IA Valuation and Management - PPT 13-01-2024.pptx

1
By
INTANGIBLE ASSETS -
VALUATION AND ITS
MANAGEMENT

Intellectual Property Right(IPR) –
Understanding & Practice
Part I : Intangible Assets
Part II : Intellectual
property rights
Part III : ITA Vs IPR
Part IV : Disclosures
Part V : Valuation- Approaches
and Methodologies
Part VI : Legal Provisions
& Case Studies
Part VII : Role of CS
6

NAME THE MOST POPULAR
ACQUISITION OF AN APP IN
COMMERCIAL AND BRANDING
SENSE???
9

YES. ITS NONE OTHER THAN
WHAT’S APP by FB

What is the cost of
Acquisition???
11

What’s the development cost of
whatsapp???
13
13

Number of Employees @ Whats App???
15
15

WHAT MAKES THE COMPANY TO
HAVE THAT MUCH OF VALUE ???
THAT’S THE POWER OF
VALUATION OF INTANGIBLE
ASSETS
17

SO FRIENDS,
EVERYONE ARE EXCITED TO KNOW ABOUT IA’s
19

KYI-
(Know Your Intangible Assets Knowledge)
ROUND -I
20

Get..
Set…
Go….
With
IPR
21

Maximum marks for each right
answer (1M)
For each wrong answer (0.5M)
negative mark
PART-A- Multiple choice
questions
KNOW YOUR IA’S
KNOWLEDGE(KYI)
22

1. What is IPR?
(a). Artificial Intelligence
(b). Rights given over the Creations of the persons minds
(c). Goodwill
(d). Natural Intelligence
24

 Intellectual property rights are the rights
given to persons over the creations of their
minds. They usually give the creator an
exclusive right over the use of his/her
creation for a certain period of time.
WHAT IS IPR??
26

1. What is IPR?
(a). Artificial Intelligence
(b). Rights given over the Creations of the persons minds
(c). Goodwill
(d). Natural Intelligence
The Correct Option is (b).
28

2. Which of the following is not an IPR?
(a). Copy rights and Trade marks
(b). Designs
(c). Incubators and accelerators
(d). Trade Secret and Database
29

Types of Intellectual Property Rights
30

Let’s have look at the Answer!!
32

2. Which of the following is not an IPR?
(a). Copy rights and Trade marks
(b). Designs
(c). Incubators and accelerators
(d). Trade Secret and Database
The Correct Option is (C).
33

3. What is intangible asset?
(A). Identifiable non-monetary asset
(B). Identifiable monetary asset
(C). Non-performing asset
(D). Contingent asset
34

What is Intangible Assets??
35

37
Intangible Assets
An intangible asset is an identifiable non-
monetary asset without physical
substance. Such an asset is identifiable
when it is separable, or when it arises
from contractual or other legal rights.
Which Cannot be visible with naked eye.
37

Intangible Assets
Noncurrent assets
without physical
substance.
Useful life is
often difficult
to determine.
Usually acquired
for operational
use.
Often provide
exclusive rights
or privileges.
Intangible
Assets
38

What is an Intangible Asset?
39

3. WHAT IS INTANGIBLE ASSET?
(a). IDENTIFIABLE NON-MONETARY ASSET
(b). IDENTIFIABLE MONETARY ASSET
(c). NON-PERFORMING ASSET
(d). CONTINGENT ASSET
Now, the Correct answer is Option (a).
41

4. Which of the following is not an Intangible
asset?
(a). Market share and marketing right
(b). Franchise
(c). Customer supplier relationships
(d). Listing status
42

The main types of intangible assets are goodwill, brand equity, Intellectual properties
(Trade Secrets, Patents, Trademark and Copyrights), licensing, Customer lists, and R&D.
TYPES OF INTANGIBLE ASSETS
4444

Types of Intangible Assets
Intangible assets are those noncurrent economic resources that a company
uses in its operations but have no physical existence.
Patents Goodwill & Copyrights Trademark
45

46
Intangible- Types
Trade mark
Copyright
Patent
Brand
Legal Goodwill
Customer List
Customer Loyalty
In house Intellect
Business
46

Examples:
☺ Licenses
☺ Intellectual property rights
☺ Brand names, publishing titles
☺ Computer software
☺ Patents, copy rights
☺ Motion picture licenses
☺ Customers lists
☺ Franchises
☺ Mortgage services rights
☺ Import quotas
☺ Customer supplier relationships
☺ Customer loyalty
☺ Market share and marketing right
☺ Goodwill
Examples of Intangibles
47

