Archive for the ‘Intellectual Property (IP)’ Category

Ontario Budget 2018 Highlights

The Ontario 2018 Budget, tabled on March 28, 2018, projects a growing deficit over the next three years and is predicted to resume a downward trend in 2022 with accumulated deficit expected to decline from 23.2% of gross domestic product (GDP) in 2017-18 to 22.1% by 2022.

The Ontario Budget proposes several measures and investments that impact businesses, including:

Innovation

  • An increase to the Ontario Research and Development Tax Credit (ORDTC) from 3.5% to 5.5% for eligible R&D expenditures over $1M (per taxation year) incurred on or after March 28, 2018.
  • Enhancements to the Ontario Innovation Tax Credit (OITC) for eligible R&D expenditures incurred on or after March 28, 2018 based on the ratio of R&D expenditures to gross revenues. Companies with a ratio of R&D expenditures to gross revenue of:
    • 10% or less will continue to claim the OITC at a rate of 8%;
    • 10-20% will be eligible for an enhanced OITC rate that will increase from 8% to 12% on a straight-line basis; and
    • 20% or more will be eligible to claim the OITC at a rate of 12%.
  • Expansions to the Ontario Interactive Digital Media Tax Credit (OIDMTC) eligibility criteria to include broadcaster purchased or licensed film/television websites that host film, television, or Internet production content not previously assessed (before Nov 1, 2017).
  • A review of various tax incentives implemented in other jurisdictions such as preferential corporate income tax rates (i.e., patent boxes), tax refunds, tax deductions, and exemptions with the intention of developing a provincial incentive to encourage Intellectual Property (IP).
  • An additional $50M over 10 years for the New Transformative Technology Partnerships Fund for businesses, SMEs, and scale‐ups as well as post-secondary and research institutions to collaborate on new dynamic products and services in artificial intelligence (AI), 5G wireless communications, autonomous vehicles, advanced computing, and quantum technologies.

Business Growth

  • In parallel with the 2018 Federal Budget proposal to phase-out or grind the $500,000 small-business limit, the Ontario Budget proposes to phase out the small-business limit on a straight-line basis for CCPCs (and associated corporations) earning between $50,000 and $150,000 of passive investment income in taxation years beginning after 2018.
  • Ending the electricity debt retirement charge (DRC) for mid-sized commercial and industrial non-ICI or non-RRP, Class B consumers as of April 1, 2018.
  • An additional $100M over 10 years for the Eastern Ontario Development Fund (EODF) and the Southwestern Ontario Development Fund (SWODF) to support regional economic development by creating jobs, attracting private sector investment and promoting innovation, and encouraging collaboration and cluster development.
  • An additional $500M over 10 years for the New Economy Fund for investing in priority sectors such as advanced manufacturing, information and communication technology (ICT), life sciences, and clean-tech.
  • An additional $85M over 3 years for the Northern Ontario Heritage Fund to stimulate economic development and diversification across the region.
  • An additional $100M over 10 years for a new Greater Toronto & Hamilton Area Fund to support SMEs in the GTA and Hamilton area.

Export Market

  • Work to implement a Global Trade Strategy to diversify and promote trade in Ontario. This will include the Accelerate to International Markets program, the Global Growth Fund, and the Magnet Export Business Portal.

Startup Support

  • An additional $85M over 10 years for a new Venture Technology Fund to support a select number of very high‐potential, fast‐growing firms in expanding to become globally competitive.
  • An additional $15M over the next 3 years to NextAI, a Toronto based accelerator for early stage startups that leverage AI technologies.

Workforce Development

  • An additional $170M over 3 years for the new Ontario Apprenticeship Strategy to support transition into apprenticeship from high school, make the system easier to navigate, and to improve access for apprentices to high‐quality jobs upon completion.
  • Transforming the Apprenticeship Training Tax Credit (ATTC) into the new Graduated Apprenticeship Grant for Employers (GAGE) to encourage employers to ensure that apprentices complete their training.

Free Seminar: Learn How to Manage IP & SR&ED to Boost Corporate Value

When it comes to intellectual property (IP) and Scientific Research and Experimental Development (SR&ED) tax credits, CFOs must constantly assess the value of the services that they receive in exchange for engagement fees. Making this assessment can be challenging to the point of frustrating. CFOs must keep the bigger picture of overall financial health of their organization, while dealing with a complex management regime consisting of CTOs and CMOs. Further challenges arise due to complex and opaque billing practices by law firms and SR&ED consultation firms.

Agenda for SR&ED:

  • Basic overview
  • Tracking experimentation for CRA compliance
  • Labour tracking for CRA compliance
  • Integrating SR&ED intro tracking systems
  • Setting up a strategy

Agenda for Intellectual Property:

  • Basic overview of IP regimes
  • Identifying points of differences in your business
  • Selecting an appropriate IP regime that provides a barrier to entry for those points of difference
  • Setting an IP strategy for your company
  • Setting an IP management committee
  • Business case criteria for IP filings
  • Setting fee schedules and billing practices to maximize transparency and accountability

Event details:

Speakers:
Gerry Fung, CPA CMA, P.Eng.
VP of Business Services at NorthBridge Consultants

Andrew Currier, BSEE, LL.B., P.Eng.
CEO of Perry + Currier Inc.

