The Intellectual Property Shuffle

Subsidiaries seem to be the bane of my existence lately. The following story is getting old.

A company has what seems like a good idea. It gets people to invest.

The intellectual property (IP) is registered to, or transferred to, a subsidiary, which is then spun-off. The newly independent company then transfers the IP to an off-shore company. The off-shore company then licenses the IP to the original firm.

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