4. Which of the following is not an Intangible
asset?
(a). Market share and marketing right
(b). Franchise
(c). Customer supplier relationships
(d). Listing status
Now the Correct Option is (d)
49

Let’s Understand Intangible assets
50

5. What is the relationship between ITA & IPR?
(a). IPR is an umbrella term for a set of intangible assets
or assets that are not physical in nature.
(b). IA & IPR have physical existence.
(c). An intangible asset & IPR is a physical asset that a
company or person owns.
(d). IA does not have physical existence but IPR have
physical existence.
51

What is the difference between
IPR Vs ITA
52

5. What is the relationship between ITA & IPR??
(a). IPR is an umbrella term for a set of intangible assets or assets
that are not physical in nature.
(b). IA & IPR have physical existence.
(c). An intangible asset & IPR is a physical asset that a company
or person owns.
(d). IA does not physical existence but IPR have physical
existence.
The Correct Option is (a).
55

6. Which Authorities are not Connected with
INTANGIBLE ASSETS?
(a). Geographical Indications Law Tribunal
(b). Regional Director, Ministry of Corporate Affairs
(c). Registrar of companies, Ministry of
Corporate Affairs
(d). The Intellectual Property Appellate Board
(IPAB)
56

What are the Authorities Connected
with INTANGIBLE ASSETS??
57

 Registrar of Trademark, Copyright &
Patent.
 Trademark Tribunal Board.
 Intellectual Property Appellate Tribunal.
 Registrar of Companies, Ministry of
Corporate Affairs.
 Regional Director, Ministry of Corporate
Affairs.
58
AUTHORITIES ….
58

6. Which Authorities are not Connected with
INTANGIBLE ASSETS?
(a). Geographical Indications Law Tribunal
(b). Regional Director, Ministry of Corporate Affairs
(c). Registrar of companies, Ministry of Corporate
Affairs
(d). The Intellectual Property Appellate Board (IPAB)
The Correct Option is (a).
60

7. Who can do Valuation of IPRs?
(i). Merchant Banker
(ii). Registered Valuer
(iii). A licensee duly authorized by the owner of the intellectual
property.
(iv). None of the above
(a) (i) only
(b) (ii) and (iii) only
(c) (i) and (ii) only
(d) (i) (ii) & (iii)
61

By whom the Valuation can
be Done??
62
62

The valuation of INTANGIBLE ASSETS’s will
be done by the Registered Valuer appointed
under the provisions of the Companies Act,
2013.
 By Merchant Bankers.
63
VALUATION ....
63

Let’s have look with the Answer!!
64

7. Who can do Valuation of IPRs?
(i). Merchant Banker
(ii). Registered Valuer
(iii). A licensee duly authorized by the owner of the intellectual
property.
(iv). None of the above
(a) (i) only
(d) (i) (ii) & (iii)
The Correct Option is (C).
65

8. Where the Intangible assets need to be disclosed?
(i) Annual Returns
(ii) Books of Accounts
(iii) Cash Flow Statement
(iv) Boards Report
(a) (i) only
(d) (i), (ii), (iii) and (iv)
66

DISCLOSURE
IS INTAGIBLE ASSEETS Required to
be disclosed as per the law? If so
where?
67

 Books of Accounts
 Financial Statements
 Board’s Report
 Notes to accounts
68
DISCLOSURE
68

69
DISCLOSURE IN BOARD’s REPORT
69

 The books of Accounts shall be
maintained as per the Schedule III of the
Companies Act, 2013 and Intangible Assets
shall be disclosed in the Assets
classification.
70
BOOKS OF ACCOUNTS….
70

IPR IN THE PRE-DOMINANT SECTORS?
71

Sector Intangible Assets Total Assets %
Pharma 22,601 491,163 4.60%
Automotive 182,612 2,424,798 7.53%
Power 42,490 4,106,981 1.03%
Media 11,876 134,902 8.80%
Banking - 26,585,316 0.00%
Telecom 980,636 3,110,090 31.53%
Oil and Gas 367,764 8,014,213 4.59%
Total 1,607,978 44,867,462 3.58%
Disclosure of Intangible Assets in Balance Sheet 2011-12 of 7 Sectors
based on top 5 companies in each sector
72
Disclosure of Intangible Assets
72

