Question 1

What types of IP can be licensed in Canada?

Accepted Answer

Under Canadian law, you can license copyrights (Copyright Act), patents (Patent Act), trademarks (Trade-marks Act), industrial designs, and trade secrets.

Question 2

What are moral rights in Canadian licensing?

Accepted Answer

Under the Canadian Copyright Act, creators have moral rights (right of attribution, right of integrity) that cannot be assigned but can be waived. A licensing agreement should address moral rights waiver.

Question 3

Are royalties subject to GST/HST?

Accepted Answer

Yes, royalty payments for IP licensing are generally subject to GST/HST. Additionally, withholding tax of 25% applies to royalties paid to non-residents unless reduced by a tax treaty.

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