Page 40 - Strategic Tax Planning for Global Commerce & Investment

Cross Border Tax Planning Strategies

However, in practice there are other considerations that need to
be taken in account when deciding where to locate IP.

 Generally, the primary concern will be to
ensure that the jurisdiction of choice offers
strong protection for IP rights.
 In some regulated businesses, regulatory
issues will limit the choice of locations.
 The presence of skilled personnel and ade-

quate infrastructure that allow efficient
creation, management and further devel-
opment of the IP.

The Creation of IP

Technically, new IP can be owned wherever desired, regardless
of where the activities giving rise to the IP are carried out.

There are two main Research & Development (R&D) models to
develop IP:

1. Traditional R&D Model

For example, the development of technical know-how and any
resulting patents resulting from the activity of R&D. The
traditional model will involve a company (the “R&D
company”) carrying out research as principal (at its own
expense and risk) and resulting in the R&D company itself
owning the IP, as shown in the following graph:

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