Phar
ma
Auto
motiv
e
Power Media
Banki
ng
Telec
om
Oil
and
Gas
% 4.60% 7.53% 1.03% 8.80% 0.00% 31.53 4.59%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
%
Intangible as a % of Total Assets
73

Let’s have look at the Answer!!
74

8. Where the Intangible assets need to be disclosed?
(i) Annual Returns
(ii) Books of Accounts
(iii) Cash Flow Statement
(iv) Boards Report
(a) (i) only
(d) (i), (ii), (iii) and (iv)
The Correct Option is (d).
75

PART-B-Paragraph question(5M)
• Mention any 5 instances of IPR which are
referred in the companies act 2013 as well as
in the companies act 1956 (each answer
carries 1M)
76

INSTANCES OF IPR- REFERRED UNDER COMPANIES ACT,
2013
77
SECTION PARTICULARS GIST OF PROVISION
6 Section 6 of
companies act
2013 Sub
section 3 (ii)-
Explanation
For the purposes of these rules the term "same network"
includes the firms operating or functioning, hitherto or in
future, under the same brand name, trade name or common
control.
Note: 1. Individual auditor shall include other individuals or
firms whose name or trade mark or brand is used by such
individual, if any.
Note:2. Audit Firm shall include other firms whose name or
trade mark or brand is used by the firm or any of its partners.

2013
78
8 Section 8 of
companies act
2013-Names
which
resemble too
nearly with
name of
existing
company-J.
Illustrations-I
& company-K.
Illustrations-III
(l) addition, deletion, or modification of numerals or
expressions denoting numerals in an existing name, unless the
numeral represents any brand;
One 11 Power Equipment Ltd is not the same as One Power
Equipment Ltd, if One 11 represents a brand:

2013
79
16 Rectification of
Name
Section 16 on an application by a registered proprietor of a
trade mark that the name is identical with or too nearly
resembles to a registered trade mark of such proprietor under
the Trade Marks Act, 1999, made to the Central Government
within three years of incorporation or registration or change of
name of the company, whether under this Act or any previous
company law, in the opinion of the Central Government, is
identical with or too nearly resembles to an existing trade
mark, it may direct the company to change its name and the
company shall change its name or new name, as the case may
be, within a period of six months from the issue of such
direction, after adopting an ordinary resolution for the
purpose.

2013
80
54 Issue of Sweat
Equity Shares
Section 54 of companies act 2013 read with rule 8 of sub rule (i)
A company other than a listed company, which is not required to
comply with the Securities and Exchange Board of India
Regulations on sweat equity, shall not issue sweat equity shares
to its directors or employees at a discount or for consideration
other than cash, for their providing know-how or making
available rights in the nature of intellectual property rights or
value additions, by whatever name called, unless the issue is
authorized by a special resolution passed by the company in
general meeting.

2013
81
54 Issue of Sweat
Equity Shares Section 54 of companies act 2013 read with rule 8 of sub rule
(ii) Issue of Sweat Equity Shares (ii) the expression ‘Value
additions’ means actual or anticipated economic benefits
derived or to be derived by the company from an expert or a
professional for providing know-how or making available rights
in the nature of intellectual property rights, by such person to
whom sweat equity is being issued for which the consideration
is not paid or included in the normal remuneration payable
under the contract of employment, in the case of an employee.

2013
82
54 Issue of Sweat
Equity Shares
Section 54 of companies act 2013 read with rule 8 of sub rule
(8) The valuation of intellectual property rights or of know how
or value additions for which sweat equity shares are to be
issued, shall be carried out by a registered valuer, who shall
provide a proper report addressed to the Board of directors
with justification for such valuation.
Section no 2 sub section 88 of companies act 2013 "sweat
equity shares" means such equity shares as are issued by a
company to its directors or employees at a discount or for
consideration, other than cash, for providing their know-how
or making available rights in the nature of intellectual property
rights or value additions, by whatever name called;

2013
83
123 SCHEDULE III "(ii) For intangible assets, the relevant Indian Accounting
Standards (Ind AS) shall apply. Where a company is not
required to comply with the Indian Accounting Standards (Ind
AS), it shall comply with relevant Accounting Standards under
Companies (Accounting Standards) Rules, 2006."], except in
case of intangible assets (Toll Roads) created under ‘Build,
Operate and Transfer’, ‘Build, Own, Operate and Transfer’ or
any other form of public private partnership route in case of
road projects.
(b) Meaning of particulars are as follows :-
Where a company arrives at the amortization amount in
respect of the said Intangible Assets in accordance with any
method as per the applicable Accounting Standards, it shall
disclose the same.]

