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



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



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



(b)  A patent is utilized in a state to the
extent that it is employed in production, fabrication, manufacturing, or other
processing in the state or to the extent that a patented product is produced in
the state.  If the basis of receipts from patent royalties does not permit
allocation 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 domicile
is located.



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