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Economic Damages: Lost Profit, Patent, Copyright, Trademark, Breach of Contract, Accounting, Fraud

Sidney P. Blum, CPA CFE, CPEA, CFF

Sidney P. Blum, CPA CFE, CPEA, CFF

All of California and the USA
Los Angeles, California 91364

Phone(818) 631-3192

Website www.contractcomplianceservices.com

► Contact Sidney P. Blum, CPA CFE, CPEA, CFF

Expert WitnessForensic ExpertLitigation SupportSpeaker
Highly respected, polished, great reports, and highly skilled in testimony. A global award winning economic damages expert with more than 30 years experience opining on forensics, patents, trademarks, copyrights, lost profits, royalty audits, marketing, and fraud. Expert witness testimony in complex litigation involving business, real estate, personal injury, liability issues, damage analysis of lost profits, unjust enrichment, reasonable royalties and lost earnings, valuations, and fraud investigation. Specialties include: accounting, breach of contract, business interruption, construction, delays and defects, economic analysis, fraud investigation including misstatements and misrepresentations, intellectual property including patent, copyright and trademark infringement and trade secrets, defamation, personal injury, professional malpractice, real estate, securities, false advertising, unfair competition, real estate, and wrongful termination.

A world leading expert on royalty auditing and royalty agreements. Former Big 4 Partner and Chief Audit Officer at Beats Electronics until its sale to Apple. A career split between leading companies (Disney, Oxy, Unocal) and CPA firms. An author of two books on financial terms in agreements (Oxford University Press & LexisNexis). Financial damages expert in matters with claims up to several billion dollars.

Expert witness in more than 80 cases in Federal, State, arbitration, and USITC matters. Case experience includes contract breach, complex commercial litigation, patent, trademark, copyright, wrongful termination, false advertising, personal injury, energy, partnerships, and professional accounting standards. His clients have won more than 90% of the cases and his calculations are generally accepted over other experts. Deep industry expertise in entertainment, apparel, energy, chemicals, consumer products, medical devices, pharmaceuticals, construction, licensing, manufacturing, software, hardware, service and toys.

Services

Mr. Blum offers the following services:

- Economic Damages, IP, Royalty Audit, Breach of Contract & Fraud
An award winning economic damages expert with more than 30 years of experience opining on forensics, lost profits, royalty auditor professional competency, marketing, and fraud. A world leading expert on royalty auditing and royalty agreements. Former Big 4 Partner and Chief Audit Officer at Beats Electronics until its sale to Apple. A career split between leading companies (Disney, Oxy, Unocal) and CPA firms. An author of two books on financial terms in agreements (Oxford University Press & LexisNexis). Financial damages expert in matters with claims up to several billion dollars.

- Complex Business Litigation and Intellectual Property Expert Witness
Expert witness in more than 80 cases in Federal, State, arbitration, and USITC matters. Case experience includes contract breach, complex commercial litigation, patent, trademark, copyright, wrongful termination, false advertising, personal injury, energy, partnerships, and professional accounting standards. His clients have won more than 90% of the cases and his calculations are generally accepted over other experts. Deep industry expertise in entertainment, apparel, energy, chemicals, consumer products, medical devices, pharmaceuticals, construction, licensing, manufacturing, software, hardware, service and toys.

- Royalty Audits & Agreements
Blum led the national royalty audit practices for Big 4 firms Ernst & Young and KPMG where he also wrote the global contract audit methodologies. His clients have ranged from industry leaders to individuals. Commonly audited industries include consumer products, electronics, software, apparel, media and entertainment, medical devices, pharmaceuticals, toys, foods, and automotive. He also frequently talks about royalty agreements to bar organizations, law firms and at major events. He testifies on royalty auditor compliance within AICPA Standards. Representative clients have included Amgen Biotech, Microsoft, Disney, Dolby, Sony, Paramount Pictures, Mattel, GM, Sears, IGT, Tony Roma’s, Classic Media, Everlast Boxing, IMG, Time Warner, Philips, Tessera, Diageo, Harley-Davidson, Chrysler, J.C. Penny, Ross, Obey Clothing, Barry’s Bootcamp, DKNY, Ed Hardy, Body Glove, K Swiss, NBA, NFL, UMB Bank, Bank of America, US Polo Association, Conor McGregor, Tom Hanks, Lady Gaga, Dr. Dre., Justin Bieber, will.i.am, Steven Spielberg, Charlize Theron, Jimmy Iovine, Fleetwood Mac, Woody Allen, Shark Tank, The Apprentice, Nickelodeon, Marvel, HIT Entertainment, Warner Bros,. WWE, Hasbro, McDonalds, SAG, DGA, WGA, and many more.

