It's a structure that promotes capital transfers in lax jurisdictions and enables a group to charge members under the authority of a board of directors artificial patent royalties or intellectual property royalties. That's the most common way to carry out transfer pricing.
Consider a business whose brand is very valuable. I don't need to give examples. Patent boxes encourage tax exemption or the reduction of taxes on transfers concerning the right to use a brand. For example, when a multinational group entrusts the brand's property rights to an entity in a tax haven, the entity can then charge royalties to the other multinational group members to transfer the most possible assets into the subsidiary's accounts.