In 2005, Sandvik AB implemented a reorganization of ownership and management of intellectual property rights. All Swedish-owned patents and trademarks were transferred to Sandvik Intellectual Property AB (IP Company).
The reasons for this reorganization were the need to gather the activities relating to intellectual property rights into one company to highlight the considerable worth of the intellectual property rights and to gain operational advantages. This reorganization subsequently gave rise to two legal cases relating to taxation – one concerning Sandvik AB and one concerning the IP company. These have been considered in a coordinated action by the Administrative Court and the Administrative Court of Appeal.