2013
84
129 SCHEDULE III [(iii) A reconciliation of the gross and net carrying amounts of each class
of assets at the beginning and end of the reporting period showing
additions, disposals, acquisitions through business combinations,
amount of change due to revaluation (if change is 10% or more in the
aggregate of the net carrying value of each class of Property, Plant and
Equipment) and other adjustments and the related depreciation and
impairment losses/reversals shall be disclosed separately.]
(iv) Where sums have been written-off on a reduction of capital or
revaluation of assets or where sums have been added on revaluation of
assets, every balance sheet subsequent to date of such write-off, or
addition shall show the reduced or increased figures as applicable and
shall by way of a note also show the amount of the reduction or
increase as applicable together with the date thereof for the first five
years subsequent to the date of such reduction or increase.

2013
85
129 SCHEDULE III J. Intangible assets
(i) Classification shall be given as:
(a) Goodwill;
(b) Brands /trademarks;
(c) Computer software;
(d) Mastheads and publishing titles;
(e) Mining rights;
(f) Copyrights, and patents and other intellectual property rights,
services and operating rights;
(g) Recipes, formulae, models, designs and prototypes;
(h) Licenses and franchise;
(i) Others (specify nature).

2013
86
281 Submission of
report by
Company
Liquidator
281(1)Where the Tribunal has made a winding
up order or appointed a Company Liquidator, such liquidator shall,
within sixty days from the order,
submit to the Tribunal, a report containing the following particulars,
namely:—
(a) the nature and details of the assets of the company including their
location and value, stating
separately the cash balance in hand and in the bank, if any, and the
negotiable securities, if any, held
by the company:
Provided that the valuation of the assets shall be obtained from
registered valuers for this
purpose;
(b) amount of capital issued, subscribed and paid-up;
(c) the existing and contingent liabilities of the company including
names, addresses and
occupations of its creditors, stating separately the amount of secured
and unsecured debts, and in the

2013
87
281 Submission of
report by
Company
Liquidator
Section 281 (1)case of secured debts, particulars of the securities given,
whether by the company or an officer
thereof, their value and the dates on which they were given;
(d) the debts due to the company and the names, addresses and
occupations of the persons from
whom they are due and the amount likely to be realized on account
thereof;
(e) guarantees, if any, extended by the company;
(f) list of contributories and dues, if any, payable by them and details of
any unpaid call;
(g) details of trade marks and intellectual properties, if any, owned by
the company;
(h) details of subsisting contracts, joint ventures and collaborations, if
any;
(i) details of holding and subsidiary companies, if any;
(j) details of legal cases filed by or against the company; and(k) any
other information which the Tribunal may direct or the Company
Liquidator may consider
necessary to include.

2013
88
455 Dormant
Company
Section 455 sub section 1 of companies act 2013 Where a company is
formed and registered under this Act for a future project or to hold an
asset or intellectual property and has no significant accounting
transaction, such a company or an inactive company may make an
application to the Registrar in such manner as may be prescribed for
obtaining the status of a dormant company.

• PART-C-CASE STUDY
• In the following cases who are the owners of the
copyrights, in terms of the provisions of Copyright Act,
1957?
•
• (1) Musical sound recordings.
• (2) Works by journalists during their employment.
• (3) Painting or portrait drawn at the instance of any person.
• (4) Drafting of examination question papers.
• (5) Book written by a teacher being an employee in a
college.
89

90
• Owners of copyrights
The following are the owners of the copyrights:
• In musical sound recordings: lyricist, composer,
singer, musician and the person or company who
produced the sound recording.
• In works by journalists during their employment: in
the absence of any agreement to the contrary, the
proprietor.
• In works produced for valuable consideration at the
instance of another person: in the absence of any
agreement to the contrary, the person at whose
instance the work is produced.

