The new Patent Box regime will be a preferential regime for profits arising from patents allowing companies to apply a 10% corporation tax rate to profits attributed to patents. The standard tax rate is currently 26% as from April 2011.
Patent Box will encourage UK companies to further develop and commercially exploit their patent assets by directly providing a benefit to revenue driven by valuable patents. This is a clear incentive for UK companies to maximise the market potential of its existing and future patents.
The Government consultation process has now recently completed and whilst exact details are yet to be finally announced the framework is already now largely in place. It is anticipated that the scheme will come into effect from April 2013 with benefits being phased in over a five year period afterwards. Different patents and patent incomes will also be considered under the new rules.
UK companies should start to act now to ensure that valuable patents are being exploited commercially in order to take full advantage of this future incentive. This can be done by taking stock of current patent assets and understanding where exploitation potential may lie.
How can we help:
The exploitation of patented IP relies on any market potential being identified and acted upon.
We would assist you with that process by:
- Undertaking an assessment of your existing patented IP and reviewing that against your existing and future market strategies
- Researching the current market landscape and identifying potential opportunities for exploitation
- Ascertaining suitable routes to market and providing validating evidence
- Identifying market entry points and the likelihood of product take-up and adoption
- Working with you to develop suitable product development strategies and identifying partners and funding to support that process
TBAT Innovation Ltd would be pleased to talk to you further about how the Patent Box regime could be utilised to open up new opportunities for your products and services. For further information please contact 01509 670610 or email
info@tbat.co.uk