The business of ideas, and IP’s Indian moment

For many years, intellectual property in India was considered a specialised legal field, predominantly of interest to multinational corporations, technology companies or prominent consumer brands. Today, IP has become central to daily commerce. It affects the valuation of intangible assets by courts, the evaluation of risk by financiers, the management of distressed companies by insolvency professionals, and the launch of startups.

With the startup and MSME ecosystem in India showing an enhanced awareness of trademarks, branding and identity, courts and regulators are being obligated to address the growing complexity of inquiries concerning domain names, spectrum rights, pledges over intangibles, and brand ownership during restructuring.

Bottom of the pyramid

One of the most remarkable developments has been the expansion of IP awareness beyond formal corporate sectors. Small merchants, local retailers, online distributors and even street vendors are all recognising the growing significance of branding.

The development of e-commerce platforms, digital payments, food delivery applications and social media marketing has facilitated expansion in the reach of even the smallest businesses. A local merchant may now attract customers not only from the immediate neighbourhood, but from across the city or through online channels that serve consumers nationwide. A recognisable identity can provide a valuable commercial advantage.

The outcome is the democratisation of trademarks, which were previously perceived as a tool for large enterprises but are now gaining relevance for first-generation entrepreneurs. The trademark framework in India has become more accessible to entrepreneurs and smaller businesses, notably as a result of procedural reforms and e-filing initiatives.

Branding from day one

Today, IP is frequently regarded as an early-stage asset by modern entrepreneurs, rather than an afterthought. Founders are increasingly acknowledging that investors evaluate not only products or services, but also defensible brands and the capacity to scale under a distinctive commercial identity.

The impact of digital identifiers including domain names, app names, website branding and online marketplace identities has been frequently acknowledged in Indian law and commercial practice. These identifiers frequently serve the same source-distinguishing function as traditional trademarks by assisting consumers in determining the origin, authenticity and reputation of products.

This trend is reflected in recent market activity, where Indian startups in sectors including fintech, cosmetic retail, consumer electronics and digital services derive substantial commercial value not only from physical products or infrastructure, but from brand recognition, digital presence, customer trust and platform identity.

Consequently, the enterprise value of a startup may be substantial even before the business acquires sizable tangible assets, thanks perhaps to the name of its app, its website domain or its logo.

Rise of well-known marks

Companies are actively pursuing the recognition of their marks as well-known trademarks, as evidenced by the expanding list that have achieved this status. This trend is fuelled by the broader and more robust protection that well-known marks are afforded, which may extend beyond the specific products or services for which the mark is registered.

Additionally, this recognition serves to strengthen the organisation’s market position and reputation. It indicates that the mark has attained a high level of public recognition and goodwill, which can be used to enhance licensing or collaboration opportunities, support expansion into new markets, and strengthen consumer trust.

When businesses split

Structural changes including demergers, family settlements and the division of business verticals are becoming more prevalent as businesses expand and develop. These advancements frequently generate intricate inquiries regarding IP ownership and usage, particularly regarding trademarks, trade names and associated goodwill.

The challenge of partitioning intangible assets can be clearly seen in such circumstances. In contrast to physical property, trademarks are inherently indivisible in many cases due to their close association with consumer perception and reputation. Consequently, business separations are becoming more complex and necessitate meticulously organised arrangements to guarantee clarity and prevent potential future disputes.

Intangible asset questions

The classification of particular rights – such as spectrum allocations – as intangible assets with proprietary characteristics, or solely as regulatory permissions, is a developing legal issue. In litigation involving lenders, including proceedings initiated by the State Bank of India, questions of this nature have also arisen, where the commercial character and enforceability of such rights were examined.

Modern commerce depends not only on physical assets, but also on valuable rights generated through licences, authorisations and exclusive use arrangements, making issues of this nature more pertinent.

The resolution of such issues may have broader implications for the way in which Indian law conceptualises intangible property. Valuation, transfer, and use as security in commercial transactions may be feasible if specific rights are acknowledged as assets. Their transferability and enforceability may be restricted if they are rigorously regarded as statutory privileges.

Corporate restructuring issues

The treatment of IP in insolvency proceedings has emerged as a critical domain of commercial law. Questions frequently arise regarding whether IP assets, including trademarks and associated goodwill, form part of the corporate debtor’s asset pool or remain excluded due to separate ownership structures, licensing arrangements or prior assignments when companies undergo insolvency or restructuring.

Judicial developments have demonstrated that disputes regarding IP ownership and control may not always be in direct alignment with the insolvency process, and may necessitate separate adjudication contingent on the nature of the controversy.

When companies attempt to transfer or restructure IP during the insolvency process, additional complications arise. If IP is essential to the business but not obviously vested in the corporate debtor, the viability of a resolution plan may be impacted.

Unauthorised memes, content

It has also become a growing practice for brands to convert copyrighted film scenes, characters and dialogues into “memes” or viral trend content for promotional gain, without appreciating the legal consequences of such use. The mere fact that content becomes popular online or is widely circulated in meme culture does not place it in the public domain, nor does it extinguish the copyright subsisting in the original cinematograph film, screenplay, character depiction, performance elements or dialogue.

Accordingly, the unauthorised creation, adaptation and commercial dissemination of memes based, for instance, on the character portrayed by Rakesh Bedi as Jamil Jamali, including the phrase “Baccha hai tu mera” (You are my child), constitutes infringement when deployed to advertise or promote a brand. Businesses are responsible if they use copyrighted works for marketing, engagement or brand recall without getting permission, a licence or approval from the rightful owners.

Misleading claims

Across jurisdictions, consumer protection and unfair competition laws recognise that commercial messaging must be judged not only by its literal wording, but by the overall impression it creates in the minds of consumers. Where an advertisement, label or campaign conveys a false sense of origin, quality, endorsement, affiliation or approval, businesses may be liable for misleading representation and unfair commercial conduct.

Recent scrutiny surrounding the use of labels such as “Swiss Made” shows that commercial signifiers derive their value from authenticity, trust and reputation, and that misuse can mislead consumers even without an express false statement.

In statements issued in relation to enforcement of the “Swissness” regime, the Swiss Institute of Intellectual Property has emphasised that the value of the “Swiss” designation lies in its credibility, and that misuse must be restrained where it deceives consumers or exploits the reputation associated with Swiss origin.

Legislative reforms

Recent legislative initiatives, including the Jan Vishwas (Amendment of Provisions) Bill, 2026, reflect a broader policy shift towards improving the ease of doing business through rationalised penalties, reduced procedural burdens and a more compliance-oriented regulatory framework. In the IP context, measures of this nature are particularly relevant for startups, smaller enterprises and growing businesses that regularly interact with regulatory systems while building and protecting their commercial assets.

As businesses increasingly rely on brands, technology and other intangible assets, the legal framework must remain efficient, proportionate and commercially practical. Reforms aimed at streamlining compliance and administration can strengthen confidence in the IP system.

Intellectual property has transitioned from the periphery of Indian law to the heart of Indian commerce, where it now determines who competes, attracts capital, commands value and endures.