Registry Detail

262

Ruling

09/10/2000 11:03:00

In which category of CPC Version 1.0 and ISIC Revision 3 should we classify services generated by the use of trademarks, patents etc? .

Recommends a new CPC class (CPC V1.0 class 733) on "Leasing or rental of non-financial intangible assets".

As of 7 November 1998, a new category at the 3-digit (group) level has been added to CPC Ver.1.0. The description for this new group is provided below. CPC 733 Leasing or rental of non-financial intangible assets This group includes: - Leasing of the right to royalties paid for the use of patents, trademarks, copyrights and other non-financial intangible assets, such as leasing of brand names and payments received for the use of brand names. The corresponding ISIC class for these services has been identified as: ISIC 6599 Other financial intermediation n.e.c. Although the description included in ISIC Rev.3 of ISIC class 6599 at present does not specifically mention leasing of non-financial intangible assets, the correspondence of ISIC 6599 to the new CPC 733 group has now been established. The underlying principles of the 1993 SNA support the treatment of royalties related to the use of patents, trademarks etc. as payments for services. In particular, the principles are stated in paras. 7.92, 14.114 and annex I. para. 69 of the 1993 SNA. The latter paragraph states that "royalty and similar payments in respect of patent licenses are considered payment for services and not property income as in the 1968 SNA. The same treatment is applied to payments for services of trademarks and franchi sing in respect of other non-produced intangible assets." Note: See related items under Registry ID# 426, 608, 705, 931.