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How Intellectual Property Assets Affect Estate Taxes

As intellectual property continues to grow as a wealth creation tool, individuals will be faced with the challenge of determining the value of the property, and the effect that such property will have on estate taxes.

Estate taxes on intellectual property, especially those based on copyrights, can have a substantial effect. When determining a person’s estate for purposes of estate taxes, it is first necessary to determine one’s gross estate. A person’s gross estate includes probate property and other tangible and intangible assets, such as retirement accounts or joint property. The current exemption for estate taxes is $2 million and will remain at this level through 2008. When valuing intellectual property for estate tax purposes, the taxable amount is generally accepted to be the fair market value of the intellectual property on the date of the creator’s death. Often, the taxes on a valuable piece of intellectual property in a decedent’s estate will be more than the available liquid assets or cash on hand to pay the estate tax. This often results in the estate being forced to sell some of the property in the estate to pay for the estate tax. Alternatively, the Internal Revenue Code does allow for tax payment deferment. This deferment period can allow an estate to take its time in determining how to pay the estate taxes, without being forced to make a hasty decision to sell estate property. Much of society’s wealth lies in intangible intellectual property. Valuation methods will vary by industry and type of intellectual property, be it copyright, trademark or patent. If you or your client’s estate is comprised largely of intellectual property, it may be necessary to contact an attorney experienced in intellectual property valuation and tax planning. Contacting the property advocate may save the estate a substantial amount in the form of taxes, allowing it to dispose of the rest of the property in accordance with the decedent’s wishes.


Protection of the Intellectual Property in Russia

What contribution has customs service made in order to protect business intellectual property rights? The legitimate rights owner who has reasonable grounds to believe that his intellectual property rights could be infringed during customs clearance through the border of Russia can file a complaint with the State Customs Committee (SCC) of Russia and request the protection of his rights. After consideration of application and, if required, after additional verification of the stated information, the documents issued by the State Customs Committee of Russia and the corresponding information are filed with the supervising customs bodies of Russia.
As practice shows, the infringements of the intellectual property rights are quite often accompanied by violations of customs rules. Enforcement Practice

The procedural part of the Code states that customs bodies have the right to file reports of the above-stated intellectual property rights infringements discovered during customs control.
The reports, filed by customs bodies serve as a legal ground for court judgments imposing administrative penalties and fines and/or confiscation of the imported goods that violate copyright or other intellectual property rights or trade marks.

The state bodies conducted the analysis of the trade mark protection enforcement practice. Those guidelines define the actions and serve as the legal ground for customs bodies actions and are based on concrete examples.

Customs bodies of foreign states control from several thousand up to several tens of thousand of trade marks. The customs bodies of Russia, according to the information of legal rights owners, control about 450 trade marks which are filed with the intellectual property register of the State Customs Committee of Russia.


Intellectual Property Protection: Legal Right Protection

Intellectual property, although intangible, is still ownable and your intellectual property rights should be protected. An intellectual property lawyer who is trained to help reclaim patent, trademark, copyright and trade secret rights can help protect your intellectual property.

Types of intellectual property include patents, trademarks and trade dress, copyrights, and trade secrets.


Your right to patent your invention is a constitutional right (Article I, section 8).
Patents are subdivided into three groups: design, utility, and plant. Utility patents are for wholly new inventions including machines, industrial processes, compositions of matter, and articles of manufacture. Plant patents cover innovations in plant-life, such as new species of plant created from the reproduction of cuttings and grafts of existing plants.

Patent lawyers will research previously granted patents for you to see if a similar product has already been patented or whether you should apply for a patent for your invention. You should find a specialized patent or intellectual property attorney because in order to prosecute a client’s patent application, he or she must be registered with the U.S. patent office. Trademarks

Trademarks are granted for words, names, symbols, or devices which separate and distinguish businesses and services. These include arbitrary names such as Kodak, suggestive names such as Caterpillar (tractors), descriptive names which indicated the business’ products or services, and generic names which are descriptive. Generic and some descriptive names cannot be protected, so a trademark or intellectual property lawyer should be consulted to see if your name qualifies for trademark rights. The professional company huntsvillealabamaattorneys provides all the information on lawyers huntsville alabama.


The Right Idea – Guide to Intellectual Property Rights

Ideas and knowledge or intellectual capital underpins the development of economies. The worth of ideas is considered intellectual property that has to be protected, albeit with conditions. And, so Intellectual Property Right (IPR) are the legal right resulting from intellectual activity in the scientific, literary and the artistic fields. The genesis of intellectual property rights and the very premise of intellectual property were identified as early as the 18th century. IPR allows the creators of ideas to enjoy certain exclusive rights for a limited period on intangible assets to control the use made of those productions. Following closely, the Berne Convention for the Protection of Literary and Artistic Works of 1886, extended intellectual property to the realm of copyright. This codified the right of artists to their creations. In 1893 both these united to form the United International bureaus for the protection of Intellectual Property Organisation under the UN through the Stockholm Convention in 1967. Talking of Intellectual property law of India, Abhilasha Kambhat, a specialist in IPR and a Lawyer at Rajasthan High Court says: “It is only in the last 15 to 20 years that people have become more aware of IPR. Government and private sector initiatives to disseminate knowledge about the subject through interactions with industries and other stakeholders have been one important reason for this positive change”Amarjit Singh, seminal authority on IPR and Managing Partner, Amarjit and Associates, an Intellectual Property boutique firm in Delhi, believes that economic liberalisation has tremendously changed the IPR regime. Shruti Sondhi, Managing Associate at Anand and Anand Associates, one of India’s top law firms in the fields of IPR says that IPR will only grow from strength to strength.

