1. Squeezing IP commercialization strategies within the tax and excon framework Anthony van Zantwijk (BSc (Civil) Eng, LLB, LLM (Tax), Patent attorney)

2. TransactionExcon Outgoing licence  Even if not at market-value Intermediary licensee Incoming licence?Only for payment of royalties Software development?Evaluation Assign ZA IP Assign foreign IP NDA  R&D?If assigning / sharing IP

3. Assignment?

4. TransactionTax Outgoing licenceRelationship Incoming licenceRelationship Origin of IP Economic ownership License fee (25yr)) Withholdings tax VAT Domestic licenceExclusivity premium DevelopmentR&D tax incentive Assign IPForeign: Relationship Domestic: know-how, TM

5. Questionable clauses Licensee assigns improvements Licencee will not challenge validity of IP Licensor carves-up territories within the EC Royalty is net of withholdings tax Licence restricts use in non-patented territories

6. Combine supply with licence

7. Substance Perpetual, exclusive licence for license fee Assignment with revision clauses

8. Funding Composite transaction Value of an interest free loan repayable out of profits? Value of the shares received by the inventor?

9. Para (g(iii)) GI Defn Gross Income means, g) any amount received or accrued from another person, as premium or like consideration-- … iii) for the use or right of use of any patent, design, trade mark, copyright, model, pattern, plan, formula or process or any other property or right of a similar nature;

10. Funding Can the shares be valued? Is funder receiving value for his loan? (income) Is the transfer of IP a CGT trigger?

11. Withholdings tax (CFC?)

12. CFC Where does further (regular and direct) development occur? Software royalties?