2009 (4) TMI 113

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....Heard both sides. 3. The relevant facts are that the appellant is engaged in the manufacture of medicines; that they entered into collaboration agreement dated 19.11.90 with M/s. Mundipharma A.G. Switzerland; that they received 'Know-How' in the form of certain information, data, drawing and secret formula for the manufacture of variety of P.P. medicines; that based on such "Know-How", and process and the formula, the appellant has been manufacturing products in the brand names which are registered in their own name in India; that for the services rendered by the foreign based M/s. Mundipharma A.G. Switzerland, royalty shall be paid at rates prescribed in the said agreement for the period 5 years/10 years from the commencement of p....

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.... be governed by Intellectual Property Laws. They are not property as Mundi-pharma A.G. does not get right in respect of the said knowledge. The appellant was permitted to use the secret information in pursuance of the agreement and for the said purpose royalty was paid to Mundi-pharma A.G. Switzerland. The transfer of Know-how is not a transfer of IPR protected by any Indian Law to attract the service tax as IPR services. 4.3 He also submits that even if services are held to have been received such services prior to 18.4.2006 are not taxable in the hand of recipient as held by the Bombay High Court in the case of Indian National Shipowners Association Vs. UOI, reported in 2009 (92) RLT 651 (Bom.) = AIT - 2008 - 475 - HC. In other words, th....

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....r non-disclosure contracts. Unlike patent or trade mark, the attribute of protection of confidential information in the know-how gives perpetual monopoly in such secret information which does not expire over a period of time as is usual for the protection in form of validity period granted to patents and copyrights. Where trade secrets are recognized, the creator of property regarded as trade secret is entitled to regard some special knowledge as intellectual property. A trade secret is such sort of information, that is not generally known to the relevant portion of the public, that confers some sort of economic benefit on its holder and which is the subject of reasonable efforts to maintain its secrecy. Trade secrets are, however, not prot....

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....how cause notice it is alleged that the appellant was granted exclusive right to manufacture, use and sell within the territory, the preparation utilizing the know how and scientific and technical information and the teachings of the patents on payment of royalty. It is also alleged in the show cause notice that the appellant was receiving know-how during the disputed period. However, from the agreement it is noticed that there is no evidence of continuous providing of information, know-how in relation to the manufacture. Further, it is not disputed that the appellant was manufacturing and selling products in the brand names, Pyricontin, Diacontin, Fecontin, Metocontin, Morcontin, Nitrocontin, & Unicontin which are claimed to be registered ....