Fundamental changes in technology and in the economic landscape are making the system and the legal framework relating to the protection of Intellectual Property developing rapidly. As a result of this development, in Cyprus, which is a fast growing economy with huge commercial development as well as in the E.U. in general the industry faces challenges that are far more complex.
Cyprus, as a Member of the European Union has harmonized its national laws, regulations and procedures and has made them effective according to the EU legal structure and institutions.
The European Union possesses two important bodies to carry out the mission of protecting intellectual property: the Office for Harmonisation in the Internal Market (OHIM), which is responsible for the registration of Community trademarks and designs, and the European Patent Office (EPO). Cyprus is member to the OHIM.
Intellectual Property, very broadly, means the legal rights which result from intellectual activity in the industrial, scientific, literary and artistic fields. In order to protect those rights, Cyprus has adopted Law to protect I.P. rights for two main reasons. One is to give statutory expression to the moral and economic rights of creators in their creations and the rights of the public in access to those creations. The second reason is to promote, as a deliberate act of Government policy, creativity and the dissemination and application of its results and to encourage fair trading which would contribute to economic and social development.
A major advantage of registering an I.P. right in Cyprus resulting from a recent amendment (in May 2012) made in the Income Tax Law, relating to the taxation of I.P. assets in Cyprus. According to the new regime, 80% of the net profits resulting from royalties are exempted from corporate tax (deemed deduction). The remaining 20% is subject to the standard 12,5 % corporate tax. It should be noted that, the taxation also applies on the occasion when the I.P. right might be sold.
N. Mouktaroudes and Associates LLC deals with every aspect of intellectual property rights, patents and trademarks. We expertise in: