, Addendums, etc.
- 92.2% – Straight-through processing across all agreements
- 97.4% – Accuracy for Title Licensing Agreements
- 92.6% – Accuracy for non-Title Licensing Agreements (but related ones, e.g., Amendments)