This page explains how to calculate arm-length royalties and use reliable comparable data to strengthen your trading position or ensure compliance with your transfer prices. With regard to the content of intercompany agreements, we highlight three key principles: LCN Legal has published a model for intellectual property licensing for transfer pricing. It is important to ensure that intercompany agreements respect reality, comply with transfer pricing documentation and comply with market standards. If you are considering conceding your intellectual property to third parties or if you want to enter into an agreement that allows you to use the intellectual property of another brand, you need to understand how the compensation portion of the agreement works. The content of intercompany agreements depends largely on the nature of the controlled transaction and the jurisdictions in which the controlled transactions take place. Complex controlled transactions, such as the licensing of intellectual property. B require detailed contracts. Contracts for simple controlled transactions, such as the provision of administrative services, are. B can be maintained easily. If you need price-compliant intercompany agreements for your controlled transactions, we have something for you… A patent licensing agreement is a contract that defines the conditions under which a buyer can use a licensee`s patented product. Our RoyaltyRange royalty database is the preferred source for comparable data for European transfer pricing practitioners.
We provide companies with high-quality, user-friendly, OECD-compliant data on current comparable licensing agreements… Intercompany agreements are fundamentally different from third-party contracts (also known as commercial contracts). An intercompany agreement is signed by two companies that are part of the same group. Presumably they have the same objective: to increase the group`s result. They have the freedom to arrange the transaction as they see fit, and it is unlikely that there will be an argument. On the face of it, the Intercompany agreement is a formality. An intercompany agreement (also known as an ”intragroup agreement” or ”transfer pricing agreement”) is a (signed) contract between two or more related companies. This contract governs the terms (CG) of controlled transactions, such as the provision of goods or services from a company linked to another associated company. License a patent for royalties: If you have invented a new product, you can either market it yourself or license the intellectual property rights of third parties.
The royalties you can charge for licensing a brand vary by industry. If you are entering into a trademark licensing agreement or conducting a transfer pricing analysis for an intercompany transfer of trademark rights, it is useful to know which rates are typical in the sector. On the other hand, a third-party agreement is the result of negotiations on CT by two independent companies that protect their own interests.