SAI Global Limited
(ASX:SAI) says it has been unable to come to terms with Standards Australia over a royalties claim and will head to arbitration.
Standards Australia is claiming royalties paid under a Publishing Licence Agreement pertaining to membership fees from SAI’s customer loyalty program.
SAI maintains the fees are not nominated as a royalty source and it considers the revenue derived as beyond the scope of the licence agreement.
SAI says the maximum exposure under the claim is around $1.5 million.
SAI Global made a net profit of $19.7 million for the first half of the 2015 financial year.
