Trademark protection in USA dates back to the colonial period when American Common Law recognized some Intellectual Property rights. This tradition has its trace in history, because many American companies thrive on their marketing strategies. These companies know the importance of registering and protecting their trademark in order to promote their brand.

For this reason, registering a trademark in USA is rather quick, cheap procedure compared to other countries, and even unregistered trademarks may benefit from a certain legal protection if they have already been used in commerce. If this is your case, you must be able to prove that your use of the trademark is well established in your interstate commercial activity. This is not always easy to prove and it is not cost-effective to take position against your competitor if you skipped your trademark’s registration stage.

At a federal level, the United States Patent and Trademark Office (USPO) manage trademark registration in USA. Because of the legal value of the commercial use of trademarks, it is feasible to enter the American market before applying for a registration. Nonetheless, it is also possible and it is often advisable to file the so-called 'intent to use' trademark application. You can file an intent-to-use (ITU) application if you make a sworn statement of intention, but be aware (!) that in case of legal dispute you must prove your efforts for 'using in commerce' your trademark soon after the application date. Later, with a series of specific procedures, you should be able to convert the (ITU application into the ordinary one (use-in-commerce application).

Before any application, is important to conduct a thorough research of possible trademarks that could be confused with yours. Attention! This research is under responsibility of the applicant. USPO offers a search system (Trademark Electronic Search System, TESS) that can be used conducting this research, but it must be kept in mind that the search engine does not take into account trademarks that are unregistered at federal level, but are used in commerce, which can even prevail over registered ones.

Descriptive marks can be protected (so-called weak protection) only if they are considered distinctive because of their use in commerce for more than 5 years. The federal Office adopts strict parameters to assess the Class of products or services to which your trademark is related. In order to avoid likelihood of confusion or many other grounds for refusal of registration that may be found by the Office, you should consider asking for legal advice.

Intellectual property refers to a creation of numerous intellectual units, such as literary and artistic works, inventions, designs as well as names, images and symbols used in commerce, for which a monopoly is assigned to the owner or creator of the said units. A related term is intellectual property rights, such as trademarks, patents, copyrights and industrial design rights, which enable the owner of the intellectual property to earn financial benefit and recognition for their products.

Intellectual property can be created by private persons or legal entities. Typically, companies that own intellectual properties find it beneficial to set up an Intellectual Property Holding, in which all these assets are registered and licenced for royalty income generation. Since intellectual property can often be among the most valuable assets of a company, choosing the right jurisdiction of an Intellectual Property Holding requires a careful consideration in order to ensure the most beneficial environment for the company and its assets. Three main aspects to consider before choosing the jurisdiction for incorporation of the Intellectual Property Hold are quality asset protection, legal framework and tax optimisation possibilities.

Benefits of having an IP structure on Cyprus
Cyprus has become an important player in the field of Intellectual Property Holdings since it introduced new tax legislation on Royalties in 2012. In addition to a beneficial tax regime, Cyprus can offer its companies a protection afforded by member states of the EU and all major Intellectual property treaties and protocols. Cyprus also has managed to link its world-wide network of double taxation treaties with its outstanding shipping, holding and intellectual property regimes and offers one of the lowest corporate tax rates in the EU – 12.5%. Additional benefits of choosing to register an Intellectual Property Holding in Cyprus:

No withholding tax on payments of interest, royalties and dividends;
No taxation on profits generated by the sale of securities and no minimum holding period;
Unilateral tax credit relief.
Cyprus has also developed a strict Anti-Money Laundering legislation and is consistently positioned in high rankings among the EU Member States for compliance with AML practices and guidelines.

In order for an Intellectual Property Holding registered in Cyprus to benefit from the favourable tax regime, it must be protected by one of the following laws:

Patent law – in Cyprus, the responsible body of issuance of national patent certificates is the Patent’s office of the Department of the Registrar of Companies. In the European Union, patent certificates are issued by the European Patent Office. International Patent Certificates are issued by the WIPO – World Intellectual Property Organization.
Trademark law – domestically, protection of trademarks is achieved through registration with the Trademarks’ office. In EU, protection of trademarks is organized through EU regulations on the Community Trademark and the Community Design registration.
Cyprus’ tax regime
The favourable tax regime for Intellectual Property Holdings is displayed in three possible activities connected with the intangible assets: when income is generated from any form of qualifying intellectual property rights; when income is generated through sale of any form of qualifying intellectual property rights; and providing generous allowances for development or acquisition of intangible assets:

Tax legislation on royalty profits – when receiving royalties for an intellectual property, 80% of the royalty is considered an expense by the Cypriot tax legislation, therefore no tax needs to be paid for the largest part of the royalty profits. The remaining 20% is subject to the traditional corporation tax rate of 12.5%. Additionally, before determination of the royalty profit, it is allowed to deduct from the royalty income all expenses that have incurred during the production of the royalty income.
Tax legislation on profits from sale of a qualifying Intellectual Property Rights – The tax legislation on Intellectual Property Rights states that in case a company decides to sell all or part of its intangible assets, it will also enjoy the same favourable taxation as discussed above – 80% of the profit generated by the sale of the qualifying Intellectual Property Rights is deemed as expense and just the remaining 20% is subject to the traditional corporation tax rate of 12.5%. This provision allows companies to be sure that there is a tax efficient solution in case they decide to sell their Intellectual Property Rights.
Tax legislation on development or acquisition capital allowances – companies registered in Cyprus are able to write off the total sum of the capital expenditures emerging during the acquisition or development of Intellectual Property. This can be done over the first five years of the use of the intangible asset – in a straight line of 20% starting from the first year and continuing throughout the subsequent four years of the usage of the asset. The described capital allowances are tax deductible, which means that the actual amount of tax paid during the first five years of the asset’s life is even smaller.

