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Taxation of Intellectual Property

Author(s): Xuan-Thao N. Nguyen, Jeffrey A. Maine
Practice Area: Intellectual property, Intellectual property licensing, Patents, Regulation and compliance (Tax), Tax, Trademarks
Date: Oct 2021 i Other versions can be found in the Related Items tab.
ISBN: 9781402439087
PLI Item #: 325516

The taxation of intellectual property is a rapidly developing field requiring both intellectual property and tax practitioners to keep up with the latest developments. In recent years, there have been a number of changes in tax laws affecting intellectual property transactions and litigation. Taxation of Intellectual Property provides comprehensive coverage of these and other major congressional changes. This book also describes the latest IRS rulings and other administrative guidance (private letter rulings, field attorney advice, chief counsel attorney memoranda) governing intellectual property transactions.  Also included are summaries of recent IRS rulings addressing the deductibility of royalties paid under a patent license, the deductibility of salaries of researchers, and the deductibility of legal fees incurred in defense against patent infringement. Administrative rulings on the tax treatment of enterprise resource planning software, the allocation of wages for purposes of the research tax credit, the tax treatment of technology licenses, and the tax treatment of royalties received by a nonprofit organization are also provided.

Beyond the important federal tax updates, this book provides state tax updates impacting the popular domestic intellectual property holding company model. States have actively challenged the intellectual property holding company model, and Taxation of Intellectual Property looks at recent developments including the enactment of so-called add-back statutes and adoption of so-called combined reporting.

This book differs from other books on taxation of intellectual property in that, chapters dealing with intellectual property creation, acquisitions, and sales and licenses each begin with a general framework for analyzing the tax treatment of all forms of intellectual property. Finally, separate chapters in the book are devoted to the taxation of intellectual property held by corporations and partnership and the taxation of intellectual property held by non-profit organizations.

Professor Jeffrey A. Maine, B.B.A., M.B.A., J.D., LL.M., is Maine Law Foundation Professor of Law at the University of Maine School of Law, Portland, Maine. He has taught intellectual property tax concepts at numerous law schools over the past 23 years, and has published and lectured extensively on taxation. Prior to teaching, Professor Maine practiced at Holland & Knight in Tampa, Florida.

Professor Xuan-Thao N. Nguyen, B.A., J.D., is the Gerald L. Bepko Chair in Law, and Director of the Center for Intellectual Property Law and Innovation, at the Indiana University Robert H. McKinney School of Law in Indianapolis, Indiana. She is a nationally recognized scholar in intellectual property and commercial law. She has published numerous law review articles and CLE materials, and is a frequent lecturer on intellectual property and related subjects at law schools, PLI, AIPLA, INTA, and bar associations. She practiced law at Fried, Frank, Harris, Shriver & Jacobson in New York City.