In the case of patents, processes, or trade secrets, one typically uses that patent or process to reproduce or distribute a product or service. One does not reproduce and/or distribute the patent itself. Therefore, we concluded that it was not appropriate to include a subcategory for "rights to reproduce and/or distribute" those types of intellectual property. If your company is paying or collecting fees based on the use of a patent (i.e. patent royalties) to produce pharmaceutical products, automobiles, or other goods, or for the use of a patent or trade secret in the conveyance of a service, please use transaction code 1.1. If your company sells or purchases a patent or trade secret outright, including for the use of that intellectual property in perpetuity, please use transaction code 1.3.