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Franchisors and IP Licensors Can Save State Income Taxes
On Oct. 23, the New Jersey tax court issued a decision that most tax experts expect will change the direction state income taxation has been taking for the past decade. The new direction will reopen an opportunity for franchisors and other licensors of intellectual property such as trademarks and patents to avoid paying state income taxes by using intellectual property holding companies based in tax-haven states such as Delaware and Nevada.
The case of Lanco Inc. v. Director, Division of Taxation holds that New Jersey may not impose its income tax on a corporation whose only contact with the state is that it receives license fees from a company using the licensed marks to conduct business in New Jersey. Lanco Inc. is the licensor of Lane Bryant retail outlets.
The relevant Lane Bryant facts are indistinguishable from those of Toys “R” Us, whose Delaware holding company was the basis for the South Carolina Supreme Court's decision in Geoffrey Inc. v. South Carolina Tax Commission. Both parent companies used Delaware holding companies to hold their trademarks and other intellectual property. Both Delaware companies licensed their IP to retail stores operating as separate corporations in other states. Both Delaware companies received royalties from the operating retail units, free of Delaware income tax under '1902(b)(8) of the Delaware Code. The operating retail units of both companies deducted the royalties they paid to their Delaware sister companies. The South Carolina and New Jersey departments of taxation both tried to assess their state income tax on the royalty income received by the Delaware holding companies.
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models
Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.
Hyperlinked Documents: The Latest e-Discovery Challenge
As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.
Identifying Your Practice's Differentiator
How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.
Risks and Ad Fraud Protection In Digital Advertising
The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.
Turning Business Development Plans Into Reality
This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.