§235-28  Allocation of patent and copyrightroyalties.  (a)  Patent and copyright royalties are allocable to thisState:

(1)  If and to the extent that the patent or copyrightis utilized by the payer in this State, or

(2)  If and to the extent that the patent or copyrightis utilized by the payer in a state in which the taxpayer is not taxable andthe taxpayer's commercial domicile is in this State.

(b)  A patent is utilized in a state to theextent that it is employed in production, fabrication, manufacturing, or otherprocessing in the state or to the extent that a patented product is produced inthe state.  If the basis of receipts from patent royalties does not permitallocation to states or if the accounting procedures do not reflect states of utilization,the patent is utilized in the state in which the taxpayer's commercial domicileis located.

(c)  A copyright is utilized in a state to theextent that printing or other publication originates in the state.  If thebasis of receipts from copyright royalties does not permit allocation to statesor if the accounting procedures do not reflect states of utilization, thecopyright is utilized in the state in which the taxpayer's commercial domicileis located. [L 1967, c 33, pt of §1; HRS §235-28]