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Theft of Intellectual Property Lisa Patrick

Many companies think they have satisfactory measures in place for protecting their intellectual property through data access.  These may be in the form of passwords, biometrics, file encryption, non-disclosure agreements, firewalls, anti-virus, intrusion prevention and employee training.   The reality is however is that most companies have no idea where their intellectual property is really going.  In most cases, straight to the competition and providing them a leading edge with your material, idea or product.

Intellectual property theft is different than the theft of physical property. Instead, it involves stealing or misusing proprietary information a company (or person) owns. Examples of intellectual property include copyrights (which protect things such as written material, audio or video recordings, and even computer code), trademarks (which protect things like a company name, product name, logo, slogan, or package design), trade secrets (like a restaurant's secret recipe), and patents (which protect inventions or discoveries, like the composition of a new medication).

Why is intellectual property important?

Intellectual property protection is critical to fostering innovation. Without protection of ideas, businesses would not reap the full benefits of their inventions and would focus less on research and development. Similarly, artists would not be fully compensated for their creations and cultural vitality would suffer as a result.

Why should I protect my intellectual property?

Piracy, counterfeiting and the theft of intellectual property assets pose a serious threat to all businesses. Exporters face unfair competition abroad, non-exporters face counterfeit imports at home and all businesses face legal, health and safety risks from the threat of counterfeit goods entering their supply chains.

What about those companies that are seeking your intellectual property by means of deception? 

You are asked to ‘help’ and instead you are creating a database of knowledge for the competition to further their development without you even realizing what you are doing.

As a business owner I ask these questions and so should you:

1.     1.  If someone wants everything for free it must have value?

2.     2. When I provide free information what am I providing? 

3.     3. Who am I providing this information too? 

4.     4. What is their intent with this information?

Due diligence is required by ourselves to ensure that we know who we are doing business with and we are comfortable providing the information to that individual or company.  Next time your intellectual property is questioned make sure you ask yourself the above 4 questions and you have the answers.

 According to FBI, Interpol, World Customs Organization and International Chamber of Commerce estimates, roughly 7-8% of world trade every year is in counterfeit goods. That is the equivalent of as much as $512 billion in global lost sales. Of that amount, U.S. companies lose between $200 billion and $250 billion. IP theft has a major impact at home, too: according to the U.S. Chamber of Commerce, overall intellectual property theft costs 750,000 U.S. jobs a year.

According to the Harvard Business Review – ‘the law is often not the best defense against the theft of intellectual property.  Far more effective in such cases are market-based strategies that keep pirates in port.’ Read their protection idea’s and suggestions.

Download here. 

Lisa Patrick


T2154 - Forgiven Debt Lisa Patrick
Yikes, your company has been forgiven a debt…  That could mean you have income and gst to report unless you designate the amount was initially an equipment cost and reduce the asset value.

There are extremely complex rules dealing with situations where taxpayers who have commercial obligations (debt) and that debt is settled for less than the principal amount. If the debt is personal or non-commercial in nature, nothing happens. In these cases, the debt is defined to include debt where the interest is not deductible for income tax purposes. Commercial debt is debt where interest is deductible for income tax. To be deductible, it must have been incurred to earn income from a business or property. However, even in cases where the debt was non-interest bearing, the debt forgiveness rules apply where interest, if paid or payable, would have been tax deductible. Where commercial debt is forgiven, the forgiven amount is subject to certain special tax treatment.

  T2154- Application of Designated Forgiven Debt Under Section 80 <http://www.cra-arc.gc.ca/E/pbg/tf/t2154/README.html>
 
Do not do this accounting entry or tax entry without talking to a Tax Accountant or your local Tax Centre.

A debt could mean an income and income means possible taxes to pay!

IF you need help contact us. Darlene Lafond R.P.A.


Rule of 9 Lisa Patrick
Rule of 9
If you have un reconciled balance - If the variance is dividable by 9, likely a number reversal – you have input 11 instead if 21
Example
11 or 21 = difference of nine
17 or 71 = difference of 54 (divided by nine)
 
Sales rate factor determiner
to apply to any gross amount that includes sales tax to obtain actual sales tax amount.
Sales tax divided by (sales tax rate +100 ) = rate to apply to gross amount to get sales tax amount.
 
5 divided by 105 = .0476190476
$1.05 x .0476190476 = 5 cents sales tax.
 
13 divided by 113 = .11504424778

$1.13 x .11504424778 = 13 cents

Darlene Lafond R.P.A.


Rule of 72 Lisa Patrick

Rule of 72

A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double.

To determine how long it will take to actually pay or receive interest on any principal amount equal to the principal amount - divide 72 by rate of interest.
1% interest = 72 years to see you double your investment.
Or you doubled your mortgage cost.
 

15% interest = 4.8 years

Darlene Lafond R.P.A.



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