Patents and Royalty Income on Software Can you patent technology and avoid Irish tax? Yep. I watched lawsuits unfold in the Y2K arena a few years ago, when an Irish company secured a Irish patent on encapsulation software. They didn't get a patent in any other company, but they got slapped with lawsuits for patent infringement by an American company. It's happening to SmartForce now.
Irish companies can avoid paying tax on royalties. So if a business process is a patented process, it could be generating royalty income. In Ireland, royalty income is most commonly enjoyed by entertainers. And software developers.
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