Tax & Accounting Blog

YOUR QUESTIONS ANSWERED #3: SIC CODES AND THE INHERENT RISKS OF CONDUCTING IP ANALYSIS

Global Tax Compliance, ONESOURCE, Transfer Pricing, US Income Tax Compliance September 10, 2012

For the third week, we’re addressing FAQs from our recent webcast “SIC Codes: Inherent Risks When Conducting IP Analyses.”  So far, we’ve responded to questions that came in from leaders such as licensing filing from the US SEC and why analysts still use SIC codes.  This week, we’d like to share another frequently asked questions on the complex topic of SIC Codes.

Q3: If searching by the industry in which the IP is exploited within these agreements, why not correct the SIC data point in your database?

A3: Filing companies determine their primary industry classification. ktMINE would not, and does not, change the integrity of the originally filed document and information. However, we will augment the agreement with summary details that help expedite searches such as industry.  ktMINE assigns the industry(ies) to each license agreement based on the transactions within the filed document, regardless the filed SIC Code. By having access to full, unaltered information along with carefully exacted indexing details, analysts have the documentation and tools need to perform a defensible analysis.

Tune in next week… to learn more about SIC Codes in the oil and gas industries.

Want better transparency into licensing transactions? Check out our ktMINE Royalty Rate Resource Guide for the most comprehensive license of intangible property by industry.

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