{"id":22185,"date":"2020-12-17T12:31:36","date_gmt":"2020-12-17T07:01:36","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=22185"},"modified":"2020-12-17T14:16:06","modified_gmt":"2020-12-17T08:46:06","slug":"is-trademark-is-an-intangible-asset-for-msmes-or-an-expense","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/is-trademark-is-an-intangible-asset-for-msmes-or-an-expense\/","title":{"rendered":"Is Trademark an Intangible Asset for MSMEs, Or an Expense?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">With the ferocious\ncompetition in the worldwide market, novel thought and ideas have to consider\nas an essential &amp; significant asset for any economic activity to succeed\nand flourish. These novel thoughts are considered as an intangible asset under\nthe regime of IPR. It increases the commercial cost of the business by\nexpressing creativity.<\/p>\n\n\n\n<p>The Indian government has recently introduced the Make in India drive, which will produce it even more considerable for assisting the <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSMEs<\/strong><\/a>. Make in India Drive prepared a trademark as the most important intellectual property asset for the Micro Small &amp; Medium Enterprises. The symbolic importance of the trademark in MSME is due to the comprehensive purview of branding.<\/p>\n\n\n\n<p>A trademark is a mark\ncompetent to distinguish one business&#8217;s goods or services from other\nbusinesses. Trademark gets protection under the regime of IPR.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/is-trademark-is-an-intangible-asset-for-msmes-or-an-expense\/#What_Intangible_Asset_Term_Denotes\" >What Intangible Asset Term Denotes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/is-trademark-is-an-intangible-asset-for-msmes-or-an-expense\/#Understanding_the_Connection_between_Brand_and_Trademark\" >Understanding the Connection between\nBrand and Trademark<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/is-trademark-is-an-intangible-asset-for-msmes-or-an-expense\/#Influence_of_Trademark_on_MSMEs\" >Influence of Trademark on MSMEs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/is-trademark-is-an-intangible-asset-for-msmes-or-an-expense\/#Valuation_of_Trademark_in_MSMEs\" >Valuation of Trademark in\nMSMEs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/is-trademark-is-an-intangible-asset-for-msmes-or-an-expense\/#Trademark_For_MSMEs_Is_An_Intangible_Asset_Not_Expense\" >Trademark For MSMEs Is An\nIntangible Asset, Not Expense.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/is-trademark-is-an-intangible-asset-for-msmes-or-an-expense\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Intangible_Asset_Term_Denotes\"><\/span>What Intangible Asset Term Denotes?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An intangible asset is\nan advantageous ability without physical existence. Patents, licenses,\ncopyrights, broadcasting rights, trademarks, and goodwill can be considered\nintangible assets. Such assets generate financial advantages for the\nenterprises, but no one can touch them like other physical assets.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Asset Classification<\/h3>\n\n\n\n<p>The assets can be classified in to below mentioned categories.<\/p>\n\n\n\n<ul><li><strong>Convertibility<\/strong>: &#8211; Fixed Assets&nbsp;&amp; Current Assets&nbsp;<\/li><li><strong>Physical Presence:-<\/strong> Intangible Assets &amp; Tangible Assets&nbsp;<\/li><li><strong>Usage<\/strong>: &#8211; Operating Assets and Non-operating Assets<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Types of Intangible Asset<\/h3>\n\n\n\n<p><em><strong>The below-listed are the types of intangible asset<\/strong><\/em><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"1000\" height=\"1000\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Types-of-Intangible-Asset.png\" alt=\"Types of Intangible Asset\" class=\"wp-image-22224\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Types-of-Intangible-Asset.png 1000w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Types-of-Intangible-Asset-150x150.png 150w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Types-of-Intangible-Asset-300x300.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Types-of-Intangible-Asset-768x768.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure><\/div>\n\n\n\n<ul><li>Goodwill is an intangible asset, i.e.,\nidentified when one business obtains another business. Goodwill equals the value\nof the business&#8217;s value by the purchasing company minus the value of net assets\nof the purchased company. It shows the business reputation of a company.<\/li><li>A patent is an intangible asset that allows a\nbusiness the exclusive right to production, use a specific invention, or sell.<\/li><li>Copyright is a comprehensive right to business\nto reproduce and sell software, journal, book, magazine, etc. It is an\nintangible asset available to secure legal protection by preventing others from\nreproducing or publishing authorship work.<\/li><li>Trademark is an intangible asset that protects\nothers from using a business\u2019s name, logo, or other branding items. It is a\ndesign, symbol, or logo used related to a particular product or a business.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_the_Connection_between_Brand_and_Trademark\"><\/span>Understanding the Connection between\nBrand and Trademark<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The brands existing in today&#8217;s market become more abstracted and emerged adequately. The important part of enterprises contains images, character, identity, reputation, etc. The Logo introduced by the brand is the symbol of their identity in the market. The Micro, Small, and Medium Enterprises brand, through its image, character, identity, etc., helps to recognize them from their competitors existing or further come in existence to compete them in the vast market.<\/p>\n\n\n\n<p>When MSMEs have their <a href=\"https:\/\/corpbiz.io\/trademark-registration\"><strong>registered trademark<\/strong><\/a>, it is possible to stop legally to their competitors by using their mark.