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May 15, 2023

Practice Work Shop (PWS) On “Whether Transfer Pricing Manipulation Of Intellectual Property Is Detrimental To Rights Of The IP Owner?”

Featuring: Priyanshi Rastogi

During last week’s PWS Session, Priyanshi Rastogi (Trainee Associate) led a discussion on “Whether Transfer Pricing Manipulation of Intellectual Property is Detrimental to Rights of The IP Owner?”. The session commenced with a brief discussion on the applicable transfer pricing regulation and methods for valuation of IP in India. The members discussed and debated the incorporation of a tax (based on self-declared valuation of IP) at the time of registration as a means to offset the loss of tax revenues from IP-related tax base erosion and profit shifting. The members also discussed whether transfer pricing and valuation of intellectual property impacts a trademark owner’s legal claims in contentious matters and on a proprietor’s ability to commercialize its intellectual property.

The session concluded with members evaluating whether the introduction of self-declared IP valuation as a pre-requisite for IP registration could adequately address the issue of transfer pricing manipulation of IP for tax avoidance.

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