Patent Asset Transfers: Tax Implications of Patent Sale, License, Cost Share Arrangement, Contribution

Description

While transferring IP assets may seem to be a simple task, this simplicity is deceiving. Such transfers are full of legal and tax implications. The tax rules surrounding IP are complex and have not kept up with technology. Understanding IP treatment for tax purposes depends, in part, on the characterization of the transaction. Additionally, recognizing and comprehending the difference between legal ownership and tax ownership is critical. Legal ownership and tax ownership may not be with the same person or entity.

Regardless of the type of patent transfer, there will be tax consequences. The transfer classification may impact the allocation of deductions, withholding taxes, loss offsets, and other tax issues. Patents and other IP have unique federal income tax consequences that transferors and transferees must be aware of to ensure the transfer of IP is on a tax-advantaged basis.

Listen as our authoritative panel of tax attorneys examines tax ownership issues and the tax implications of different types of patent transfers, including sales, licenses and contributions. The panel will also discuss ways to address the tax concerns surrounding patent asset transfers and ensure that the patent transfer is on a tax-advantaged basis.