What is the purpose of an IP holding company? – Trademark

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Intellectual Property Holding Companies (IPHCo) are registered for the purpose of managing and holding the intellectual property assets of a company or group such as patents, trademarks, designs, copyrights, trade secrets and other proprietary know-how. IPHCos are often overlooked as a method of developing strategies for a new business or a new business structure. In simple terms, IPHCo will be registered as a separate legal entity, either as a subsidiary of the group’s parent company/shareholder or as the parent company of the group of companies.

A business group can significantly reduce administrative costs and reap significant benefits from tax minimization, for example by establishing an IPHCo in a jurisdiction with a lower corporate tax rate.

However, given the nature of intellectual property, IPHCos can play a vital role where companies specialize in technological innovation and product development. The primary benefit of an IPHCo is that it separates the intellectual property from the operations of other affiliates so that the company’s intellectual property portfolio is independently registered and managed. It is one of the best ways to safeguard and safeguard your valuable intellectual property assets in the event of litigation, financial difficulties or the insolvency of the business group’s operating company(ies), because the assets of IPHCo’s intellectual property may not be seized or sold in order to pay creditors.

An IPHCo will generally handle the registration, enforcement, assignments, marketing and licensing of the intellectual property assets of the group. Typically, all intellectual property rights will be assigned to IPHCo and therefore all exclusive rights granted by the various forms of intellectual property assets will vest in IPHCo. IPHCo would then license the intellectual property to the other companies in the group of companies as well as to third parties.

By creating a separate entity for the purpose of owning and operating the Intellectual Property Assets, you will be able to use those Intellectual Property Assets as collateral and ultimately sell or license those Intellectual Property Assets. independently.

An IPHCo is just one way you can structure your businesses to protect your valuable intellectual property assets. For more advice on corporate structures and intellectual property protection, contact KISCH IP.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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