In their zeal to save on taxes, many companies isolate their intellectual property in wholly owned subsidiaries called intellectual property holding companies (IPHCs). The IPHC landscape, however, is changing. Recently state actions have reduced the tax benefits of IPHCs, impacting the business and legal ramifications of managing intellectual property through a holding company.
Copyright 2013 by IMA®, Montvale, N.J., www.imanet.org, used with permission.
Cowan, Mark J. and Newberry, Warren Jr.. (2013). "Reevaluating the Intellectual Property Holding Company". Management Accounting Quarterly, 14(3), 25-33.