Commentary

B5.302 Exploitation of intellectual property

Business tax
Business tax | Commentary

B5.302 Exploitation of intellectual property

Business tax | Commentary

B5.302 Exploitation of intellectual property

Intellectual property may be exploited in a number of ways:

  1.  

    (a)     The underlying invention, work, plant variety, trade mark or design may be used by the owner in the course of its own enterprise, to competitive or other advantage. Trading profits or professional receipts may be enhanced and taxed. For example, the owner of literary copyright may print and sell books, or an artist may sell a sculpture but retain artistic copyright1

  2.  

    (b)     The intellectual property2 itself may be sold, gifted or devised, in whole or in part; for example, the owner of copyright in a book may sell the right to make and exploit a film based on the book. In principle such a transaction is capital in nature, involving disposal of an intangible asset. In practice, case

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