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L3. Sale and assignment of intellectual property

GENERAL

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GENERAL ​

Types of intellectual property

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Types of intellectual property

- Image rights not a recognised form of property in English law but is in other jurisidictions

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English law

- No property in a person's image in English law (Sports Club Plc, §8, Collingwood, §90).

- "There is in English law no "image right" or "character right" which allows a celebrity to control the use of his or her name or image" (Fenty, §29).

- Alternative routes to protecting:

"[33] A celebrity seeking to control the use of his or her image must therefore rely upon some other cause of action such as breach of contract, breach of confidence, infringement of copyright or, as in this case, passing off. However, as Mr Hobbs has properly reminded us, the law of passing off is not designed to protect a person against fair competition. Nor does it protect a person against the sale by others of the same goods or even copied goods. What it protects is goodwill and it prevents one person passing off his goods or services as those of another." (Fenty).

​- HMRC say: "These judicial authorities put beyond doubt that under UK law there is no such thing as an “image right”" (CG68455).

- But a third party can own a right to exploit an individual's image (CG68465).

- This is the grant of a new right rather than the assignment of an existing right. 

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Other jurisdictions

​- HMRC say: "Many jurisdictions outside the UK recognise “image rights”. Most EU countries have some right protecting commercial use of an individual’s name or image, whilst France and Germany in particular have strong image right and personality right laws. Guernsey recently introduced a comprehensive system for registering image rights. Over 30 States in the USA also have some form of image or publicity right. So where non-UK “image rights” are concerned, it is important to establish the nature of the rights and the relevant jurisdiction." (CG68450).​

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Legislation: 

Cases: 

Sports Club Plc v. Inspector of Taxes [2000] STC (SCD) 443;

Fenty v. Arcadia Group Brands Limited [2015] EWCA Civ 3

Collingwood v. HMRC [2025] UKFTT 1065 (TC)

HMRC manuals: 

CG68450 - Intellectual Property Rights: image rights: image rights in the UK; 

CG68455 - Intellectual Property Rights: image rights: law of passing-off;

CG68465 - Intellectual Property Rights: image rights: CGT implications: what else if not CGT; 

Commentary: 

See also:

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- Image rights not a recognised form of property in English law but is in other jurisidictions

- Goodwill

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- Transfer of business of exploiting image of another may involve transfer of some goodwill (CG68465)

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Legislation: 

Cases: 

HMRC manuals: 

Commentary: 

CG68465 - Intellectual Property Rights: image rights: CGT implications: what else if not CGT; 

See also:

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- Goodwill

- Trademarks

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XX

Legislation: 

Cases: 

HMRC manuals: 

Commentary: 

See also:

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- Trademarks

Validity and effectiveness of assignment 

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Validity and effectiveness of assignment 

- Image rights related

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- Ineffective attempt to assign the benefit of promotional contracts entered into by the player in Collingwood where the assignment contract purported to assign only "intellectual property rights" after the contracts had already been entered into (§§88, 90).

- Query whether it would have been effective anyway - see A5. Individual receiving or entitled to income.

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Legislation: 

Cases: 

 Collingwood v. HMRC [2025] UKFTT 1065 (TC), Judge Manyarara

HMRC manuals: 

Commentary: 

See also:

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- Image rights related

INCOME TAX

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INCOME TAX ​

- XX

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see A5. Individual receiving or entitled to income.

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Legislation: 

Cases: 

HMRC manuals: 

Commentary: 

See also:

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Whether assignment effective to transfer tax liability on income

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Whether assignment effective to transfer tax liability on income

Capital gains

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Wasting asset

IP with less than 50 years left to run is a wasting asset.

Legislation: TCGA s.44.

Cases: 

HMRC manuals: CG76723

Commentary: 

See also:

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Foreign situs?

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Legislation: TCGA s.275

Cases: 

HMRC manuals: 

Commentary: 

See also:

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 © 2023 by Michael Firth, Gray's Inn Tax Chambers

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