Exclusive Patents and Trademarks and Subsequent Uneasy Transaction Comparability: Some Transfer Pricing Implications

Abstract

Intangible assets are intrinsically difficult to evaluate and compare; due to their immaterial nature, they are frequently negotiated within multinational groups and thus become sensitive to transfer pricing issues. OECD guidelines address the complex problem of trying to adapt standard transfer pricing methods to specific circumstances. Arm's length comparisons are particularly problematic for exclusive and specific patents and trademarks and also as a consequence of the intrinsic confidentiality that concerns their transactions.