&nbsp;Trademark&nbsp;plays a vital role in protecting an MSME\u2019s brand from losing prestige &amp; maintains a trustworthy relationship with their customers. The MSMEs which has been trademarked can enhance value as an intangible asset to use as an ancillary to acquire monetary benefit from various financial institutions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Influence_of_Trademark_on_MSMEs\"><\/span>Influence of Trademark on MSMEs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In India, the MSME&#8217;s\ndepend on the not unusual place regulation of tort of passing off to defend the\nlogo call, logo, layout, image, etc. That lets the clients discover them within\nside the market. This method is largely the excellent Indian method of taking\nadvert measures to boost long-term planning, leading to cost-saving measures.<\/p>\n\n\n\n<p>The trademark is an\nintangible asset for MSMEs. Like another property of MSMEs, the emblems can\nalso be sold, certified, or bought from different MSME or MNC according to the\nneeds. Likewise, it is viable for an MSME to promote their whole enterprise\neven as keeping manipulate in their logo names, logos, layout or image that has\nbeen trademarked after which license that Trademark similarly to numerous\nmanufacturers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Point to Remember<\/h3>\n\n\n\n<p>In case the Trademark is not incorporated, the affected party cannot\nestablish an infringement suit in a court of law. Still, it can only commence a\nlawsuit under the common law tort of passing off and giving the prior usage of\nthe name to a court of law and then obtaining an injunction against the\ninfringer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Valuation_of_Trademark_in_MSMEs\"><\/span>Valuation of Trademark in\nMSMEs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The valuation of trademarks follows the \u2018Rules on Appraisal\u2019. However,\nthe valuator&#8217;s subjective thoughts are highly likely that valuation may be\nimpacted because the valuation process is not specified under the rule.\nFurthermore, the valuation may be formed uniformly because several valuation\nways are not fully availed. <\/p>\n\n\n\n<p>Trademarks are important because if the entrepreneurs prepare a quality\nproduct, they want to assure that customers can identify their product without\nany state of a dilemma with other products, especially other lower quality\nproducts. Reputation is important to stay in the market for a long time &amp;\ntrademarks protect your reputation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Trademark_For_MSMEs_Is_An_Intangible_Asset_Not_Expense\"><\/span>Trademark For MSMEs Is An\nIntangible Asset, Not Expense.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MSMEs are one of the leading sectors contributing to the Indian economy.\nHowever, there is a lack of awareness among the entrepreneurs about IPR\nprotection.<\/p>\n\n\n\n<p>The Indian government has taken various steps to spread knowledge about IPR protection amongst MSMEs by making many amendments in the IP laws, reviving IPR offices, and digitization for filling an application to protect IPRs.<strong> Intellectual Property<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Intellectual_property\"><strong>[1]<\/strong><\/a><\/sup> awareness scheme was started by the unit of IPR promotion &amp; management to assemble and advertise IP culture in the nation to increase the awareness of IPR amongst the entrepreneurs:-<\/p>\n\n\n\n<ul><li>On dated September 16, 2019, the government has\ndeclared devaluation in fee for the filing of IPRs by MSME enterprises. The\nofficial fees for trademarked has been decreased by the 50% of its previous\ncost.<\/li><li>Ministry had also introduced a new blueprint\nunder which the MSMEs will get financial aid to file IPR protection\napplications amounting to up to Rs 10,000 for trademark.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It can be acknowledged and concluded that the registered trademark could protect MSME and act as an intangible asset for MSMEs. It can offer safety to MSME&#8217;s logo from a lack of status and strengthen some of the customers&#8217; connections. Use of Registered Trademarks through MSMEs can advantage them by stopping others from using the identical or deceptively comparable logo or brand within side the lengthy run. &nbsp;Kindly contact with <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> in order to know more about the importance of trademark under the MSMEs Sector.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/positive-and-negative-factors-of-the-implication-of-gst-under-msmes\/\">\nWhat are the Positive and Negative Factors of the Implication of GST under MSMEs?\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the ferocious competition in the worldwide market, novel thought and ideas have to consider as an essential &amp; significant asset for any economic activity to succeed and flourish. These novel thoughts are considered as an intangible asset under the regime of IPR. It increases the commercial cost of the business by expressing creativity. The [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":22191,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[176],"tags":[1330],"acf":{"service_id":"71"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":17862,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/22185"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=22185"}],"version-history":[{"count":12,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/22185\/revisions"}],"predecessor-version":[{"id":22227,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/22185\/revisions\/22227"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/22191"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=22185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=22185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=22185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}