1. What does a patent protect?
A patent grants an exclusive right to practice and invention by excluding anyone else from doing or using whatever is covered in the claims.
2. What is the tax treatment of patents?
The costs of developing patents should be capitalized and then amortized.
3. What type of property are patents under the tax code?
Patents can be treated as intangible assets, and thus subject to amortization, under certain conditions spelled out in Publication 535 and IRC Section 197..
4. Are royalty payments tax deductible?
5. Who owns patentable inventions developed by independent contractors?
Generally independent contractors will own the intellectual property that they develop while working under contract, unless the terms of employment specify otherwise. See Rights of Independent Contractors, Employees, & Employers
6. Who owns patentable inventions developed by employees?
Employers generally own the intellectual property developed by their employees during working hours, unless an employment contract provides otherwise.
7. How detailed does a Provisional Patent Application have to be?
The invention must be disclosed in the Provisional Application so that the subsequent formal utility application can refer to its disclosure, i.e. so that there is no new matter.
8. How do I respond to a cease and desist letter?
See cease and desist letter. Also, respond after investigating claims of infringement.
