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.
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