Intellectual property protection and exploitation
The tax efficient exploitation of a client's intellectual property can yield startlingly beneficial results. The key to this success is identifying a piece of intellectual property before it has acquired any significant value. Whether the intellectual property is a patent, a copyright or an image right, the successful sale or assignment of this property to a corporate structure and the subsequent licensing structures used to take advantage of various double tax treaties allow ILS's clients to enjoy the maximum benefit possible from their creative abilities.
The payment of license fees or commissions by one individual or entity to another for the use of intellectual property is known as royalty routing. Intellectual property can take a number of forms:
- Patents that protect inventions or new processes
- Trademarks that relate to the names of the products and perhaps also their design and packaging
- Copyright which attaches to any original creative idea expressed in words or pictures
- Image rights
ILS Fiduciaries can assist clients in generating the income arising form these rights in the most tax-efficient manner possible through a tailored royalty routing structure.