What is the tax regime for licensing and sublicensing your company's patent?
What is the tax regime applicable to patents?

In accordance with the provisions of article 39 terdecies , 1 of Code général des impôts, the long-term capital gains regime, which provides for a reduced rate of taxation, is applicable to licensing and sub-licensing transactions relating to patents and patentable inventions.

Generally speaking, the application of the long-term capital gains regime presupposes that the patents and rights concerned :

• are valid, which means that they have not fallen into the public domain;

• have the character of fixed assets;

• and have been held for at least two years when acquired for valuable consideration.

If these conditions are not met, royalties from the use of patents and similar rights are taxed at the standard...