[Commons-Law] where is an intellectual property?

[Prashant Iyengar]

Hi,
The Authority for Advanced Rulings on Income Tax in India has recently
held that intellectual property (which is treated as a capital asset
for IT purposes)  is located everwhere it is used, so that when an
Australian beer company (Fosters), which had licensed its brand to
indian manufactures for use in India, tranferred its trademarks to a
UK company, the transfer amount would be taxable as an income arising
in India.
"  The situs of these intellectual property assets, in our view,
should not be traced and confined only to the place where the contract
(India S&P Agreement) was entered into and acted upon by the parties.
On the relevant date of transfer, they were very much present in India
and the transfer of such assets took place concurrent with the
transfer of controlling interest in Foster's India to SAB Miller.  At
best, their location in Australia is only notional or fictional.  The
fact that the trade-marks and names originated in Australia and
initially registered there does not make material difference."

Decision at
http://rulings.co.in/ruling/show_ruling/40.html

Article by TCA Ramanujan at
http://www.businessline.in/cgi-bin/print.pl?file=2008081650440900.htm&date=2008/08/16/&prd=bl&