Intangible Personal Property

Intangible personal property is property that has no intrinsic value but is merely representative or evidence of value. Common examples include securities (both public and private), copyrights, royalties, patents, personal service contracts, installment obligations, life insurance and annuity contracts, and partnership interests. Described another way, intangible personal property is personal property (other than real property) whose value stems from its intangible elements rather than from its specific tangible (physical) elements.

Although the Code does not provide a concise definition of intangible personal property, it does provide several examples. For example, Section 936(h)(3)(B) defines intangible property to mean any --

• copyright, literary, musical, or artistic composition;
• patent, invention, formula, process, design, pattern, or know-how;
• trademark, trade name, or brand name;
• franchise, license, or contract;
• method, program, system, procedure, campaign, survey, study, forecast, estimate, customer list, or technical data; or
• any similar item, which has substantial value independent of the services of any individual.

Intangible property is also frequently "bundled" with tangible or real property. Examples include a work of art and its copyright, or mineral rights and the real property from which the minerals are derived.