PRESENT TO YOUR PEER
ROUND -II
92

INTRODUCING YOURSELVES
PRESENT YOUR PEER WITH
THE FOLLOWING
PARAMETERS:
93

• INTRODUCTION AND BACKGROUND
• ANY SPECIAL SKILL
• IPR EXPERIENCE
• TOPIC PRESENTATION
94

NEED FOR INTANGIBLE ASSETS??
95

1. Business Value addition.
2. Distinguish product from similar products.
3. Improve Value for Stake holders.
4. Create a Business Image.
NEED FOR INTANGIBLE ASSETS
96
96

COPYRIGHT FOR MUSICAL WORK??
97

1. "Musical work" means a work consisting of music and
includes any graphical notation of such work but does not
include any words or any action intended to be sung,
spoken or performed with the music.
2. A musical work need not be written down to enjoy
copyright protection.
3. Copyrighted work must be original.
4. Violation of copyright law must be established in the court.
5. Exclusive right to reproduce, issue copies, perform,
communicate, cinematograph film or sound recording,
translation of the work, and adaptation of the work.
COPYRIGHT FOR MUSICAL WORK
98
98

EXPLAIN A PRODUCT WITH
MULTIPLE IPR?
99

 PATENTS
 COPY RIGHTS
 TRADE MARKS
 TRADE SECRETS
EXPLAIN A PRODUCT WITH MULTIPLE
IPR
100
10
0

TRADEMARK REGISTRATION
PROCESS
101
10
1

TASK -1 : Identify the
classification/class of trademark
102
10
2
• Ex :1 - ‘X’ Ltd, is into business of buying and selling of
plots to customers with an option given to customers to
enter into agreement for house construction by ‘X’ Ltd.

TASK -2 : Identify the
classification/class of trademark
103
10
3
• Ex:2 – ‘Zed Pharmaceutical’ an unregistered partnership
firm is into manufacture of animal food and selling on
wholesale basis.

LESSONS LEARNT
104
10
4
1. Identification of number of goods/services is necessary.
2. One company can have either one or more class of
goods/services or both.

TASK -2: IS TRADEMARK AGENT
NECESSARY?
105
10
5
• ‘ABC’ ltd in it’s board meeting decided now to go for logo
registration which they have been using since 2020. They
advised the legal team to apply for trademark
registration and as company policy they don’t want to
involve any consultants who help in registration. Can
they do so?

LESSONS LEARNT
106
10
6
• Trademark agent is optional.
• A trademark can be registered which is in use.

IDENTIFY THE CLASS OF TRADEMARK
FROM THE LOGO?
107
10
7

FROM THE LOGO
108
10
8
[CLASS : 9] COMPUTER HARDWARE,
DATAMODULES, MOTION CONTROL
DEVICES, WAREHOUSE
MANAGEMENT SYSTEM,
CUSTOMERSERVICE MANAGEMENT
SYSTEMS AS USED INBANKS,
AUTOMATIC TELLER
MACHINES,COMPUTERISED
INTERACTIVE MACHINES ALLBEING
GOODS INCLUDED IN CLASS 9.

FROM THE LOGO?
109
10
9

FROM THE LOGO
110
11
0
[CLASS : 32] BEVERAGES, NAMELY DRINKING
WATERS,FLAVORED WATERS, MINERAL AND
AERATED WATERS, ANDOTHER NON-ALCOHOLIC
BEVERAGES, NAMELY, SOFT DRINKS,ENERGY
DRINKS AND SPORTS DRINKS, FRUIT DRINKS
ANDJUICES, SYRUPS, CONCENTRATES AND
POWDERS FOR MAKINGBEVERAGES, NAMELY,
FLAVORED WATERS, MINERAL ANDAERATED
WATERS, SOFT DRINKS, ENERGY DRINKS,
SPORTSDRINKS, FRUIT DRINKS AND JUICES
INCLUDED IN CLASS 32.

FROM THE LOGO?
111
11
1

FROM THE LOGO
112
11
2
[CLASS : 34] Manufactured tobacco,
raw tobacco, tobacco, smokers'
articles, matches, cigarettes,
electronic cigarettes, cigarette
accessories including cigarette
holders, cigars, cigarillos, cigar
accessories including humidors, cigar
ashtrays, cigar matches, cigar cutters,
cigar cases, cigar holders.

