Query relating to trademark

As per the present scenario this this a very new concept on IP Valuation and its mortgage. This will take some time to accept the intangibility of the IPR to take its course.

Dear Shreya,

IP is an intangible assest. Kingfisher is a well know trademark, it has a reputation and brand. Yes, trademark can be used as a security for loan.

Imagine a Merger and Acquisition, XYZ brand by ABC Corporation.

1) XYZ has 10 million liquidity

2) XYZ has 10 millin movable and immovable properties

3) XYZ is a big brand, it is considered in IP valuation. A price will be fixed as per the profit over the years.

Let me know, if you need further details.

Thanks

Nagaraj

Corporate, Commercial & IP Lawyer

IP Lex Global Services

www.iplexglobal.in

The tangible (T) assetts owned by a company are its Physical properties , namely offices ; infrastructure and other items those are valued by a traditionally established process ; then is the liquid cash holdings of the company which means the revenue streams - which comes in the Prospectus (P) of the company ; then is the Intellectual property owned by the company (IP) ; and then is the Synergy of the company (S) which is the clients catered to and its employees . Typically the ratio of T : P : IP : S = 30 : 30 : 20 : 20 - therefore out of these only the P is considered for effective mortgage .

Dear Shreya, 

In todays world I.P. law has become connected with each and every branch of law hence I.P. should be valued and mortaged but there is no such form for recordal of such mortgage hence such mortgage is still infructuous. 

Hi Shreya

Well very good question. As far as the loan against the IP as collateral is concerned, its a good concept. And yes as you conveyed Kingfisher made it successfully. 

However, the major problem faced is the Valuation put on the IP you are having. Secondly, since, IP is the most valuable property, valuable compared to even the tangibles hence in case you are taking secured loan ensure that you don't lose your IP for the non payment of the same.

Regards

Summit Aggarwal

www.iprindia.in