In a strong victory for common sense, the judge firmly rejected the SBE`s arguments. The definition of a ATT is not ambiguous, uncertain or ambiguous, he said, and the clear importance of the status must be followed. In addition, according to the judge, prior to the adoption of the amendment, SBE`s Legislative Analysis Department concluded that the broad legal definition of a TTA would apply to works of art. The argument that a “technological” character must be transferred in order for the agreement to be classified as a TTA was also categorically rejected on the basis of the clear text of the statute. 2. The tax applies to any amount derived from the sale or storage, use or other use of physical personal property transferred by a patent or copyright, where the transfer is not made as part of a technology transfer contract. WSW`s decision is good news for anyone who buys art or other copyrighted works or who is licensed. As long as your sales or licensing agreement fulfills all the qualifications of a technology transfer contract, the value of intangible personal assets — often the largest element of the agreement — is not taxable. And while careful planning is always advised, it`s very likely that your purchase or licensing agreement already contains the basics needed to qualify as a technology transfer contract. The State argued that the fact that software licenses were made available in tangible form means that transferred intellectual property rights should be taxable. However, the court explained that the California legislature had adopted a special regime for software or intangible assets that were transferred in accordance with the ATT.
The regulation does not define what the term “use of the process” actually means. Instead, we try to explain the term with an example. The example concerns the rental of a medical device (equipment) and the transmission of a distinct interest in a patent for a process located outside the device used, used or manipulated. In addition, the regulation specifies (in essence) that the separate patented process that is the subject of the ATT must be something that is not integrated into the internal design, assembly or operation of the equipment. (4) “assignment or license,” a written transfer of a patent or copyright to a person who is not the original holder of the patent or copyright when the transferee or the taker is prohibited, without the assignment or license, from using the copyright or patent under the technology transfer contract.