1. © AO|HALL 2007 Guernsey Fiduciaries Forum 25 April 2007 Guernsey’s new intellectual property regime Tania Shires, Group Partner AO HALL

2. © AO|HALL 2007 The Guernsey Regime ●2002 Policy letter to the States of Guernsey ● The Intellectual Property (Enabling Provisions) (Bailiwick of Guernsey) Law, 2004 ● Independent intellectual property office ● First ordinances introduced on 1 January 2006 ● Reform continuing ● Membership of international treaties and conventions ●www.gov.gg/ipo

3. © AO|HALL 2007 The Guernsey Regime – legislation now in force ● Intellectual Property Office ●Copyright ● Database Rights ● Performers’ Rights ● Registered Designs ● Unregistered Design Rights ● Trade Marks ● Unregistered Design Right (Semiconductor Topographies) ● Registered Plant Breeders’ Rights

4. © AO|HALL 2007 The Guernsey Regime – upcoming legislation ●Patents and innovation warranties ● Geographical indicators ● Image rights

5. © AO|HALL 2007 Guernsey’s key advantages ●International standard of IPR protection ●Legislative framework enabling proactive change ●Sophisticated financial services infrastructure ●Favourable economic and political climate ●Established choice of SPVs ● Zero capital gains tax ● 0–10% corporate tax from 2008 ●Freedom from EU restrictions ●Freedom to critically review and select the most beneficial regime

6. © AO|HALL 2007 Guernsey structuring options ●Increased securitisation of IPRs ● PCCs: protected cell companies ● ICCs: incorporated cell companies ● Trusts

7. © AO|HALL 2007 PCC – segregation of assets Merchandising design rights Script copyright Trade marks Film Co Cell Musical ©

8. © AO|HALL 2007 PCC – segregation of risk z Product IP Company Cell R&D Product Line A Product Line B Product Line C

9. © AO|HALL 2007 ICC structure Media ICC Licence rights Royalty payments Soundtrack IC Merchandising IC Distribution IC Copyright IC

10. © AO|HALL 2007 Possible trust structure Guernsey trustee Trust (owns shares of cell company) Special purpose vehicle or cell company

11. © AO|HALL 2007 Guernsey Fiduciaries Forum 25 April 2007 Guernsey’s new intellectual property regime Tania Shires, Group Partner AO HALL Email: tania.shires@aohall.com ddi: +44-1481-748 906