Many considerations go into licensing and settling disputes over intellectual property. But one often overlooked consideration is the impact of taxes on decisions to license or settle. Because there are complex tax issues that stem from either the licensing of intellectual property or the settlement of lawsuits concerning intellectual property, it is important to analyze the tax issues impacting a particular transaction at the early stage of the transaction and certainly long before the particular transaction is finalized. In addition, there are tax advantages for inventors of patents in transactions involving the transfer of patent rights, as inventors may be able to achieve favorable tax treatment for the sale of their patents, provided that certain guidelines are followed.
For a more detailed discussion, see my article on Taxes — An Overlooked But Important Consideration for Inventors and Patent Owners.
The authors of www.PatentLawyerBlog.com are patent litigation lawyers at Jeffer Mangels Butler & Mitchell LLP. We represent inventors, patent owners and technology companies in patent licensing and litigation. Whether pursuing patent violations or defending infringement claims, we are aggressive and effective advocates for our clients. For more information contact Stan Gibson at 310.201.3548 or SGibson@jmbm.com.