But IPR is not without its fair of criticism. Richard Stallman, the founder of the free software GNU project, believes that the term intellectual property itself is flawed as it is used as an overarching umbrella to incorporate different elements like copyright, patents, trademarks. India will face challenges in the IPR arena as more cases come to light.


What is Intellectual Property and 3 Key Issues About It

Intellectual property comprises patents, copyrights, trademark, design rights and registered designs. Some intellectual property rights (such as Patents, Trade Marks and Registered Designs) need a formal process of registration by the owner to the Intellectual Property Office, in order to afford protection and monopoly rights to the owner. Others, such as copyright and design rights, arise automatically upon creation, but do not protect from a third party’s independent creation – only from copying.

The IP rights differ in terms of duration and procedures, but the effect is to ensure that the owner has the exclusive right to use and decide how those rights are used and exploited and to prevent any other party from using the same rights.

Patents protect an invention that is new, novel and has industrial application. Copyright protects original literary works (e.g. instruction manuals, computer programs) dramatic, musical works or artistic works (such as logos, maps, technical drawings, diagrams, photographs, works of architecture). The owner of copyright is the first author of the copyrighted work. Please remember that, simple registration of your company with the Companies House, does not guarantee you trade mark protection. A Registered Design is a monopoly right for the appearance of the whole or a part of a product, resulting from the features of lines, contours, colours, shape, texture, materials of the product or its ornamentation. This means that contracts of employment need to have adequate provisions, dealing with creation of intellectual property and commissioned works need to be protected by appropriate contracts, which vest the intellectual property in the business commissioning the work.


Why Should I Use An Intellectual Property Solicitor?

Intellectual property is any creative work such as inventions, literary and artistic works, symbols, names and images used within business and considered to be the property of its creator. Intellectual property rights should be protected under ip law. Common types of intellectual property rights include copyrights, trademarks, patents, industrial design rights and trade secrets.

IP is divided into two categories – Industrial Property and Copyright.

Industry property includes patents for inventions, trademarks, industrial designs and geographical indications.

Whereas Copyright covers literary works such as novels, poems and plays, films, music, art such as drawings, painting and photos, recordings and performances.

So why should your intellectual property rights be protected?

Intellectual property rights reward creativity and human endeavour. If new technology, a design idea or invention is created it should not be allowed to be copied. Intellectual property rights allow the creator or owner to benefit from their invention.

A patent

A patent is an exclusive right granted for an invention. Register your trademark

Trademark protection ensures that the owners have the exclusive right to use them to identify goods or services. It is always recommended to register your trademark. An intellectual property solicitor will be able to advice companies on registering trademarks.

Geographical indication and industrial design should also be protected. Geographical origins ensure customers that the product is from a reputable source, and many companies have built their reputation on this.


The Revolt of the Poor: The Demise of Intellectual Property?

Three years ago I published a book of short stories in Israel. The publishing house belongs to Israel’s leading (and exceedingly wealthy) newspaper. It goes like this : if the rights to intellectual property were not defined and enforced, commercial entrepreneurs would not have taken on the risks associated with publishing books, recording records, and preparing multimedia products. Consider a publishing house.

If illegally copied (thereby shrinking the potential market as some people will prefer to buy the cheaper illegal copies) – its price would have to go up prohibitively to recoup costs, thus driving out potential buyers. The story is different if a book costs 10,000 DM to produce and is priced at 20 DM a copy with a potential readership of 1,000,000 readers. Governments, from China to Macedonia, are introducing intellectual property laws (under pressure from rich world countries) and enforcing them belatedly. Moreover, piracy thrives in very poor markets in which the population would anyhow not have paid the legal price. Intellectual property is a relatively new notion. Texts, discoveries, inventions, works of art and music, designs – all belonged to the community and could be replicated freely. The more massive the market, the more sophisticated the sales and marketing techniques, the bigger the financial stakes – the larger loomed the issue of intellectual property. It spread from machinery to designs, processes, books, newspapers, any printed matter, works of art and music, films (which, at their beginning were not considered art), software, software embedded in hardware, processes, business methods, and even unto genetic material.

Intellectual property rights – despite their noble title – are less about the intellect and more about property. This is Big Money : the markets in intellectual property outweigh the total industrial production in the world. The monopolists of knowledge and intellectual products cannot allow competition anywhere in the world – because theirs is a world market. Either the price should be lowered in the Macedonian market – or an average world price should be fixed which will reflect an average global purchasing power.

