Food brands in India abandoning registered rights to avoid “trademark tax”; expert decries short-sighted reaction

Reports have emerged of a number of food traders in India giving up their registered trademarks to avoid a newly implemented 5% goods and services tax. One senior IP expert confirmed to World Trademark Review that this new tax affects both domestic and international companies, but accused companies giving up trademark registrations as taking a “myopic outlook” as the benefits of a trademark far outweigh a 5% tax outlay.