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Special purpose vehicles

Special purpose vehicles

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Special purpose vehicles (SPVs) can be established to contain intellectual property (IP) supporting brands. Intangible Business values intellectual property for transfers to special purpose vehicles, and as a basis for subsequent charging by special purpose vehicle for the use of the IP.

Placing a brand in a special purpose vehicle can have a number of benefits. The management of the IP can be improved greatly as it helps focus on the commercial development of the brand itself. This is articulated quite directly as different business units will have to pay for the use of the brand. This requires them to appreciate the brand more as they are directly paying for its use.

A special purpose vehicle can also be used to ring-fence intellectual property, examples being when it is used as security to raise finance and to isolate it from other business risks such as insolvency. Another use is to transfer IP value to an SPV which is then used as security by pension funds to offset pension deficits. Another benefit of such special purpose vehicles is that there can be tax benefits depending on the tax rules for taxing income and allowing IP amortisation.

Valuing IP for special purpose vehicles requires an in-depth appreciation of the commercial reasons for the valuation and the intellectual property as well as the potential for future commercialisation. Intangible Business is well positioned to deliver this with its wealth of experienced and qualified people.

If you have any questions, or would like us to value IP for transferral to an SPV, please call us or send us an email.