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Sep16
Intellectual Property Ownership by Parent or Subsidiary

The following is not meant to be legal advice, and is provided for information purposes.

From an intellectual property perspective, having a single entity own legal title to an entire group's intellectual property can be advantageous, regardless of where that entity is resident or incorporated.  A group means a parent and its subsidiaries and affiliates. 

The main benefit of consolidated ownership of legal title in a single entity is that it can avoid the need to have more than one plaintiff in infringement actions, thus reducing legal issues and costs that might otherwise arise.

Another benefit of consolidated ownership of legal title is that it can reduce the cost of maintaining registration for registrable intellectual property by reducing administrative complexity.

There is generally no intellectual property advantage based on the jurisdiction of the single entity that owns legal title to all intellectual property.  Infringement claims are decided under the laws of the jurisdiction under which the intellectual property exists.  The ability to successfully prosecute infringement does not depend on the residency or country of incorporation.

From a foreign tax perspective, such as France, there is benefit in a parent company retaining worldwide legal title to intellectual property because it is one factor relevant to deemed liquidation risk associated with ownership by a subsidiary.

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