IP Holding Company

An IP holding company exists to hold intangible assets on behalf of one or more other companies but does not necessarily manufacture products or supply services based upon the intangible assets held. These companies may exist to simplify administration, or for tax reasons. Many multinationals establish IP holding companies in tax favourable locations or U.S. states (Switzerland and Delaware are two examples) and then assign or transfer all of the IP rights for the company in its entirety to this new entity. The IP holding company then has the task of granting licenses to the different divisions of the multinational company as well as to third party licensees.

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This term was contributed by Ruth Hennessy.