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Is the trademark the asset of a company, which has other benefits such as the identification of its products or services amongst strong competition or the presentation of a company/group? Is it possible to transfer the trademark, in the case when it is not in evidenced in the company’s balance sheet? Can we use the trademark for fixing the problem of transfer pricing? Is it necessary to charge licence fees to individual members to use the trademark within the group?
The trademark, in the case when it is in evidenced at the Industrial Property Office is the legitimate asset of the company. The company usually pays for the registration, assigns it into the company’s costs for the relevant period. However, if the trademark was not bought, but the trademark was created through the company´s own activity, the trademark becomes the asset of the company afterwards, but is not evidenced on the balance-sheet. In the same way, the eventual costs for the proposal of the trademark are assigned into the costs for the relevant period, for example, by an advertising or marketing agency.
It is possible to transfer the trademark for a payment or deposit other than in cash, even when the trademark is not in evidence. It is not entirely unusual that its owner is aware of its true value. In this case, it is best to address an appraiser or a specialist in the field of appraising. Generally, the best way how to appraise a trade mark is through a comparison, but only if there is an adequate amount of transparent database values of comparable trademarks.
It is possible to use a trademark in case the holding company covers the presentation and identification of the whole group of companies with its own trademark and income needs, with which the company will finance the costs of holding company. In this case, the best way is to address the appraisers and specialists for appraising, who set the amount of licence fees. This licence should be the same like the usual fee in the case of the connected persons.
We have to see this problem from another view point. In the case when the parent company owns a trademark of the group, or the products’ trademarks, which are used by the subsidiaries for the production and sale, the parent company should charge a licence fee from its subsidiaries. From the perspective of the financial authorities, it is not appropriate to offset the services, especially services with a consideration other than in cash. It is always more appropriate to quantify the services, even if they go against each other, and do not provide any space for doubt for the financial authorities.
If you have a trademark and would like to use it for optimisation, do not hesitate to contact us. Pay attention to the credits, free benefits and intermediary fees from the view of the financial authorities, which may unwanted additional attention to the licence fees.