---
title: Right to Use IP
description: A license of intellectual property granting the customer the software or media as it exists at a point in time, with no expected updates. Revenue is r...
sidebar_position: 25
tags: ['asc-606', 'Revenue']
---

# Right to Use IP

## The ASC 606 Standard

A license of intellectual property granting the customer the software or media as it exists at a point in time, with no expected updates. Revenue is recognized entirely when the license is transferred.

## The Real-World Scenario

You sell a digital download of a completed movie; the customer gets exactly what exists today with no promise of future edits.

## The Spreadsheet Breaking Point

Finance teams manually hunting down exact delivery dates for on-premise software keys to trigger revenue creates operational bottlenecks.

## The Hidden Cost to the Bottom Line

Delaying the recognition of Right to Use IP robs the company of massive, immediate revenue spikes in the current quarter.

## How GAAPX Eliminates the Risk

Automatically links to license generation systems to trigger full, immediate revenue recognition the exact second the key is delivered.