{"id":5454,"date":"2021-07-15T16:18:31","date_gmt":"2021-07-15T06:18:31","guid":{"rendered":"https:\/\/trademark-registration.com.au\/?p=5454"},"modified":"2022-01-18T09:44:00","modified_gmt":"2022-01-17T23:44:00","slug":"intellectual-property-holding-company","status":"publish","type":"post","link":"https:\/\/trademark-registration.com.au\/information\/intellectual-property-holding-company\/","title":{"rendered":"Should an Intellectual Property Holding Company Own My Trade Mark?"},"content":{"rendered":"\n

Your intellectual property is a critical part of your business. This makes it essential to have the best practices<\/a> in place to protect it adequately. An intellectual property (IP) holding company is one way to control your IP portfolio, including your trade marks. To help you decide whether an IP holding company is suitable for your business, this article will take you through what an IP holding company is and the advantages and disadvantages of having such a company.<\/p>\n\n\n\n

What is an Intellectual Property Holding Company?<\/h2>\n\n\n\n

An IP holding company is a company whose primary purpose is to hold and manage IP assets. This is a common practice for major businesses, who may use holding companies for tax advantages or create a barrier between assets to protect the company\u2019s IP if they are part of any civil or criminal proceedings.<\/p>\n\n\n\n

Advantages of an Intellectual Property Holding Company<\/h2>\n\n\n\n

There are several advantages of having an IP holding company own your trade mark.<\/p>\n\n\n\n

1. Protect Your IP Assets<\/h3>\n\n\n\n

Having an IP holding company protect your IP<\/a> is a great way to protect all your IP assets, including your trade marks. For instance, saving a separate entity exclusively for your IP can help protect your IP from any issues relating to any companies that are using your trade mark as a licensee, creating a barrier between the issues themselves and the brand. This is particularly relevant for companies facing bankruptcy or insolvency issues because the IP will be kept separate from the main corporate entity.<\/p>\n\n\n\n

2. Minimise Tax<\/h3>\n\n\n\n

There are some tax advantages to having an IP holding company own your trade marks. For example, you can delegate your trade marks and other IP assets between the company group to help minimise tax. This is useful in situations where the company in question is already part of a sophisticated structure.<\/p>\n\n\n\n

3. Administrative Advantages<\/h3>\n\n\n\n

There are some administrative advantages to having an IP holding company own your trade mark. By creating a centralised place for your IP, maintaining your trade marks and monitoring their use is much easier. If you plan on licensing your trade mark to other companies, having an IP holding company can also make this easier. It can show the value of your brand, with all licensing information accessible in one place.<\/p>\n\n\n\n

Disadvantages of an Intellectual Property Holding Company<\/h2>\n\n\n\n

As well as the benefits of having an IP holding company, there are some disadvantages of having an IP holding company own your trade mark.<\/p>\n\n\n\n

1. Trade Mark Maintenance <\/h3>\n\n\n\n

Maintaining an IP holding company can be difficult. If you are a small corporation, adding another corporate entity to your business structure may cause unnecessary difficulties. Difficulties may particularly arise regarding reporting requirements for a company. However, this may be less of an issue for larger companies already part of an elaborate corporate structure.<\/p>\n\n\n\n

2. Trade Mark Enforcement<\/h3>\n\n\n\n

If an IP holding company owns your trade mark, you must enter a licensing agreement to use your trade mark. However, the Australian courts have seen increased difficulty with receiving damages for trade mark infringement<\/a> for licensees, particularly if you are not the exclusive licensee. Therefore, if you plan on entering some licensing agreements without being the sole licensee of your trade mark, you must consider this.<\/p>\n\n\n\n

Key Takeaways<\/h2>\n\n\n\n

Ultimately, the question of whether an IP holding company should own your trade mark is up to you. Therefore, you should consider the circumstances of your business. For example, some advantages of having an IP holding company own your trade mark include:<\/p>\n\n\n\n