1. 1 Brands

2. 2 What am I? I have no legal meaning, there is no legislation about me, people get really exicited by me and rarely do any 2 people agree what I am, but it is claimed I am very valuable.

3. 3 Brands Definition: ‘Brands’ - ISO 10668 ISO 10668 is an International Standard for ‘Brand Valuation’ published in September 2010. It includes a ‘definition’ of “brand”: “marketing-related intangible asset including but not limited to, names, terms, signs, symbols, logos and designs, or a combination of these, intended to identify goods, services or entities, or a combination of these, creating distinctive images and associations in the minds of stakeholders, thereby creating economic benefits/ values.”

4. 4 Brands Definition: ‘Brands’ –ISO 10668 (cont.) In an overview of ISO 10668 published jointly by the Australian Marketing Institute and Brand Finance in August 2011 it was commented: “A more specific description is required in a valuation report; this must clearly identify and describe the specific legal rights that are the subject of the valuation. The need for clarity is heightened by different uses of the term ‘brand’; in some instances it refers to a trade mark, on other occasions it refers to a bundle of intellectual property such as recipes, formulations and design rights, in addition to trade marks.”

5. 5 Brands Goodwill UK Court definition (IRC v Muller [1901]) “It is the benefit and advantage of the good name, reputation and connection of a business. It is the attractive force which brings in custom. It is the one thing which distinguishes an old-established business from a new business at its first start.” Lord Macnaghten

6. 6 Brands Goodwill & Trade Marks “If an injunction be granted restraining the use of a word or name, it is no doubt granted to protect property, but the property … is not property in the word or name, but property in the trade or goodwill which will be injured by its use.” Parker J in Burberrys v JC Cording

7. 7 Brands Unregistered Marks It is a principle of common law that unregistered trade marks are not assignable in gross, but only assignable in connection with the goodwill of the business concerned in the goods to which the mark was referable. Recently applied in Iliffe News & Media v HMRC

8. 8 Brands Scenario 1 –Newly formed Company A begins trading in territory A –Company A uses a trade mark whose registration is owned by affiliated Company Z resident in territory Z, –Company Z is known and respected worldwide in the trade and Company A wants a ‘flying start’

9. 9 Brands Scenario 2 – Company T has operated for many years in Territory T using a registered trade mark. –It transfers the trade mark registration, to an affiliate - Company S resident in territory S –Company T then licenses use of the trade mark from Company S

10. 10 Brands What am I? An interesting race track and an expression to be avoided in transfer pricing discussions

11. 11 Contact Details Mark Carnduff Senior Transfer Pricing Advisor, Business International, C.T.I.A.A., 3C/01, 3rd Floor, 100 Parliament Street, LONDON, SW1A 2BQ, United Kingdom Tel: +44 (0)7147 3342 E-mail: mark.carnduff@hmrc.gsi.gov.ukmark.carnduff@hmrc.gsi.gov.uk