Handbook on Deriving Capital Measures of Intellectual Property
Handbook on Deriving Capital Measures of Intellectual Property Products Key recommendations National Accounts Working Party Meeting Paris 4 -6 November 2009 Contact: nadim. ahmad@oecd. org
Background • Recognition of R&D as an asset in the 2008 SNA • Creation of OECD and Eurostat Task Forces to develop practical guidance. • And the development of the Handbook
Summary • Guidelines on 4 key types of IPP: – R&D – Software and databases – Mineral exploration and evaluation – Entertainment, artistic and literary originals
Key recommendations • Licenses to use – reconfirmation of Canberra group recommendations concerning licenses to use for more than one year (and not intention to use) • Licenses to reproduce – Change from the 1993 SNA. Should be recorded as whole or part sale of the original and IC otherwise. • Own-account production – record the costs as GFCF as they occur. – Unsuccessful originals – should be depreciated like successful originals, (pragmatic).
Key recommendations • Freely available IPPs • Source of considerable debate for non-market R&D: • Two views emerged: a. Only R&D where government was a user of the asset b. All R&D produced by government: – public good. • Both had merit but international comparability best obtained by (b) - also simpler
Practical guidance • R&D – Handbook provides detailed guidance on bridging FM with SNA concept. (Tables 2. 3 and 2. 4) – And description of surveys that could be used by NSOs for SNA based collection. • Software • Mineral exploration and evaluation • Entertainment, artistic, literary originals – Eurostat Task Force
Further work • International Trade – Lack of detail in current classification systems presents problems but increased detail in MSITS 2010 should improve the situation. – However IPP trade between affiliates remains problematic
Further work • Cross border sales or licence agreements of IPPs between affiliated enterprises. • Cross border Capital transfers of IPPs between affiliated enterprises. • IPPs provided by parents to foreign subsidiaries without a fee but with the expectation of receiving property income in the future. • IPPs provided by foreign subsidiaries to parents without a fee but in response to previous foreign direct investment. • Issues: ‘at-length market prices’; changes to capital stock of IPPs;
- Slides: 8