Merging The Intangibles: Trademark, Goodwill And The Legal Battles Of Brand Value In Indian M&A
- IJLLR Journal
- Jan 17
- 1 min read
Anika Ballal, Symbiosis Law School, Pune
Sannidhi Sawant, Symbiosis Law School, Pune
ABSTRACT
The modern knowledge-based economy has witnessed the worth of a corporation being derived mainly in terms of its intangible assets, where trademarks and goodwill have become the prime movers behind merger and acquisition (M&A) policies. This article discusses merger and acquisition's intangible assets in the Indian context within the framework of legal and commercial environments. Complexity in corporate, intellectual property (IP), and tax laws is discussed through the analysis of the multi-layered regulatory framework encompassing the Companies Act, 2013, the Trade Marks Act, 1999, and the Income Tax Act, 1961. The evolution of the judicial mind, particularly the historic Supreme Court judgment in CIT v. Smifs Securities Ltd., which revolutionized the tax treatment of goodwill at its very core, is analysed through this report. Through a study of high-profile case studies, ranging from the international Rolls Royce takeover to local epics such as Modern Foods and Jet Airways, the research shows that IP due diligence failures are a key reason for deal collapses and value loss. The article concludes by summarizing major commercial and legal conclusions, presenting a collection of practical recommendations for lawyers and highlighting the pivotal position these intangible assets play as India's digital economy keeps on surging forward.
Keywords: Goodwill, Trademark, Brand Value, Mergers
