The Singapore government recently released new guidelines for writing-down allowances for intellectual property rights. In the past, companies have been given the opportunity to write down a portion of their assets in order to share some of the total cost burden with the government. The new guidelines have created more flexibility for companies to take advantage of this offer, and decreased filing requirements as well.
What is a Writing-Down Allowance for IPRs?
The Singapore Ministry of Trade and Industry (MTI) has released new guidelines on writing-down allowances for intellectual property rights (IPRs). These new guidelines will apply to all entities in Singapore, including businesses, individuals and other entities.
Under the new guidelines, an entity will be allowed to writing-down allowances for IPRs based on the value of the IPRs as of a certain date. Entities will be allowed to write down their IPRs up to 50% of their original value. The new guidelines also specify that an entity must provide evidence that it has written down its IPRs in accordance with these guidelines.
The new guidelines are designed to help entities reduce their exposure to intellectual property infringement risks and shield them from potential litigation costs. They are also intended to help businesses become more efficient and competitive by making it easier for them to license or sell their IP assets.
How does it work?
Singapore has released new guidelines on writing-down allowances for intellectual property (IPR) rights holders. The new guidelines aim to provide a standardized and simplified process for calculating allowances and to streamline the administration of IPRs. The guidelines also introduce a new scheme under which rights holders can receive an annual cash allowance instead of claiming any ownership interest in their IPRs.
Under the new guidelines, rights holders will be required to write down their allowances in a declaration filed with the relevant authority. The declaration must be filed every year, regardless of whether any actual adjustments are made to the allowance amounts. Rights holders will be able to claim an annual cash allowance instead of taking any ownership interest in their IPRs. The amount of the allowance will be based on factors such as the number of registered trademarks, patents, or designations in use, and the value of commercial exploitation rights granted by the right holder.
The new guidelines are likely to simplify the process for calculating allowances and help rights holders manage their IPRs more effectively. They are also likely to make it easier for patentees and trademark owners to receive payments from licensees or other parties who have acquired commercial exploitation rights under their patents or trademarks. You can avail bookkeeping services to make the process easier for you.
Who can apply for a Writing-Down Allowance for IPRs?
If you are an owner of intellectual property rights, you may be eligible for a writing-down allowance in Singapore. This allowance is designed to help owners of IPRs realize a fair value for their assets. The amount of the allowance will depend on the type and value of your IPRs.
To be eligible for a writing-down allowance, you must meet two conditions: first, your IPRs must be registered with the Intellectual Property Office of Singapore (IPOS) and second, they must have been acquired before 1 January 1994. If your IPRs were acquired after 1 January 1994, you may only qualify for a partial writing-down allowance.
There are several eligibility criteria that apply to different types of IPRs. For example, patents and trademarks are usually more valuable than copyright protection. Accordingly, the maximum amount that can be written down is higher for these types of assets. The table below shows the maximum allowed write-downs for different types of assets.
If your IPRs fall into one or more of the following categories, you may be entitled to a full or partial writing-down allowance: domesticated plants and animals bred in Singapore; products incorporating Singaporean technology; research results obtained at any institution registered with IPOS before 1 January 1994; scientific papers published in any journal indexed by the Directory of Open Access Journals before 1 January 1994.
To qualify for a full writing-down allowance, you must meet all of the following conditions: your IPRs must be registered with IPOS; they must have been acquired before 1 January 1994; and the fair value of your IPRs must be lower than the original cost. If your IPRs qualify for a partial writing-down allowance, you must only meet one of the following conditions: your IPRs are registered with IPOS; they have been acquired before 1 January 1994; and their fair value is lower than 50% of their original acquisition cost.
If you are applying for a writing-down allowance for IPRs, it is important to contact the IPOS office in Singapore to verify that your assets qualify. The office will then provide you with forms and instructions on how to submit your application.
How do you know if your application has been approved or not?
If you have submitted an application for registration of an invention with the Intellectual Property Office (IPO), and after a reasonable period of time have not received a response confirming that your application has been approved, it is advisable to contact the IPO directly to inquire about the status of your application.
If you have registered your invention with the IPO, and subsequently find that you need to make changes or updates to the information included in your registration, you can submit a request for amendment through the IPO website. However, note that amendment requests must be submitted at least six months before the anniversary of the date on which your original registration was made.