It looks like rap musician Dr Dre may have sold his Beats Electronics headphones company at the perfect time.

Apple was given another patent headache in recent weeks as Bose announced that it will sue Beats for allegedly infringing on its patented noise-cancellation technology.

According to reports, Bose has accused Apple’s new $3 billion acquisition of breaching 5 separate patents and has filed a complaint with the US International Trade Commission. Apple is no stranger to patent disputes, having been embroiled in many high profile cases with rivals such as Samsung, HTC and Nokia.

This latest clash of technological titans is another reminder about the importance of protecting your intellectual property. After all, no-one wants to see their killer idea snatched up by a wily competitor.

But there are other often overlooked benefits of patenting the fruits of your creative labour. Patents not only allow you to keep control over your inventions but can also get you relief on your corporation tax bill.

The Patent Box scheme

The Patent Box allows companies to apply a reduced 10% rate of corporation tax rate on profits earned from their patented inventions and innovations.

To be eligible to claim the relief your company must:

·         own a patent granted by the UK Intellectual Property Office, the European Patent Office or patent offices in certain countries in the European Economic Area

·         have contributed to creating the patented invention

·         make a profit from the patent

·         pay corporation tax.

You may also be able to benefit if you have the rights to exclusively license-in a patent held by another company.

How to benefit from the Patent Box

You can make an election to use the reduced corporation tax rate either through your company tax return or by writing a separate letter to HMRC. This must be done within 2 years of the accounting period in which the patent profits were made.

Taylor Edward accountants are specialists in this area. Contact us on 01753 892 815 or email info@tayloredward.com to find out how we can help reduce your corporation tax bill.