Intellectual Property Valuation In Insolvency Proceedings: Developing India- Specific Standards
- IJLLR Journal
- Dec 6, 2025
- 1 min read
Ayushi Rawat, Jindal Global Law School, O.P. Jindal Global University
Dwijraj Singh Rajvee, Jindal Global Law School, O.P. Jindal Global University
ABSTRACT
Intellectual property (“IP”) constitutes over 80% of global corporate value, yet India’s insolvency regime under the Insolvency and Bankruptcy Code, 2016 continues to undervalue such assets, with errors often ranging between 40–60%. Insolvency proceedings such as Jet Airways, Videocon Industries, and Reliance Communications illustrate how patents, brands, and spectrum rights were reduced to nominal figures, eroding intangible worth and depressing creditor recoveries. This paper undertakes a doctrinal and empirical analysis of IP treatment under the IBC, contrasted with approaches in the United States, United Kingdom, Japan, and Singapore. It argues that although intangibles are formally included within the insolvency estate, the absence of IP-specific provisions on valuation, license protection, and transferability creates systemic legal and economic deficiencies. Drawing on statutory frameworks, judicial precedents, and Insolvency and Bankruptcy Board of India (“IBBI”) data, the paper identifies institutional weaknesses that facilitate the erosion of intangible value. It proposes reforms including amendments to the IBBI Valuation Rules, issuance of intangible asset valuation guidelines, recognition of licensee protections, and establishment of a specialized IP valuation panel. Institutionalizing these standards is critical to safeguarding innovation capital, maximizing recoveries, and aligning India’s insolvency framework with the demands of an innovation- driven economy.
