Relief for Crocin: Trademark transfer not taxable

In a major decision impacting cross-border intellectual property deals, the Bombay High Court has ruled that the sale of the famous pain-relief brand 'Crocin' to a UK company amounts to an export and is therefore not liable to Maharashtra sales tax.

- Urvi Mahajani

A bench of Justices MS Sonak and Advait Sethna overturned a 2010 Maharashtra Sales Tax Tribunal order that had held the sale taxable at 4% under the Bombay Sales Tax Act, 1959.

The dispute revolved around the brand acquisition agreement signed on January

The court stated that the transfer extinguished all rights of the Indian seller and shifted the trademark's situs (location) to the UK

Registration does not determine where a trademark exists or is located for purposes of taxation