FROM THE LOGO?
113
11
3

FROM THE LOGO
114
11
4
[CLASS:1]Chemicals used in industry, science and
photography, as well as in agriculture, horticulture and
forestry; unprocessed artificial resins, unprocessed
plastics; manures; fire extinguishing compositions;
tempering and soldering preparations; chemical
substances for preserving foodstuffs; tanning
substances; adhesives used in industry.[CLASS :
5]Pharmaceuticals, medical and veterinary
preparations; sanitary preparations for medical
purposes; dietetic food and substances adapted for
medical or veterinary use, food for babies; dietary
supplements for humans and animals; plasters,
materials for dressings; material for stopping teeth,
dental wax; disinfectants; preparations for destroying
vermin; fungicides, herbicides.[CLASS : 30] Coffee, tea,
cocoa and artificial coffee; rice; tapioca and sago; flour
and preparations made from cereals; bread, pastries
and confectionery; edible ices; sugar, honey, treacle;
yeast, baking-powder; salt; mustard; vinegar,
sauces(condiments); spices; ice.

FROM THE LOGO?
115
11
5

FROM THE LOGO
116
11
6
[CLASS : 29] MEAT AND MEAT
PRODUCTS, FISH, POULTRYAND
POULTRY PRODUCTS, GAME, SEAFOOD
AND SEAFOODPRODUCTS, FRUITS
AND VEGETABLES, SALADS,
COOKINGOILS, PICKLES, DRIED HERBS,
POTATO-BASED SNACK FOODS.

TASK -3
117
11
7
• Smrti Legal, a registered partnership firm having
registered office at Flat No : 201, Smrti Enclave, Near
Gandhi Nagar, RTC X roads, Hyderabad, Telangana –
500020 represents by its partner Mr. A.Nagraj Kumar
wants to register their logo as they are providing the legal
and business advisory services to its clients. Prepare the
application and apply.

How to check the status of application
filed?
118
11
8
• https://ipindia.gov.in/
• Go to Trade Mark Tab.
• Select Related Links - > Trademark Status
• Select Receipt/Postal Ack tab which is on left side.
• Fill in the cheque/DD details ,enter captcha then
submit.

COPY RIGHT WITH MEDIA INDUSTRY /
FILM INDUSTRY
119
11
9

FILM INDUSTRY
120
12
0

FILM INDUSTRY
121
12
1

FILM INDUSTRY
122
12
2

FILM INDUSTRY
123
12
3

FILM INDUSTRY
124
12
4

COPY RIGHT IN MEDIA
INDUSTRY/FILM INDUSTRY
125

 Copyright in cinematograph films is a bundle of
exclusive rights granted to the creator of the film.
 These rights include the right to reproduce, distribute,
publicly perform, and display the film.
 It occurs when someone violates the exclusive rights
granted to the copyright owner, such as copying a film,
music, artwork, or written content without proper
authorization.
 For those who create and possess cinematic works,
such as movies, TV shows, and other audiovisual
products, copyright protection is a crucial factor
FILM INDUSTRY
127
12
7

FILM INDUSTRY
128
12
8
https://copyright.gov.in/

FILM INDUSTRY
129
12
9
https://copyright.gov.in/

FILM INDUSTRY
130
13
0

FILM INDUSTRY
131
13
1

SECTION 63 - OFFENCE OF INFRINGEMENT OF COPYRIGHT
OR OTHER RIGHTS CONFERRED BY THIS ACT
133
13
3
Any person who knowingly infringes or abets the infringement of—
(a) the copyright in a work, or
(b) any other right conferred by this Act 1[except the right conferred by section
53A],
shall be punishable with imprisonment for a term which shall not be less than six
months, but which may extend to three years and with fine which shall not be
less than fifty thousand rupees, but which may extend to two lakh rupees:
Provided that where the infringement has not been made for gain in the course
of trade or business the court may, for adequate and special reasons to be
mentioned in the judgment, impose a sentence of imprisonment for a term of
less than six months or a fine of less than fifty thousand rupees.

