Logo image rights are a major issue for companies in the digital economy. This specific legal protection is part of a global approach covering various specialized business sectors. The tax implications of this protection require in-depth expertise to optimize corporate strategy.

What are logo image rights?

Logos are protected primarily by trademark law and, in some cases, by copyright. These legal mechanisms protect a company’s distinctive signs against unauthorized use, as part of the broader framework of intellectual property law.

A logo is protected by trademark law as long as it is distinctive, in return for registration with the INPI (approximately €190 for one class). This protection, which lasts for 10 years and can be renewed indefinitely, extends to the commercial, advertising or promotional use of the logo. At the same time, copyright can protect logos of sufficient originality, without the need for registration.

This legal protection generates economic rights that can be exploited for tax purposes. The company can thus commercially exploit its logo rights through licensing or assignment, creating significant opportunities for tax optimization.

Legal framework for logo protection

The French Intellectual Property Code strictly regulates the protection of logos. Article L. 711-1 defines the conditions for protection under trademark law, requiring in particular a distinctive character that identifies a company’s products or services. Copyright can be applied to logos with sufficient originality, i.e., reflecting the personality of their author through free and creative aesthetic choices. These two protection regimes can be combined to reinforce legal protection.

Protection is mainly acquired by registering a trademark with the INPI, with a success rate of around 95% and an average processing time of 5 months. This confers a ten-year operating monopoly, renewable indefinitely, in accordance with the principle of speciality, which limits protection to designated classes of goods and services. In the absence of a registration, limited protection may exceptionally be applied through copyright or unfair competition, but these remedies are more difficult to implement and offer less extensive protection.

Penalties for infringement of logo rights include damages, seizure for infringement and prohibition of further use. However, certain limitations apply, notably the parody exception, use for information purposes or reproduction in an editorial context. These measures can have significant tax consequences for the companies concerned, both for rights holders and infringers.

Tax implications of logo image rights

Valuing logo rights for tax purposes is a complex issue. Expenses related to the registration and protection of logos are generally deductible from taxable income. The accounting valuation of logos must comply with fair value principles, particularly when they are recorded as assets on the balance sheet.

The amortization of intellectual property rights follows a specific regime. The amortization period generally corresponds to the legal protection period, i.e. ten years for a trademark. This approach makes it possible to optimize the tax charge over several years. Accounting valuation methods must take into account the actual economic useful life of the logo, which may differ from the period of legal protection.

Income generated by the exploitation of logo image rights can benefit from the preferential tax regime for intellectual property under strict conditions. The scheme applies to companies with sales of up to €7.63 million, and allows reduced taxation of 15% of profits from the exploitation of eligible intellectual property rights. Eligibility requires that the rights have been developed by the company itself or acquired from unrelated entities.

The valuation of logos in restructuring operations requires in-depth tax expertise. Transfers of rights may generate taxable capital gains or benefit from preferential regimes, depending on the terms and conditions adopted. For international groups, transfer pricing issues become crucial: the valuation of license royalties between related entities must respect the arm’s length principle to avoid tax reassessments.

Protection strategies and tax optimization

An effective strategy for protecting the image rights of logos combines a legal approach with tax optimization. Building a structured trademark portfolio maximizes protection while optimizing the tax burden.

The use of specialized holding structures may be appropriate. These legal vehicles can centralize the management of intellectual property rights and optimize their exploitation for tax purposes.

Intra-group license agreements are a recognized lever for tax optimization. This approach enables revenues to be divided between different entities according to their respective tax regimes.

Active monitoring of logo image rights infringements is essential. This legal watch makes it possible to quickly identify unauthorized uses and preserve the patrimonial value of rights.

Litigation and appeals concerning logo image rights

Litigation relating to logo image rights falls mainly within the jurisdiction of specialized judicial courts. The seizure-infringement procedure makes it possible to rapidly obtain effective protective measures.

The assessment of damages follows precise criteria established by case law. Damages may include loss of earnings, profits unlawfully made by the infringer, and moral prejudice.

The tax implications of litigation require particular attention. Damages received are generally taxable income, while legal costs may be deductible under certain conditions.

Out-of-court settlements often offer tax advantages over litigation. This approach makes it possible to control the tax consequences while preserving business relations.

Distinction between trademark and copyright protection

Logos benefit from an interesting legal feature: they can be protected under both trademark and copyright law. This complementarity offers greater legal security to companies wishing to protect their visual identity.

To be protected by copyright, a logo must satisfy the fundamental criterion oforiginality. Contrary to popular belief, not all logos meet this condition:
– The logo must reflect the personality of its creator
– It must be the result of a creative effort that goes beyond the simple application of common techniques
– Its design must involve arbitrary creative choices.

It is important to note that copyright protection is acquired automatically as soon as the work is created, without any particular formalities. This lack of formalities is both a strength and a weakness: while it simplifies access to protection, it also makes it considerably more difficult to provide proof in the event of a dispute. To overcome this difficulty, it is advisable to keep a record of all stages in the creation of the logo, and to consider registering it with a trusted third party, such as a bailiff or certain specialized organizations.