The development of telecommunications and economic globalization have made it possible for interested investors to set up companies all over the world. With proper research, financial investment and legal backing, business ventures can be safely incorporated in almost any country in the world. Building an international business used to be a complicated entrepreneurial venture, but today it is commonplace with the help of experienced legal and business advisors.

The advantages of founding a company abroad are as numerous as they are obvious. Many countries offer specific locational advantages, ranging from natural resources and well-established infrastructure to beneficial laws and regulations that encourage growth in a particular industry. Likewise, it can be difficult to start a business or an acquisition in your own country due to adverse situations: political or regulatory environment, lack of resources and more. In this situation, it makes sense to consider an overseas option that offers greater opportunities for growth, development, and success.

Company registration in Albania
When starting a business in Albania, an interested investor must conduct due diligence on legal procedures, international regulations and sufficient investments for success. It is crucial to understand cultural, social and political factors that influence starting and growing one's business. Failure to do so may result in unintended consequences. Poorly researched and toneless international launches often end in disaster as time, money and energy is wasted due to poor planning.

Legal Documents
Every country in the world presents its own intricate challenges when it comes to starting, developing and maintaining a business. Owners, financiers and investors must make these commitments with the support of a knowledgeable and experienced legal team. Only someone with in-depth knowledge of local and international corporate law will be able to set up an overseas business while avoiding the pitfalls that plague many new businesses.

Additionally, smart business people can consider ways to invest in foreign companies without actually starting their own businesses. In these situations, it is still beneficial for the investor to partner with a knowledgeable global economics and litigation advisor. International investments create a truly diverse portfolio that offers growth opportunities that were unthinkable decades ago.

Potential investors, venture capitalists and entrepreneurs should consider the existing infrastructure in Albania when planning to start a new business. While extensive infrastructure and systems can help make the process of starting a business a smooth one, it could also represent market saturation and reduced growth potential. On the other hand, a lack of infrastructure is often a major obstacle to growth; However, the lack of infrastructure points to a clear market opening for a creative and efficient new business.

Bank account opening in Albania
In connection with the establishment of a company, it is necessary to open one or more bank accounts in Albania. Confidus Solutions offers the ability to open a bank account in over twenty jurisdictions, making it easy for you to avoid challenging language barriers or bureaucratic hassles.

Given that within the European Union there are no withholding taxes on IP royalties between member states, we can suggest a number of countries where royalties are particularly advantageous.

CYPRUS
The intellectual property royalties tax regime in Cyprus has changed as a result of the recommendations of the Organization for Economic Co-operation and Development (OECD) Action Report 5 and the Ecofin Council conclusions published on 8 December 2015. Legislation has been changed to limit the companies that can benefit from research and development (R&D) exemptions, but the tax rate in Cyprus is still one of the most favorable in the EU for foreign companies using Cyprus intellectual property want to license -resident companies (intermediaries), where this right is then sub-licensed to the end user. Overall, the effective tax on IP royalty income should be less than 2.5%.

IRELAND
In 2015 Ireland introduced an effective corporation tax rate of 6.25% on intellectual property income based on an allowance for research and development costs borne by the company. By linking the two components in this way, Irish law encourages companies to conduct R&D directly within the EU - leading to the creation of intellectual property - while discouraging them from acquiring licenses without directly committing to R&D.

BELGIUM
Belgium has introduced a tax system that favors those with income from acquired copyrights. This tax regime can have many different applications and can be used to protect artworks as well as a useful tax break for IT developers. Income from IP rights royalties is taxed at 15%. This income is not taken into account when calculating social security contributions. In addition, these taxes are reduced by 50% for imports due to the application of standard import costs. The first €15,000 that a copyright owner earns in a year is therefore taxed at 7.5%, and the next €15,000 at 11.25%. This tax system applies to people with a total annual income of up to 56,450 euros.

LUXEMBOURG
In general, corporate tax in Luxembourg is 29.22%, but for IP licensing income it can be as low as 5.8%. This is due to an 80% corporate income tax exemption. Interestingly, this exemption also applies to companies that have registered a patent for use in connection with their own business, which then calculate a notional net income as if they had received the licensing income.

ITALY
Italy is a larger market compared to the other countries discussed and can be a very attractive place for a company to invest in R&D since 2015 companies have been able to deduct intellectual property income from their taxable income base. The tax deduction was set at 30% in 2015, 40% in 2016 and 50% from 2017. Businesses will therefore enjoy a significant tax rebate by reducing their taxable income.

THE NETHERLANDS
Since 2010, IP income has been taxed at only 5% in the Netherlands. Except for patents, there is no income limit. Patent holders can actually have access to this tax regime if their share of the expected revenue is between 30% and 70%, taking into account the total combined revenue from patents and other sources. These rates also apply to foreign companies owning intangible assets or companies that have received research and development accreditation from the Dutch Ministry of Economic Affairs if they are owners of software IP or trade secrets. The only other caveat to this favorable tax regime is that it doesn't apply to marketing and branding-related assets.