1. USCo is a video gaming company located in the US. Its most recent video game called Civilization 1.0 is sold to customers in the US but recent market research has indicated that this game will have market demand in China. To tap into this market demand, USCo has decided to enter into a cost sharing arrangement (CSA) with its wholly owned subsidiary in China (Chinaco). Under this CSA, Chinaco will collaborate with the US to develop Civilization 2.0 to be sold in China while US will retain the rights to commercially exploit this version in the rest of the world (ROW). Chinaco does NOT contribute any pre-existing intangibles to the CSA. As per the US regulations, Chinaco has to make a PCT payment to USCo for the pre-existing intangibles that are being contributed to the CSA. a) Please define clearly what the pre-existing intangibles are (for which Chinaco needs to make a PCT payment)