Client: International agribusiness group
Scope: Legal audit of intellectual property and tax risks in an international manufacturing project
Lead expert: Anna Kravchuk
Outcome: Identification and mitigation of key IP and tax risks within a cross-border manufacturing project
Project Overview
An international agribusiness group was implementing a large-scale investment project aimed at establishing a manufacturing facility in Ukraine with the involvement of foreign investors.
Over the course of its business development, the group accumulated a substantial portfolio of intellectual property assets, including trademarks, patents, industrial designs, as well as production-critical technologies and know-how. These assets had been created and used across multiple jurisdictions and at different stages of business growth, which required a comprehensive review of their legal status and usage model.
In preparation for business scaling, reduction of regulatory and tax risks, and enhancement of the project’s investment attractiveness, the client initiated a comprehensive legal audit of its intellectual property and related tax aspects.
The Synergy team conducted an in-depth analysis of the ownership and use structure of IP assets within the group, licensing and sublicensing arrangements between foreign entities and the Ukrainian company, as well as the tax implications of using know-how and technical documentation in the manufacturing process. Particular attention was paid to the risks of reclassification of royalty payments and the approaches applied by tax authorities and courts in similar disputes.
As a result, the client received a comprehensive legal opinion and a practical model for the secure use of know-how within an international business structure. In particular, the project clearly distinguished the granting of rights to use technologies from the transfer of documentation as a material medium, developed approaches to identifying know-how without disclosing its content, and designed contractual frameworks minimizing the risk of additional tax assessments.
The project also confirmed an important practical conclusion for businesses: provided that proper contractual and evidentiary frameworks are in place, royalty payments for the use of know-how are lawful and can serve as an effective tool for structuring international manufacturing projects.
Overall, the engagement resulted in increased transparency of the IP asset structure, reduced tax risks, and improved readiness of the client’s business for further growth and investment attraction.