CRA indicates that it might address the consequences of a sale of IP by a partnership for the benefit of a university and its researchers

A university transferred the intellectual property developed for it by its researchers in the course of their employment to a limited partnership of the university, but agreed that they would receive 50% of the resulting net income from the commercialization of the IP. When asked about the tax treatment of a lump sum received on a sale by the partnership of IP and shared with the researchers, CRA indicated that this was a question of fact that might be addressed in a request for a ruling, but not for a technical interpretation.

Neal Armstrong. Summary of 11 March 2025 External T.I. 2020-0845931E5 F under s. 9 – capital gain v. profit – patents.