An intellectual property holding company, established by a parent company, owns intellectual property used by the parent company. The intellectual property holding company licenses the rights to operating companies. The holding company thus receives royalties from its licensee(s). This arrangement may be beneficial to mitigate risk to the parent company and seek preferential situations for taxes imposed on royalty income.
When two parties enter into a contract, they are essentially agreeing to a set of terms and conditions. However, what happens if there is a disagreement about the meaning of one or more of those terms? This is where contract interpretation comes in.
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