[quote=njtosd]
Are you licensing (as you said earlier) or selling (usually referred to as “assigning”). In real estate terms it’s the difference between selling a home and renting it out.[/quote]
I don’t know that I’m clear on the semantics you are asking. (Or maybe I wasn’t clear earlier) But I’m granting an exclusive perpetual right to use my copyright and that’s what the regulation seems to hinge on. (And if I read this correctly, the regulation says this is a sale of the copyright right) If the right is limited to less than the expected useful life or if the right is not exclusive, then you probably don’t qualify for treating the money as capital gains. (Instead it is renting the copyright right)
Also, the regulation specifically points out it doesn’t matter if you call it royalties or not so I would think that using the word licensing would not matter either. (Although I’m no expert, I’m relying on the advice given by professionals, so don’t take my word on it)
