Corporation Tax Act 2009 section 921

Licences connected with patents

Section 921 explains how the acquisition or grant of a licence relating to a patent is treated as a purchase or sale of patent rights for corporation tax purposes.

• Acquiring a licence in respect of a patent is treated as a purchase of patent rights
• Granting a licence in respect of a patent is treated as a sale of part of the patent rights
• Granting an exclusive licence for the remaining life of the patent is treated as a sale of the whole of the patent rights
• An exclusive licence means one that excludes the grantor and all other persons for the period until the rights expire