- Fraud & Forensics
Having led more than 1,500 forensic investigations, Mr. Blum was named the “Certified Fraud Examiner (CFE) of the Year” in 2012, by the Association of CFE’s. Later, Mr. Blum was elected as one of five ACFE board members and Vice Chair of the Board of Regents for 2016-2017. The Regents has authority over the admission of members and examination standards. The Board is also responsible for establishing, modifying, and enforcing the ACFE Code of Professional Ethics and all other matters necessary to maintain the high standards of the ACFE.


Litigation Support Services

Complex Business Litigation and Intellectual Property Expert Witness
Expert witness in more than 80 cases in Federal, State, arbitration, and USITC matters. Case experience includes contract breach, complex commercial litigation, patent, trademark, copyright, wrongful termination, false advertising, personal injury, energy, partnerships, and professional accounting standards. His clients have won more than 90% of the cases and his calculations are generally accepted over other experts. Deep industry expertise in entertainment, apparel, energy, chemicals, consumer products, medical devices, pharmaceuticals, construction, licensing, manufacturing, software, hardware, service and toys.
Royalty Audits & Agreements
Blum led the national royalty audit practices for Big 4 firms Ernst & Young and KPMG where he also wrote the global contract audit methodologies. His clients have ranged from industry leaders to individuals. Commonly audited industries include consumer products, electronics, software, apparel, media and entertainment, medical devices, pharmaceuticals, toys, foods, and automotive. He also frequently talks about royalty agreements to bar organizations, law firms and at major events. He testifies on royalty auditor compliance within AICPA Standards. Representative clients have included Amgen Biotech, Microsoft, Disney, Dolby, Sony, Paramount Pictures, Mattel, GM, Sears, IGT, Tony Roma’s, Classic Media, Everlast Boxing, IMG, Time Warner, Philips, Tessera, Diageo, Harley-Davidson, Chrysler, J.C. Penny, Ross, Obey Clothing, Barry’s Bootcamp, DKNY, Ed Hardy, Body Glove, K Swiss, NBA, NFL, UMB Bank, Bank of America, US Polo Association, Conor McGregor, Tom Hanks, Lady Gaga, Dr. Dre., Justin Bieber, will.i.am, Steven Spielberg, Charlize Theron, Jimmy Iovine, Fleetwood Mac, Woody Allen, Shark Tank, The Apprentice, Nickelodeon, Marvel, HIT Entertainment, Warner Bros,. WWE, Hasbro, McDonalds, SAG, DGA, WGA, and many more.
Fraud & Forensics
Having led more than 1,500 forensic investigations, Mr. Blum was named the “Certified Fraud Examiner (CFE) of the Year” in 2012, by the Association of CFE’s. Later, Mr. Blum was elected as one of five ACFE board members and Vice Chair of the Board of Regents for 2016-2017.

Areas of Expertise

Additional Expertise:

DMCA, Entertainment & Media, Internet, Contract Breach, Oil & Gas, Defamation, Accounting Professional Confidence and Compliance with AICPA Standards.

Consulting Practice

All states, with an emphasis on California.

Professional Experience

Shareholder
Flare, Inc. (August 2016–present)
• Financial damages, breach of contract, fraud, royalty audit standards, and forensics expert witness and consultant. Royalty auditor.

Managing Director
Stout, Risius, Ross (2014–2016)
• West Coast in charge of litigation support and royalty audit.

Chief Audit Officer / Head of Audit
Beats Electronics, LLC (2012–2014)
• Hired by the client and with Beats from one employee to sale to Apple.
• Established internal audit department. Strategic consultant to executive management.

Partner – Royalty & Contract Audit and Litigation Support
Green Hasson & Janks, LLP (2009-2012)
• Partner in charge of royalty & contract audit and litigation support.

Partner - In Charge of Forensic Advisory Services
Stonefield Josephson, Inc. (2008–2009)
• Supervised department of four partners plus staff.
• Only partner with Fortune 100 clients (Diageo, Sony, Viacom).

Partner – Advisory Services
KPMG, LLP (2003–2008)
• Partner in Charge: West Region Royalty Audit Services.
• Wrote global Contract Compliance Services and Royalty Compliance Services methodologies.

Group Director, Director, Assistant Director, Senior Manager and Manager Ernst & Young (1986-1989) (1997-2003) “Internal Audit Services” (IAS)
• National IAS Leader: Fraud and Forensics.
• National IAS royalty audit leader. Wrote royalty audit methodology.
• Regional IAS Industry Leader for Manufacturing and Distribution clients.
• Regional IAS Industry Leader for Entertainment, Technology, and Communication clients.
• California IAS Industry Leader for Internet Companies.

