Audrey Pratt
Advisor | Ing. | Tax

After the holiday break, your well-rested technical team comes up with a new idea that will revolutionize your company’s market! Now, you’re wondering, should I protect this intellectual property?

Filing a patent application is often the best way to protect the results of your development activities. However, there are a number of criteria to consider beforehand because not everything is patentable!

A patent protects intellectual property, whether it is a chemical compound, product, method or software. It prevents third parties, your competitors, from copying your work and selling it as their own. It also provides the exclusive right to manufacture and sell your invention.

However, a patent is an agreement between your company and the government. A government, Canada, for example, gives you the right to prevent third parties from manufacturing, selling or using your invention. In exchange, you have to publish technical information on the new technology that you have developed to advance science in your field of activities.

A patentable invention must satisfy the following criteria:

Novelty

The invention to be patented must be the first of its kind in the world. Your organization must be the first one to use the technology it is presenting. This requirement implies very significant practical consequences.

On the one hand, you need to keep your invention a secret to the extent possible until you submit your patent application. In other words, you should file a patent application before talking about the invention to suppliers or business partners or disclosing it at a trade show for example. An invention that is disclosed before submitting a patent application becomes part of the “public domain”, In other words, anybody can use it, including your competitors, and your company can no longer benefit from patent protection.

On the other hand, if the innovative technology is partly disclosed or patented in Canada, you can only apply for a patent for the undisclosed portion.

Inventiveness

To be patentable in Canada, the invention must be a new development or an improvement of an existing technology that would not have been obvious to someone working in your area of specialty.

The inventiveness is assessed in connection with a set of documents in the same technical field as the invention. This assessment is undertaken from the point of view of a person skilled in the art to compare the invention and its technical advancement and determine whether or not the first derives naturally from the second.

Utility

The last criterion is the invention’s utility. Contrary to what you may think, the assessment is not based on the usual meaning of “useful”. The technology developed does not have to provide a benefit or meet a need or request. The technology must be something that works and does what it purports to do. This legal obligation is generally not a major issue for corporate inventions given their marketing objectives.

The Patent Act is complex. Accordingly, it is recommended that a patent agent registered with the Canadian Intellectual Property Office be contacted. The agent can assess the patentability of your various technologies.

Take a look at your SR&ED work during the year, for example, any related to technological uncertainty that leads to a technological advancement. It could very well lead to obtaining a patent!

19 Jan 2017  |  Written by :

Ms. Pratt is your expert in taxation for the Montréal office. Contact her today!

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Whether you are an employee, a self-employed individual or a professional, you are required to keep a record of your expenses when using an automobile during the course of your professional activities. To assist you, we have developed l’Auto-route to help you record the necessary information.

Whether you are an employee, a self-employed individual or a professional, you are required to keep a record of your expenses when using an automobile during the course of your professional activities. While this may be a tedious and unpleasant activity, it is essential.

We invite you to download l’Auto-route. This Excel file will allow you to enter your personal data for automatic compilation. Click on this link to download l’Auto-route (Excel File)

Should you require more information on the tax impact of using an automobile during the course of your income-generating activities. You will find, among others, a summary of rules related to the calculation of taxable benefits, deductions for automobile expenses and travel allowances, refunds or employer advances.

We can help take you farther!

Please note that l’Auto-route is only available online.

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Mathieu Leblanc
Senior Manager | Ing., M. Ing., MBB | Tax

As a member of Yoshua Bengio’s lab in Montréal, Canada, Grégoire completed his PhD in Deep Learning, while collaborating closely with research teams at Google, Microsoft and Facebook, in the US.

Grégoire is now working on his second venture based in Paris and Montréal. His consulting firm, Incalia, builds custom Machine and Deep Learning solutions for companies where the client owns the IP. The team works on a wide variety of solutions, from analyzing medical image to integrating user feedback into search engines. He and his team mentor Data Science teams want to become proficient in Deep Learning.

When I asked him, Grégoire gladly accepted to answer some questions about his field of interest, which I find fascinating.

How do Artificial Intelligence (AI) and Machine & Deep Learning bring value to companies?

AI is relevant and very useful for organizations that would like to streamline a human decision process into an automated process at scale. Today, machines are reaching an accuracy equal or superior to human performance on certain tasks. AI is creating value in diverse markets by allowing new ways of collaborating between traditional wisdom and algorithms. AI is or will be present in most industries, with applications as varied as self-driving trucks to detecting early stage cancers.

