Commentary

B5.310 Non-exclusive and exclusive licences―keep-out clauses

Business tax
Business tax | Commentary

B5.310 Non-exclusive and exclusive licences―keep-out clauses

Business tax | Commentary

B5.310 Non-exclusive and exclusive licences―keep-out clauses

The corporate tax treatment of intangible assets, including intellectual property, acquired or created on or after 1 April 2002 is set out in the corporate intangible regime as detailed in Division D1.6.

A rights owner who grants a non-exclusive licence is not giving up the right to exploit intellectual property but merely sharing it with others. As outlined in B5.309, in these circumstances lump sums are treated as revenue receipts just as much as volume royalties. Another example of this principle is the decision in Rustproof Metal Window Co Ltd's'1.

Conversely, a lump sum paid for

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