Tax & Accounting Blog


Global Tax Compliance, ONESOURCE, Transfer Pricing, US Income Tax Compliance September 17, 2012

This week, we’ll address the final and most popular FAQ from the webcast: SIC Codes: Inherent Risks When Conducting IP Analyses.

Q4: In my experience in the Oil and Gas Industry, there are more Oil and Gas SIC Codes than you had listed on the SIC Code v Industry Comparison slide. Why did you not include all of them?

A4: In many situations, licensing information is not published in the public domain for each and every SIC code. Or these agreements may well be in the public domain but were filed without an SIC code, which is not uncommon. *Both points underscore the fact that SIC Codes can be a risky criteria choice for search methodologies. If one were to search under the Oil and Gas Industry option in ktMINE, any and all relevant agreements would appear as a mandatory step in our review process is to assign industry(s) to each agreement that map to the IP being transacted. Utilizing the industry filter will ensure that you are not missing any agreements related to the IP of your target industry.

*Please note that the SEC uses only a subset of the SIC Codes (just over 430) that were formulated in 1987. These SIC codes are used by the SEC and the Division of Corporation Finance to assign which office reviews a Company’s filings and not to identify the IP of a Company.

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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Have questions of your own? Share them below or tweet @ktMINEglobal!



Missed some of our responses to your FAQs on the complex topics of SIC codes? Check out previous responses:

  • Why Analysts Still Use SIC Codes
  • Why a Percent of the Royalty was Redacted
  • Primary Industry Classifications