Intellectual Property Rights
Intellectual Property’ is a generic term covering assets that are created from the exercise of the human mind and have no physical existence as such hence the reference to “intellect”. The assets generally belong to the creator, or a third party, such as an employer by virtue of a contract, and can be used in business to protect a market or to generate revenue by licensing, sale (by assignment) or even by being mortgaged. As one might imagine, intellectual property rights are by their nature very diverse, and with the relentless march of technology and the appetite of human beings to create, the list is increasing year on year. The strongest forms of rights are those which must be registered, such as patents, registered designs and registered trademarks. The statutes which are in force to provide the framework for their protection set out clear standards and criteria for registration and procedures for enforcement.
Unregistered rights such as copyright, design right and database rights still benefit from the existence of a statute providing for their enforcement, whilst the rights of ‘passing off’ and protection for valuable know-how must rely upon common law for their protection, in the latter case by breach of contract.
Tax Benefits for IP rights in Cyprus
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Since January 2012 statutory amendments in Cyprus Intellectual Property Law have constructively created tax benefits for Cypriot resident companies on net and direct expenses.
Specifically they are exempted by a flat 80% from income tax for profits generated out of worldwide royalties, profit generated from the disposal of IP assets and rights. The same tax exemption covers any expenditure of a capital nature for the acquisition or development of IP and effectively it can be claimed as tax deductible in the year in which it was incurred and for the four immediate following years. The above statutory benefits and tax exemptions are also available for IPs acquired or developed before January 2012.
Transitional arrangements for the Cyprus IP Box will also protect persons who entered the existing IP Box prior to 2/01/2016 and shall enjoy for a period of 5 years an 80% exemption of taxation on the gross income from the use of intangible assets (royalties) including trademarks, business names, image rights and other intellectual property rights used to market products and services. However these assets are no longer qualifying for tax exemption purposes.
For a thorough analysis as to the amendments of the applicable legislation and the new tax rules that affect the Cyprus IP Box please download here.
Below is a non – exhaustive list on a range of IP services PAHALAW can offer to register and protect your IP rights and assets in a comprehensive and fast track legal and corporate manner:
- Registration, subsequent designation and renewal of Cyprus, Community or International trademarks through the intellectual and Industrial Property Department in Cyprus , EUIPO and WIPO
- Filing of a Response to a preliminary Objection to an application for trademark registration at the intellectual and Industrial Property Department in Cyprus,EUIPO and WIPO
- Passing Off and Unfair Competition legal services
- Trade mark oppositions, cancellations and counterfeiting actions
- National / EU / International registration of a Trade Name and Logo
- Patent registration, renewal & protection
- Trademark watching and infringement services
- Corporate statutory compliance matters
- Search and investigations services
- Litigation including arbitration proceedings on existing IP rights
- Counseling on franchising and licensing
- Domain Names
- Registered Designs and Design Rights
- Protection on Copyright & Software works
- Database Rights
- Regulatory Data Exclusivity
- Know-How/ Trade Secrets / Recipe protection
- IP custodian and nominee services
- Existing IP – tax efficient transfer to Cyprus IP Company & IP renewal services
- Tax advice on income tax exemption for profit generated worldwide from IP owned by Cypriot resident companies
- Formation of tax effective corporate structures in Cyprus and offshore