Australian based franchisors with international operations may be able to partially recover the cost of IP protection under a recent amendment to the Export Market Development Grants (EMDG) scheme from 1 July 2009.
The EMDG scheme is a financial assistance program for aspiring and current exporters that is administered by Austrade. The scheme supports a wide range of industry sectors and products, including the export of intellectual property and know-how outside Australia.
As a result of recent changes, eligible recipients may now apply to recover the cost of granting, registering or extending rights under foreign laws in relation to eligible intellectual property, as well as the cost of obtaining insurance to protect these rights. Up to 50% of eligible export promotion expenses above $10,000 may be reimbursed under the scheme.
This change complements the existing costs that may be recovered under the scheme, including:
- costs of engaging overseas representatives;
- marketing consultants in relation to market research;
- marketing visits to foreign countries;
- communications for the purpose of promotion of goods/services;
- provision of free samples;
- trade fairs, seminars and promotions;
- promotional materials and advertising; and
- bringing overseas buyers to Australia.
There are a number of criteria that need to be met to satisfy the eligibility criteria but it is likely that the inclusion of exporting intellectual property (and the ability to recover costs in relation to registration of intellectual property) will mean that a number of franchisors satisfy the criteria.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.