Intellectual Property
Intellectual Property can easily be owned by an Offshore Company.
Examples include IT software, technology rights, music, literature, patents, trademarks and copyrights.
An offshore company can purchase or be assigned the right to use a copyright, patent, trademark or know-how by its original holders with a power to sublicence. Upon acquisition of the intellectual property right the offshore company can then enter into agreement with licensees around the world who would be able to exploit the intellectual property right in various countries. The resulting profits can accumulate tax free in the Offshore Company. Often, the rights are held by a Trust for asset protection purposes, with the Trust licencing the Offshore Company to exploit the rights.
It is thought preferable to acquire, for example, a patent at the patent pending stage before it becomes very valuable so that the capital payment for the acquisition of the patent can be set at a lower amount. Often royalties paid out of a high tax area attract withholding taxes at source. In many cases an interposing holding company may allow a reduction in the rate of tax withheld at source.
It is also very easy to sell the assets if this becomes economically feasible.
Anguilla's copyright and patent legislation is some of the most modern in the world. In 2002 new Intellectual Property legislation was enacted which updates the laws relating to Trademarks, Patents, Industrial Designs and Copyright, and introduces registration systems for Layout Designs (Topographies) of Integrated Circuits and Geographical Indications and legislation for the protection of Trade Secrets. This legislation is part of the Government's commitment to the development of the e-commerce sector, and forms part of a comprehensive package of new commercial laws. The legislation was drafted to be more closely harmonised with TRIPS.
Counsel’s clients include IT software, technology rights, authors, artists and more.
