Copytrack will take care of everything related to the billing of successfully enforced claims. You, as our customer, and the infringing party will receive all necessary documents from us. The following three factors will determine which documents you will receive and which tax rate will be applicable:
Is it a payment for a license or for compensation?
Are you a private individual or an entrepreneur?
In which country are you domiciled?
License Payments
For post licenses, Copytrack sells a limited license to the infringing party and bills them for it. We then settle this invoice with you as our customer via a credit. This credit corresponds to an invoice for a license that you have billed to us.
This invoice makes it possible for us to sell a license to the infringing party. Consequently, the license you will see with your credit is an unlimited license. The infringing party, however, will only be granted a limited license.
The credit note will amount to 55% of the license fee paid by the infringing party. We will withhold the 45% difference as a success-based commission in accordance with Copytrack’s terms and conditions.
Your credit note may include value-added tax, dependent upon whether you are a private individual or an entrepreneur.
If you are a private individual, then your credit will not be subject to value-added tax, because you will not be paying value-added tax to the state as a private individual.
If you are registered with us as an entrepreneur, then we will consider when issuing your credit note whether you must charge VAT on the sale of licenses. This will be determined by considering the country in which you are domiciled.
Germany: 7% VAT
Germany + "Kleinunternehmer": No VAT
Within EU with EU VAT ID: No VAT
Within EU without EU VAT ID: 7% VAT
Non-EU countries: No VAT
Payment of Compensation
Compensation payments are considered a fundamentally separate legal process from that for a license fee. As a result, we must invoice them in a different manner.
Copytrack claims compensation based on the claim you’ve assigned to us. If the opponent pays a claim for compensation, then we are required to pay to you this amount in full. In this case you will receive a payment notification with the designation “Payout of Compensation”. Because compensation payments are not subject to value-added tax in Germany, this document will not contain tax.
We will also simultaneously bill you for our success-based commission.
We will offset both documents against each before payment so that you will not have to physically pay the invoice via bank transfer.
Again, whether our invoice to you contains value-added tax will depend upon the country in which you are domiciled.
Germany: 19% VAT
Germany + "Kleinunternehmer": 19% VAT
Within EU with EU VAT ID: No VAT
Within EU without EU VAT ID: 19% VAT
Non-EU countries: No VAT