Intellectual products are very price sensitive and highly elastic. High prices are an implicit trade-off favouring small, elite, select, rich world clientele. Two developments threaten the future of intellectual property rights. Academics, fed up with the monopolistic practices of professional publications – already publish on the web in big numbers.


Intellectual Property – Patents – Grants of Rights to Third Parties

A patent can be owned jointly. However, under s.36 of the Patents Act 1977 (“the Act”) each proprietor can use the patent for his own benefit without the consent of or the need to take account of the other proprietors but, under s.37 of the Act, if a proprietor wishes to licence the patent i.e to allow a third party to use the patent, he/she must either gain consent from the other proprietor or apply to the comptroller for permission to exploit the patent.

In Paxman v Hughes [2005] EWHC 2240 (Pat), the relationship between the joint proprietors of a patent for making a type of drinks cooler broke down. Mr Paxman and Mr Hughes were both directors of Trim Cool Limited, a company which they incorporated to produce a cooler under the patent.

Mr Paxman, the inventor, sought an order from the comptroller to grant a licence to third parties to make and supply drinks coolers under the patent. ? the order required an extra-territorial jurisdiction which did not fall within the comptroller’s jurisdiction;

? Mr Paxman’s fiduciary duties as a company director prevented him from seeking this order.

The hearing officer struck out the case because the order sought was in breach of Mr Paxman’s duties as a company director.


When Does an Employer’s Intellectual Property Policy Go Too Far?

Many companies require their employees to agree to written policies that clarify Intellectual Property ownership of employment-related work product.

Some businesses have demanded that their employees agree to policies that assign and transfer complete right, title and interest to all Intellectual Property created during the entire time of employment – regardless of whether such inventions were created within the scope or course of employment.

Consequently, employers may consider taking the broadest possible approach, and demand a universal acquisition of all employee-created Intellectual Property regardless of the employee’s location, time, manner, or purpose when creating it.

As a policy matter, some commentators have argued that permitting enforcement of such overbroad employer-employee Intellectual Property ownership policies will have deleterious effects on society, as employees’ incentives to create independent content, and to contribute to Open Source Code and Creative Commons will be stifled.

Recognizing these valid policy concerns, and the potential for employer abuse, in at least 8 states, demanding acquiescence from employees through an overbroad policy of claimed Intellectual Property ownership as a required condition of continued employment has been declared unconscionable, void as against public policy, and/or lacking adequate contractual consideration, absent additional compensation other than continued employment.

In addition to the protections of the California Labor Code, California statutes provide other types of protections to creators of copyrightable works when they, as “independent contractors,” enter into work-for-hire agreements with those who commission their works.

California provides strong disincentives for employers to implement such a policy. California law provides that one who commissions a “work made for hire,” as defined in Section 101 of the Copyright Act, is considered the employer of the creator of the work for purposes of workers’ compensation and unemployment insurance.

Consequently in California, whenever a creator works on a work made for hire basis as defined by federal copyright law, that creator automatically becomes an “employee,” obligating the employer to bear the cost of workers’ compensation and unemployment insurance.

California issues penalties of up to $100,000 against uninsured employees. From the employer’s standpoint, acquisition of employees’ personal Intellectual Property could also open the proverbial can of worms. By having such a policy in place, employees’ participation on social networking sites, uploading of video clips, blog submissions and even family photographs could technically become the Intellectual Property of the employer. In conclusion, companies would do well to assert Intellectual Property ownership rights to copyrightable works, inventions, trade secrets and other materials created by employees within the scope of employment. However, a blanket policy which lays claim to any and all employee-created Intellectual Property-whether related to employment or not, is both unwise and potentially unenforceable.


Intellectual Property Infringement and Patent Law

An intellectual property infringement is the violation of an intellectual property right. The different types of intellectual property rights are copyrights, patents and trademarks. Thus, an intellectual property infringement may for example can be a

Trademark infringement-

It is an infringement of the exclusive rights attaching to a trademark without the permission of the trademark owner or any licenses. The proprietor of a trademark may inaugurate legal proceedings against a party which infringes its registration.

Patent infringement-

The description of patent infringement may differ by jurisdiction, but it normally consists of using the patented invention. In New York, White Plains and all cities within New York, it is used to have a commercial purpose to constitute patent infringement

Copyright infringement-

It is the unauthorized or forbidden use of work under copyright as well as infringing the copyright holder’s sole rights, for example, the right to copy or reproduce the copyrighted works.

Some of the techniques to detect intellectual property infringement comprise of:

1) Fictitious entry, for example:

Fictitious dictionary entry-An example to fictitious entry is Equivalence incorporated in the New Oxford American Dictionary.
Trap street -A fictitious street incorporated on a map for the exploit of “trapping “probably copyright infringement of the map

Some intellectual property infringements need a proper process of register by the holder to the Intellectual Property Office, in order to yield protection and monopoly rights to the holder. This stated that contracts of employ requires adequate provisions, commissioned works have to be protected by suitable contracts and dealing with creation of intellectual rights which invest the intellectual property in the company commissioning the work.