Measuring Payments for the Supply and Use of Intellectual Property

Abstract

This chapter provides the first detailed estimation of U.S. corporate income from the use of intellectual property, commonly called royalties and licensing fees. The findings reveal that transactions in royalties and license fees are predominantly conducted through business affiliates and that international transactions in royalties and license fees in 2002 account for the bulk of U.S. receipts from unaffiliated parties. This chapter argues that the Statistics of Income (SOI) data are more complete than the Census data as a basis for estimation of the industries' supply and use of rights to benefit from intellectual property.

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