In an article published on Oct. 28, 2015, Lori-Ann Johnson discusses foreign patent boxes and the disadvantages of moving IP assets to a foreign jurisdiction. Foreign patent box regimes are reduced tax rate profits derived from intellectual property (IP). These patent boxes have developed across Europe to incentivize multinational companies to locate their IP research and development dollars in the jurisdiction offering the patent box. The article details the proposed legislation to create a patent box regime in the U.S. “This innovation box regime would put the U.S. on par with the tax rate found in countries such as Ireland, England and the Netherlands,” Johnson explains. She recommends that companies think twice before moving their IP assets however. “In light of recent proposed legislation, before moving IP assets to a foreign patent box, consider the litigation downsides, consider the potential cost in the form of transfer taxes and pause. This could be the perfect time to step back and wait to see if the U.S. adopts the innovation box.” You may view the full article here.
- News & Analysis