Accounting Manager and Internal Audit Manager
The Walt Disney Company (1995–1997)

Senior Auditor
Unocal Corporation (1992-1995)

Staff Auditor
Occidental Petroleum (1989-1992)

Financial Statement Auditor
Ernst & Whinney (1986-1989)


Licenses

• Certified Public Accountant (California & New York)
• Certified Fraud Examiner
• Certified Professional Environmental Auditor in Health & Safety
• Certified Professional Environmental Auditor in Environmental Compliance
• Certified in Financial Forensics


Legal Experience & Services

An expert witness in more than 80 cases, both arbitration and trial. A majority are in federal court.


Affiliations

Association of Certified Fraud Examiners
American Institute of Certified Public Accountants


Qualifications

One of American's leading financial damage experts who has always had his financial damage calculations accepted with no successful Dauber motions. Most clients are repeat attorneys and all work personally done by Sidney Blum so the reports are accurate, concise and the testimony is informed and not speculative. When you really want the best in a financial damages expert witness.

A leading expert in royalty rates and royalty auditor confidence. Also, an expert with real world experience having worked in corporate America as an employee for 20 years in executive level positions. Mr. Blum brings the balance to the table of real world experience that shines in reports and testimony making him the witness that the jury and judge will trust.

Mr. Blum was named the Certified Fraud Examiner of the Year in 2012, out of 80,000 plus members. This prestigious award bring significant credibility to Mr. Blum's testimony.


Awards & Honors

• Surgent “California CPA of the Year” (2017)
• ACFE “Certified Fraud Examiner of the Year” (2012)
• ACFE Vice-Chair, Board of Regents. Association of Certified Fraud Examiners (2016-2017)
• “National Innovation Award.” Ernst & Young (1st & 2nd place)


Seminars & Training

Presentations
• “Royalty Auditing: What IP Lawyers Should Know”
• “Monitoring Third Parties”
• “Avoid Key Financial Errors in Licensing Agreements”
• “Common Mistakes in Royalty Agreements”
• “Drafting Clear Financial Terms and Conditions To Avoid The Pitfalls In Royalty Contracts”
• “Establishing a Company’s Fraud Detection Program – Part A” (ICDC College)
• “Establishing a Company’s Fraud Detection Program – Part B” (ICDC College)
• “Financial, Auditing, and Operational Considerations in IP Agreements and Royalty Audits”
• “Forensic Accounting and Expert Witness Workshop”
• “Fraud Detection, Understanding the Accounting Investigators Role – Part A” (ICDC College)
• “Fraud Detection, Understanding the Accounting Investigators Role – Part B” (ICDC College)
• “Legal Foundations of Licensing - The Royalty Audit and Accounting Issues”
• “Preparing a Fraud Damages Report for Court – Part A” (ICDC College)
• “Preparing a Fraud Damages Report for Court – Part B” (ICDC College)
• “Selected Issues in Dispute Resolution: Entertainment & Media Industry”
• “Should Auditing For Fraud Be a Full-Time Job?”
• “Top Dozen Financial Mistakes in License Agreements”
• “What Every Licensor Should Know About Royalty Auditing”


Publications

Books
• Financial Elements of Contracts: Drafting, Monitoring and Compliance Audits – Oxford University Press.
• License, Royalty & Revenue Agreements: Drafting, Monitoring and Auditing – Lexus Nexus.

Articles
• "Dealing with IP Licensees Around the World," IP Law 360.
• "Effective Licensee Monitoring," Intellectual Asset Management magazine.
• “20 Licensee Best Practices to Reduce Royalty Audit Claims,” The Licensing Journal.
• “Challenges in Global Licensee Monitoring," Global License! magazine.
• “Challenges in Global Licensing Monitoring,” BEL: Brand Extensions & Licensing Worldwide Magazine.
• “Drafting Agreement Tips – Common Mistakes in Defining Net Sales in a Royalty Agreement,” The Licensing Journal.
• “Royalty Audits – Compliance with AICPA Standards,” American Institute of Certified Public Accountants, Forensic and Valuation Services Consulting Digest, Issue 28.
• “Tips for Developing Effective Licensee Monitoring,” IP Law 360.
• “Under-reporting Royalties by Licensees is More the Rule, Not the Exception,” The Licensing Journal.


Professional References

Dozens available on request.


Education

California State University, Northridge – BS, Business Administration, Accounting Theory & Practice (cum laude).


Articles Published by Sidney P. Blum, CPA CFE, CPEA, CFF

 Effective Licensee Monitoring

Businesses that include proper contract language instructing a licensee how to calculate a royalty, the specific documents to retain and that have a proactive licensee monitoring program are best positioned to achieve higher royalty revenues at reduced monitoring costs without damaging business relationships.

Read Article



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