Creating a Unique IP holding company

alexander August 5, 2019 0 Comments

January, 2018

Our Business lawyers helped formed a separate holding company for a client’s unique IP solution, which enabled them to license their IP.

the CHALLENGE

The client provided business processes, and software as a service to small businesses. They considered this to have tremendous commercial potential. They requested our advice on how best to exploit this solution.

how we helped

IP holding company

We created a separate intellectual property holding company for our client. This company managed the case management solution IP, under a software licence agreement. It then received license fees, under a long-term licensing agreement, from our client’s core business.

Creating a new company also created a varied investment profile for the group. Each shareholder could take different stakes in the original company and the IP holding company, depending on their investment preferences.

The creation of the IP holding company improved the group’s overall tax position. They could fully benefit from tax benefits, such as patent box, and R&D tax credits. In order to maximise the benefits gained, the IP company and our client’s original company were, in this case, best separated.

Licence agreement

The licence agreement shielded the IP holding company, because it would not face our client’s original company’s creditors. Additionally, our client’s original company could use the software under the licence agreement.

RESULT

Our work enabled the group to target a much wider market, and thereby was inherently valuable in allowing them to expand their business