Patent-Holding Companies Hold Risks.

Mondaq Business Briefing,  July, 2003  

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Reprinted with permission from The National Law Journal, June 16, 2003

Copyright [c] 2003 ALM Properties Inc. All rights reserved.

Savvy manufacturers often consider transferring their patents to a patent-holding company. This transfer can allow a business to increase its focus on maximizing the return from its patents by shifting the responsibility of developing licensing programs from the manufacturer to the holding company. The transfer may also provide increased business efficiencies in having one organization perform all administrative tasks to maintain the patents and run licensing programs. Such transfers can also have favorable tax consequences.

A risk exists, however, ...