UPDATE: On January 20, 2016, the California Supreme Court denied the Board of Equalization’s petition for review of Lucent. Thus, the TTA issue regarding software has now been put to rest.
This article discusses how tax applies to technology transfer agreements (TTAs) in California, and recent developments regarding the TTA status of prewritten software programs resulting from Nortel Networks Inc. v. Board of Equalization (2011) 191 Cal.App.4th 1259 and Lucent Technologies, Inc. v. State Board of Equalization, Docket No. B257808. A TTA is defined as an “agreement under which a person who holds a patent or copyright interest assigns or […]