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California technology transfer agreement defined.


Software/Hi-Tech

California has defined a technology transfer agreement as a legally binding contract that gives a third-party permission to manufacture and sell products that are otherwise protected under a copyright or patent the seller maintains. All revenue received for tangible personal property transferred in connection with a technology transfer agreement is taxable. Amounts allocated for revenue received for tangible personal property must be valued at fair market value. Revenue received specifically for rights granted for use of a patent or copyright are not taxable. (California Regulation, Reg. 1507.)

(10/15/2002)
(Archived)
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