In economies that are increasingly knowledge based and in which companies have a tendency to invest more in research and development than in technical equipment, intangible assets such as intellectual property constitute an ever-larger element in the valuation of a company. As a result, companies manage these asses in a much more active manner, notably by regrouping them in areas that offer the most appropriate environment.
By adopting into national law all the relevant European Directives and international treaties, such as the Agreement on aspects of intellectual property rights with regard to commerce, over the last 30 years Luxembourg has developed an environment that is safe and efficient for the management of intellectual property rights.
Luxembourg has signed all the important treaties and conventions in the matter of intellectual property, including the Bern Convention, the Patent Cooperation Treaty (PCT), the Paris Convention, the Patent Law Treaty (PLT) as well as the Madrid Agreement concerning the international registration of trademarks. Luxembourg also joined the European Patent Convention, which was the origin of the European Patent Office.
Luxembourg offers a range of measures that favour the creation, development and valuation of intellectual property, including a tax exemption of up to 80% on capital gains generated by the commercial use of intellectual property rights.