Date & Time:
Friday, 22 September 2017 from
8:00 AM to 10:00 AM (EDT)

* Eligible for substantive hours

Location:
PCK Perry + Currier Inc.
500-1300 Yonge Street
Toronto, Ontario M4T 1X3
Canada (MAP LINK)

Register Online 

For more information please contact:

 NorthBridge Consultants
1-519-623-2486 x230
ela@northbridgeconsultants.com

or

PCK IP
1-416-920-8170 x136
low@pckip.com

December 1 Toronto Seminar Reminder: Leveraging Your SR&ED to Reduce Patent Application Costs

In today’s competitive and data-driven business environment, the importance of protecting your intellectual property is higher than ever.

Exploiting synergies between SR&ED/IRAP and patent applications can save time and resources.

Many people don’t realize that significant parallels exist between what is required for a SR&ED/IRAP filing and for a patent filing. Join experts from Northbridge Consultants, a professional engineering firm and subject matter expert on government funding, and PCK, a leading boutique intellectual property firm, to find out how you can efficiently combine your SR&ED/IRAP and patent application processes.

The seminar will include a discussion about the requirements for the SR&ED and IRAP programs, about the fundamentals of intellectual property protection, and about how the application process for each filing can be combined into a single process, allowing you to coordinate actionable tasks with relevant time periods.

Agenda:

  • Introduction to government funding (SR&ED/IRAP)
  • Introduction to fundamentals of intellectual property protection
  • Explanation of how to process SR&ED applications in parallel with patent applications
  • Case studies (Using a SR&ED technical narrative to write a patent)
  • Discussion; questions and answers

Speakers:

Gerry Fung  CPA, CMA, P.Eng.
Vice President, Business Services at NorthBridge Consulting Services Inc.

Andrew Currier  BSEE, LL.B., P.Eng.
Co-Founder and CEO of PCK | Perry + Currier Inc. | Currier + Kao LLP

Date/Time:
Thursday, December 1, 2016 from 4:00 PM to 5:30 PM (EST)

Location:
PCK
500-1300 Yonge Street
Toronto, Ontario M4T 1X3

Booking/ Registration:
Please RSVP online by December 1, 2016.

Is a Canadian Patent Box System on the Horizon?

With the process of implementing a ‘patent box’ system ongoing in Quebec, much attention has been given recently to such a system across Canada to address our innovation gap—despite possessing one of the highest rates for R&D tax credits, Canada is lagging behind other leading developed countries when it comes to introducing innovation.

A patent box system is intended to foster the commercialization of intellectual property by reducing the percentage of tax applied to profits resulting from patented innovations. In contrast to SR&ED tax credits, which target the front end of the innovation lifecycle, a patent box regime targets commercialization, the last stage of the lifecycle. Therefore a patent box has the potential to mesh well with the SR&ED program to promote the entire R&D process.

The federal implementation of a patent box, however, would be neither straightforward nor cheap. The development of a robust framework would be required to determine the validity of claims and criteria for eligibility.

Many patent box systems have been introduced in developed countries within the last decade, especially in Europe. The UK program, for example, began in 2013 and reduces corporate tax on profit broadly related to the invention, from 22% to 10%. The Netherlands has had an innovation box system since 2007, which now encompasses a similarly broad range of IP, with a tax rate reduced from 25% to 5%.

Beginning in 2017, Quebec’s “innovative companies deduction” will allow revenue from innovation developed in the province to be taxed at 4% rather than 11.8%. The limitations to eligibility are an effort to keep the benefits of the tax reductions to companies based in Quebec. Other provinces, such as Saskatchewan, could be following suit soon.

While it is currently unknown when, or if, a Canada-wide patent box system is forthcoming, one thing that remains certain is that the debate on the need, benefit, and cost of the program will continue.  NorthBridge Consultants is dedicated to bringing you the most recent news and updates on various federal and provincial programs and will continue to provide updates on the topic of patent boxes as they become available.

Upcoming Seminar- Leveraging SR&ED to Reduce Patent Application Costs

Exploiting synergies between SR&ED/IRAP and patent applications can save time and resources

Many people don’t realize that significant parallels exist between what is required for a SRED/IRAP filing and for a patent filing. Join experts from Northbridge Consultants, a professional engineering firm and subject matter expert on government funding, and PCK, a leading boutique intellectual property firm, and find out how you can efficiently combine your SRED/IRAP and patent application processes.  The seminar will include a discussion about the requirements for the SRED and IRAP programs, about the fundamentals of intellectual property protection, and about how the application process for each filing can be combined into a single process, allowing you to coordinate actionable tasks within relevant time periods. [ Register now for this free seminar]

When: Thursday, June 23, 2016

Seminar location: 

Treehaus Collaborative Workspace
79 Joseph Street
Kitchener, Ontario

Time: 1pm – 3pm

Speakers:

andrewcurrier

Andrew Currier, BSEE, LL.B., P.Eng.
Co-Founder and CEO
PCK | Perry + Currier Inc. | Currier + Kao LLP
Ph: 519-883-0035 x109
Email: currier@pckip.com

Gerry_WP

Gerry Fung, CPA, CMA, P.Eng.
Group Manager, Business Services
NorthBridge Consulting Services Inc.
Ph: 519-623-2486 x242
Email: gerry@northbridgeconsultants.com

 

Tags: , ,

  • Subscribe to our feed
  • NorthBridge Consultants' Government Funding Blog is dedicated to bringing businesses news and information to help them identify and access the most appropriate government funding programs.

    We offer opinions and insider information that can provide a pulse on government initiatives, the health of the Canadian economy, and firsthand thoughts from Canadian business owners.

Most Recent Entries

Upcoming Events