The DEMPE Concept and Intangibles: Definition, Practical Approach and Analysis in the Context of Licence Model

About this book:

The DEMPE Concept and Intangibles is a significant book elucidating in depth the DEMPE functions (development, enhancement, maintenance, protection and exploitation) concept in view of its application to intellectual property. Under the widely applied rules of the OECD Transfer Pricing Guidelines, allocation of the returns from the exploitation of intellectual property should be apportioned among all entities that are instrumental in the profit-generating value of an intangible. In this context, the book elaborates upon exactly how to understand and apply the DEMPE concept in order to properly assess transactions involving intangibles and to attain an appropriate transfer pricing outcome.

What’s in this book:

Parsing the legal, economic and business management aspects of multinational enterprise activities, the book furnishes a comprehensive understanding of both the theoretical and practical aspects of the DEMPE concept. The following issues and topics have been detailed:

• role of the DEMPE concept within the framework of international tax law and transfer pricing;
• interplay of the DEMPE concept with the arm’s length principle;
• full description of each DEMPE function and analysis in the light of possible tax and transfer pricing consequences;
• modes of application of the DEMPE concept which can be directly implemented in practice; and
• additional tools (e.g., value chain analysis or RACI matrix) useful in applying the DEMPE concept.

The book also expounds on the interplay between the DEMPE concept and the licence model in its various structural variations.

How this will help you:

Considering that intangibles amount to 84% of the market value of the S&P 500 companies and that over 80% of global trade transactions can be connected to value chains of multinational enterprises – and recognizing the dearth of guidance heretofore on the application of the DEMPE concept – tax advisors, corporate counsels, tax authorities, and academics worldwide will highly appreciate and benefit immensely from this unique and pragmatic book.