Essentially, a patent is a legal document granted by a government agency that gives the patent holder exclusive rights to an invention for a specified period of time. These inventions can range from pioneering technologies to new processes, designs or even plant varieties. Patents serve as a shield against competitors and give the inventor the exclusive right to produce, use or sell the patented invention.
In addition to protecting intellectual property, they offer significant tax benefits that can improve your bottom line.
The innovation income deduction is an example of a tax benefit for companies with patented innovations, reducing tax liabilities and increasing profitability. This measure is an additional incentive for companies investing in innovation through intellectual property. Income from innovation can be deducted up to 85%. As this measure applies not only to income from patents, but also to income from IT developments in an R&D context, it contributes to the development of the knowledge economy.
A strong IP culture encourages investment in research and development (R&D) by providing assurance that the resulting innovations are protected and potentially profitable.
