Royalty on trademark and brand name permitted under automatic route; calculation tied to net sales after specified deductions. Royalty for use of a foreign collaborator's trademark and brand name is payable under the automatic route and, where technology transfer occurs, is subsumed by the technology royalty. Royalty must be calculated as a percentage of net sales, with net sales defined as gross sales less agents'/dealers' commission, transport costs including ocean freight, insurance, duties, taxes and other charges, and the cost of raw materials, parts and components imported from the foreign licensor or its subsidiary/affiliate.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Royalty on trademark and brand name permitted under automatic route; calculation tied to net sales after specified deductions.
Royalty for use of a foreign collaborator's trademark and brand name is payable under the automatic route and, where technology transfer occurs, is subsumed by the technology royalty. Royalty must be calculated as a percentage of net sales, with net sales defined as gross sales less agents'/dealers' commission, transport costs including ocean freight, insurance, duties, taxes and other charges, and the cost of raw materials, parts and components imported from the foreign licensor or its subsidiary/affiliate.
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