Challenges when implementing CDM

Clearly, expecting partners to move to the new CDM standard, with the inherent upheaval that implies, is not without its challenges. These include

  • Operational impact: 
    Implementing the full choreography that the CDM standard offers can be a challenge especially for smaller companies. This also applies to the number of data fields the format supports. However, not all data fields are mandatory, thereby mitigating this issue. Also, some licensors may receive data with more precision that they were used to (e.g. with eight decimal places instead of six). This may require an update to their internal processes. On the other hand, not all CDM messages need to be implemented at once. It is possible to agree with business partners to carry out a full implementation over a period of time and only after the introduction of each step has been shown to operate effectively.

  • IT development impact: 
    CDM is richer than most existing claiming formats in terms of the amount of data provided and the detail of royalty calculation. This, in turn may require more tracking and storage for licensors. If the full choreography of the CDM standard is implemented there is of course a need for additional development by licensees. However, this may be balanced by the fact that a full implementation of the standard provides more clarity for licensees in terms of tracking changes to claims and invoice data

  • Additional resource requirements during the period of maintaining two formats:
    Some smaller licensees and licensors may take more time to adapt their systems and processes which may require their business partners to maintain both standards for a period.

  • Different processes:
    While CDM does not define any business rules or processes that users of the standard are required to implement (even though there is a choreography), it remains up to the licensee and the licensor to determine how to utilise the extensive functionalities of DSR and CDM standards in the context of their business relationship