What Is an IP Holding Company—and Should You Have One?

 

For businesses built on innovation, how intellectual property is structured can be just as important as what’s protected. An IP holding company is a separate legal entity created to own and manage IP assets—distinct from the day-to-day operations of the business itself.

Creating a separate holding company (HoldCo) for intellectual property (IP) can deliver substantial strategic, operational, and tax-related benefits. However, this structure also adds complexity to legal, financial, and compliance processes. Organizations considering growth, investment, or exit strategies should evaluate both the advantages and risks associated with separating IP ownership from the operating company (OpCo).

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