A critical analysis onto the conundrum of valuation of IP assets as part of liquidation process under IBC, 2016

Title

A critical analysis onto the conundrum of valuation of IP assets as part of liquidation process under IBC, 2016

Creator

Shaji, Angel; Shilpa, M.L.

Description

This study critically examines the valuation of Intellectual Property (IP) assets during the liquidation process under the Insolvency and Bankruptcy Code (IBC), 2016, emphasizing its profound impact on creditor recovery and the efficiency of insolvency proceedings. The research employs a rigorous mixed-methods approach, combining qualitative analysis of high-profile case studies with quantitative assessments of valuation methodologies, such as market, income, and cost approaches. The central research issue revolves around the complexities and challenges of accurately valuing IP assets, which are often unique and lack direct market comparables. The study also scrutinizes the regulatory framework and the pivotal role of registered valuers in ensuring transparent and equitable asset valuation. The findings reveal that precise valuation is not merely a procedural requirement but a critical determinant of liquidation outcomes, influencing the overall recovery rate for creditors and the viability of IP-backed financial instruments. The paper argues that the meticulous calculation of discount rates and adherence to standardized valuation practices can significantly enhance the credibility of the insolvency process, attract more substantial investments, and ultimately lead to superior financial recoveries. This research provides vital insights and robust recommendations for policymakers, legal professionals, and financial analysts, advocating for a more refined and transparent approach to IP asset valuation under the IBC, thereby strengthening India's insolvency framework and market integrity. 2025 Malque Publishing. All rights reserved.

Source

Multidisciplinary Science Journal;Volume;7;Issue;6;Article No.;e2025282;

Date

01-01-2025

Publisher

Malque Publishing

Subject

business environment; intellectual capital (IC); intellectual property; investment; liquidation

Coverage

Shaji A., School of Law, Christ Deemed to be University, Bengaluru, India; Shilpa M.L., School of Law, Christ Deemed to be University, Bengaluru, India

Rights

All Open Access; Gold Open Access

Relation

ISSN: 26751240;

Format

online

Language

English

Type

Article

Identifier

https://doi.org/10.31893/multiscience.2025282

https://www.scopus.com/pages/publications/85218875381?origin=resultslist