In the space of one week we have seen two major developments in
the way in which cross-border IP transactions are dealt with in
South Africa. These are developments that cannot be ignored
by South African companies who have multinational operations.
On Friday, 8 June we saw amendments being gazetted to the
Exchange Control Regulations confirming that cross-border
transactions involving intellectual property are subject to
exchange control regulations. This was followed a few days
later by the Organisation for Economic Co-operation and Development
issuing its discussion draft on the revision of chapter VI of its
transfer pricing guidelines dealing with intangible assets.
Any South African organisation involved in cross-border
transactions involving the use of its intellectual property, needs
to take cognisance of these developments. They do not only
affect transactions where, for example, there is a sale of a patent
or a trade mark from South African entity to a
