Theoretical aspects of recognizing the intellectual property as work for hire

The value of intellectual property is now growing by the day in view of globalization of economic processes and integration of the Russian Federation into the world economy. The need for development of legislation in the field of intellectual property, improvement of legal mechanisms to protect the intellectual deliverables is dictated by a market economy, changes in social relations, as well as the inconsistency of regulatory enforcement, which prevents from proper implementation of the individual's rights in the sphere of intellectual property realization. Over the past decade, the entrepreneurial activity has demonstrated an increase in a number of facts of recognition of the intellectual property created by an employee as work for hire (WFH). Under these procedures, both employers and employees often make mistakes that subsequently lead to such items being non-protectable. The point is that the current legislation has no procedure or criteria to recognize the intellectual property created by employees as WFH. However, failure to observe the procedures regulated by tax legislation when recognizing the results of an employee's intellectual activity as WFH poses a high risk for instituting administrative action against the employer. In this paper, we will try to determine the procedure and criteria for recognizing the results of an employee's intellectual activity as WFH.