SAMSUNG Vs. APPLE –
IMPACT OF INTANGIBLE ASSETS
 SAMSUNG was found guilty of
Infringing Apple’s patents for I-
PHONE.
 SAMSUNG had to pay USD 1.05
billion in damages to APPLE.
13
5

The assignment deed shall contain the following:
• Introduction of parties.
• Recitals
• Assignment of works
• Consideration
• Assignor’s representations and warranties
• Assignee’s representations and warranties
• Documentation
• Option 1: No further use of works
• Option 2: Non-exclusive license to assignor
• Successors and assigns
• No implied waiver
• Notice
• Governing law
• Counterparts/electronic signatures
• Severability
ASSIGNMENT DEED
137
13
7

INTELLECTUAL PROPERTY RIGHTS
MANAGEMENT
138

1. Identification of all IPRs as applicable to the
company.
2. Reconciliation with already reached IPRs.
3. Registering new IPRs.
4. Structuring IPRs for the financial statements.
5. Assigning IPR.
6. Monitoring and surveillance of IPRs.
7. Protection of IPRS.
INTELLECTUAL PROPERTY RIGHTS
MANAGEMENT
139
13
9

PROTECTION OF IA’s
The protection of
Intangible Assets
Intellectual property
rights
(formal protection)
Copyright
Patent
Trademark
Contracts
(semi-formal
protection)
Non-disclosure
Non-competition
Informal protection
methods
Secrecy
Restrictedaccessto
information
Databaseand
network protection
140

VALUATION METHODS OF
INTANGIBLE ASSETS
141

1. Business Value addition
2. Distinguish product from similar products
3. Improve Value for Stake holders
4. Create a Business Image
Need For Intangible Assets
142
14
2

Commonly used methods of valuation of
ASSETS
143
Discounted cash flow
Comparable transactions method
Multiples method
Market valuation
143

144
VALUATION METHODS
OF INTANGIBLES
COST
APPROACH
MARKET
APPROACH
METHODS
INCOME
APPROACH
144

LEGAL PROVISIONS RELATING TO
INTANGIBLE ASSETS - NATIONAL
145

Legal Provisions relating to
Intangible Assets- National
Patents (Amendment) Act 2005 & Patents (Amendment) Rules, 2006
Trade Marks Act, 1999 & Trade Marks Rules 2002
Copyright Amendment Act 2012
Indian Accounting Standards
• AS26 – Intangible Assets- Recognition, Measurement, Amortisation & Disclosures
• AS14 –Valuation of Intangible Assets acquired by way of Amalgamation
• AS12 – Valuation of Intangible Assets acquired by way of Government Grant
• AS22 – Deferred Tax Assets
• AS19 – Accounting for Leases
• AS21 – Goodwill arising on consolidation
Indian Companies Act
Insolvency and Bankruptcy Code 2016
146
146

INTANGIBLE ASSETS -
INTERNATIONAL
147

INTANGIBLE ASSETS –
INTERNATIONAL
Legal
provisions –
International
• WIPO – World Intellectual Property Rights
Organization
• The Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS)
• THE PATENT COOPERATION TREATY
• International Financial Reporting
Standards(IFRS)
• IAS38 – Intangible Assets
• IAS13 – Fair value Measurement
• IAS 36 – Impairment of Assets
• IFRS 3 – Business Combinations
148
148

• AS-26 should be applied in accounting to all Intangible assets except-
a) Intangible assets covered by another Accounting Standard
b) Financial Assets
c) Mineral Rights
d) Expenditure on the exploration for, or development and extraction of
minerals, oil, natural gas and similar non-regenerative resources an
e) Intangible assets arising in insurance enterprises from contracts with
policyholders.
• It is probable to expect future economic benefits from the assets.
• An enterprise classifies the generation of the asset into two phases:
1) a research phase; an
2) a development phase.
ACCOUNTING STANDARD 26
150
15
0

• IAS 38 is an International Accounting Standard (IAS) that
outlines the accounting requirements for intangible
assets.
• Intangible assets are non-monetary assets that are
without physical substance and identifiable.
• IAS 38 also provides general guidelines as to how
intangible assets should be amortized. The amortization
of an asset should only start when the asset is brought
into actual use, and not before.
• They are identifiable when they are separable, or when
they arise from contractual or other legal rights.
INTERNATIONAL ACCOUNTING
STANDARD (IAS) 38
152
15
2

1. To Act as a Attorney matters relating to Intangible
Assets.
2. To Appear before the Tribunal
3. To Act as Strategies for allotment of the Securities
through the IPR
4. To Draft the Agreements-
a) Assignment Agreement
b) Franchise Agreement
5. To ensure necessary compliances as mentioned in
the law.
6. To arrange the International Funding
7. To set up a company with strategic & financial
Investors
ROLE OF COMPANY SECRETARY…..
154

Show your creativity in saying all the
variations of “Hmmmm…..”
ROUND – III (10 Marks)
155

IA Valuation and Management - PPT 13-01-2024.pptx

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