Exchange Control & IP
Many transnational transactions having IP as basis have at least some exchange control aspect. These aspects often relate to obtaining pre-approval for:
- the assignment of ownership in IP to a non-resident;
- the payment of royalties to an offshore source; and/or
- the manufacture of goods in the Republic under license from a foreign licensor.
It is not uncommon for a single transaction to require a combination of these approvals. In our experience, many people are unaware of these peremptory requirements until it is often too late.
In July 2012, our law underwent yet another significant upheaval, and the authorities have sent a clear message that exchange control regulation of IP-based transactions is here to stay. (This was reiterated in related developments in 2014)
We advise on the requirements in such transactions, and also assist in the preparations of all necessary applications.