What is the difference between Machine Learning and Deep Learning?

Research and industry have made huge progress over the last three decades in the field of Machine Learning, but Deep Learning is now adding on another significant layer of change. Deep Learning allows machines to bridge the perceptual gap. In the past, it was hard to extract the best characteristics from sensory input like images, sounds or even texts into machine-readable format. Now, the machine can automatically learn the features that are most suited for the challenge being tackled.

Another advantage of Deep Learning is versatility. The high-level architecture of Deep Learning is composed of plug and play blocks that can be easily combined. For instance, you have two algorithms: one can generate text from a large, unstructured set of text and the other one can easily detect an object in an image. You can plug those two models together and obtain an algorithm that will automatically generate textual captions for images, given the detected objects in the image.

With AI and DL being more and more introduced in our daily lives, should we be scared that robots will take over?

Machines are still dumb. Indeed, they can become extremely competitive when world-renowned scientists spend significant time working on a complex problem, as we recently realized it with the Go Game victory of AlphaGo versus a world-class human champion. This victory heavily relied on human input, as numerous sequences from expert human player games were fed into the machine during its training process. So, we are currently very far away from a computer that we feed with minimal data, and that becomes intelligent by itself.

In nature, animals and plants adapt and learn very quickly from their environment, showing a form of intelligence that we cannot find in machines.


Explore this fascinating topic in greater depth.

Here are some ideas:

16 Jan 2017  |  Written by :

Mr. Leblanc is a senior director at Raymond Chabot Grant Thornton. He is your expert in taxation for...

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Sylvain Moreau
Partner | FCPA, FCGA, Pl. Fin., D. Fisc., TEP | Tax

It is generally known that the accrued gain on your principal residence is not taxable.

Without necessarily getting into the details, an individual who sells his residence knows that he is not required to report anything in his tax return and generally has no tax to pay.

If, however, you have more than one residence where each can be designated as a principal residence, a prescribed form (T2091) must be prepared to establish the portion of the gain that could be taxable. It’s not always necessary to send this form to the tax authorities. To address this lack of information and control, with very little fanfare, the federal tax authorities have introduced new rules for improving observation and administration of the tax system in this regard. Since there’s a risk of changes and certain surprises for taxpayers who do not follow these, it’s worth looking at them.

New obligations

Gone are the days when you could sell your residence without notifying the tax authorities. According to the new provisions, you will have to comply with disclosure obligations (starting with your 2016 tax return), if you disposed of your residence since January 1, 2016. To the extent that you lived in your residence for each of the years where you were the owner, the gain could be totally exempt and no tax be required. Up to here, nothing has changed.

However, you will henceforth have to report the acquisition year, the sale price and a description of the property. This means that if you have more than one dwelling and the property sold cannot be designated as your principal residence for each of the years you owned it, you will have to complete the prescribed form (T2091) to calculate the tax-free and taxable portions.

Don’t forget to declare the sale, otherwise…

Unless you declare the sale of your residence during the year, you will not be able to benefit from the exemption for a principal residence, such that the profit realized (called capital gain) will be taxable.

If you forget to declare the disposition and to designate it as a principal residence in the year of the sale, it would be in your best interest to ask the Canada Revenue Agency (CRA) to modify your income tax return and pay a penalty for late filing. This penalty will correspond to the lesser of the following two amounts:

  • $100 per late month calculated since the filing deadline;
  • $8,000.

Furthermore, individuals who have not reported the sale could be in for another surprise. The period during which the CRA can issue a new assessment (which is currently three years) will be indefinitely extended. The tax authorities will therefore have all the time needed to find delinquent taxpayers.

Tips

  • Make sure you comply with the new disclosures in order to benefit from the exemption for a principal residence;
  • If you forget to declare your principal residence, notify the tax authorities and pay the penalty applicable. It could be less costly than the capital gains tax;
  • Remember: keeping track of the cost of your property and related improvements will help reduce your tax bill;
  • New rules have also been provided if you’re a non-resident of Canada or if you hold a residence in a personal trust;
  • Consult a tax professional to avoid unpleasant surprises.

06 Jan 2017  |  Written by :

Sylvain Moreau is a partner at Raymond Chabot Grant Thornton. He is an expert in taxation for the...

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