Transaction tax

Intellectual Property and Tax – Collaboration is Key to Mitigate Business Risk (Podcast) – Intellectual Property

United States: IP and tax – Collaboration is key to mitigating business risk (Podcast)

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Intellectual property is one of the main drivers of the profitability of a multinational company. Because intellectual property is inherently mobile, intellectual property tax planning routinely involves cross-company licensing, cost sharing, and other joint ownership structures. Moving intellectual property as part of a tax planning strategy can generate significant net worth, but doing so without the coordination of intellectual property and tax expertise creates significant risks. These questions are also an essential part of any merger, acquisition, reorganization or joint venture.

Whenever a transaction involves either the acquisition or migration of intellectual property assets, it often results in decisions between affiliates that involve both tax and intellectual property issues. Failure to resolve both tax and intellectual property issues can result in harm to the business. If not done correctly, a business may not have standing to sue for lost profits or obtain an injunction. In addition to these intellectual property risks, cross-border intellectual property structures come with increased audit risk, as demonstrated by recent U.S. Tax Court cases in which the interplay between tax and intellectual property is often an integral part of the result.

Please join James R. Ferguson, intellectual property partner of Mayer Brown, and tax partners Jenny Austin and Michael Lebovitz as they discuss critical considerations and best practices for these transactions, answering questions such as :

  • How can a company optimize its tax situation by investing its intellectual property assets?
  • What transfer pricing issues arise when a company transfers ownership of its patents from one jurisdiction to another?
  • How does cost sharing affect the tax treatment of intellectual property assets developed by joint ventures?
  • What tax disputes are currently being raised regarding the ownership of intellectual property assets?
  • What patent enforcement issues can arise when a company transfers ownership of its intellectual property assets from one jurisdiction to another?
  • How can a company best design its cross-affiliate licensing structure to protect the enforcement options of its patent portfolio?
  • How should patent-holding companies draft employment contracts to secure ownership of all future inventions?

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This article by Mayer Brown provides information and commentary on interesting legal issues and developments. The foregoing is not a complete treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action regarding the matters discussed here.

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