Intellectual property licensing is a great way for companies to monetise their IP rights. It allows a company to take advantage of their IP without having to facilitate manufacturing or marketing their innovation. Licensing your IP rights allows a company to create additional streams of revenue through royalties, licensing fees and/or upfront payments. Taking advantage of the opportunities provided by licensing can allow companies to increase their reach within their own market and access the resources of other companies to commercialise their IP in different territories and industries.
Patent Box enables companies to benefit from reduced tax rates on income generated from patented innovations. To qualify, a company must either own or hold exclusive rights to exploit a patent, which is often achieved through patent licensing. Licensing ensures that even businesses without direct ownership of patents can still access the benefits of the Patent Box, making it a key tool for maximizing tax efficiency while encouraging innovation.
This careful structuring of patent ownership and income can support a company’s global tax strategy while ensuring compliance with legal and regulatory requirements.
At Source Advisors, we have dedicated IP and Tax teams, meaning all work is kept in-house. Having in-house teams gives us a robust understanding of the nature and coverage of your patent portfolio.
Our IP team also has extensive experience navigating the complexities of licensing arrangements between companies within a group structure.
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Source Advisors has a wealth of experience helping companies of all sizes navigate uncertainties surrounding tax and licensing of IP, allowing them to confidently maximise the advantages of IP ownership, licensing and accessing the UK’s Patent Box incentive.
Our IP consultancy services, including Patent Box, are closely linked with R&D tax relief and a company can often claim tax relief under both schemes, including Research and Development Expenditure Credit (RDEC), the new merged scheme and the Enhanced R&D Intensive Support (ERIS) scheme.
Find out more about our R&D tax relief services.
