Is a huge problem ahead?

It would be the huge difference if royalty rate from 10% to 60% .
It is possible that other players take away the contract.

Stockbroking house CLSA suggested in late February that the PLA agreement may move to a more commercial royalty rate of 60 per cent being paid by SAI Global, rather than the relatively cheap 10 per cent currently.



In 2003, Standards Australia handed SAI Global a 15-year licence to publish and sell those standards when it floated the business on disallowed. The 15-year contract, regarded as a cash cow because of the low 10 per cent royalty rate it came with, runs until 2018, and then has a five-year option to renew on market terms.
But relations between the former parent and the ASX-listed offspring SAI Global have continued to deteriorate in the past few months with legal wrangling over the fine print and terms of the publishing agreement continues, as the original contract heads towards its final stages.


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bearish in Long term
bearish in Short term as well

added shorts