The importance of distinctive, intangible property to a company cannot be stressed enough. While continual pressure is applied to the prices companies may charge for the goods and services they offer; only companies that offer unique products and services seem to escape the constant process of price erosion.
Brand names, trademarks, and other intangibles are essential to the distinctiveness of the products a company produces, and their ability to be exploited on a local, regional, even global level have provided many firms with various cost advantages. In various countries, the significance of trademarks and other intangibles to trade and industry has led to detailed tax rules, including the U.S. transfer pricing rules and the OECD transfer pricing guidelines
U.S. tax law regarding the development, ownership, and licensing of intellectual and intangible properties including trademarks, trade names, franchises and patents is based on both valuation and transfer pricing principles. Although the Internal Revenue Code contains many traps in its maze of related provisions pertinent to these processes, CB&H’s expertise with the Code, amplified by regulations, rulings and case law, lends structure and guidance as well as global tax efficiency to the valuation and transfer of your intellectual properties. Such structure allows your company to take advantage of significant non-recognition opportunities, facilitates cross-border transfers of intellectual properties, and simplifies the maze of IRS codes and provisions.
Key Services Offered:
Analysis of property transfers to designate non-recognition treatment
Analysis of “Source of Income Rules” including those governing fixed payment and contingent sales, depreciable/ amortizable property, property sales, and transfers of intangible assets between associated enterprises
Tax treatment of transfers with and without retention of “significant rights”
Impact of Royalty or “Super Royalty” provisions on the valuation of intellectual property transfers
Planning and valuation for intellectual property transfers to related entities including cost sharing arrangements (CSAs)
Coordination of offshore transfer of U.S. owned and developed intangibles with code non-recognition provisions
Valuation of charitable contributions of intellectual and intangible properties
