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Taxing Apple's $119.6 Million Patent Verdict Against Samsung
Apple’s jury verdict against Samsung is only the latest episode of the patent slug-fest between the two tech giants. Apple accused Samsung of violating smartphone patents, though to a smaller extent, Apple was found to have infringed Samsung patents too. While $119.6 million is nothing to sneeze at, it’s a tiny fraction of the $2.2 billion Apple sought. In 2012, a different jury ordered Samsung to pay Apple $930 million, but Samsung has appealed.
It isn’t just companies like Apple and Samsung that engage in these high-stakes IP fights. Even little guys, mom & pop companies and inventors can get embroiled too, as plaintiff or defendant. From initial filing, licensing, litigation and sale, billions of dollars turn on patents, and that means taxes.
If Apple ever collects its millions, it is ordinary income, and if Samsung ever pays, it’s deductible. But smaller companies often worry whether their patent recovery is capital gain taxed a lower rates. For individuals and pass-through entities (S corporations, partnerships and limited liability companies) the difference is big.
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(These latest Intellectual Property (IP) news and events presented here, are prepared and compiled by us, the World Patent & Trademark Law Office (WPTO),for your reference and information)