GIFT City Aims to Attract Global Reinsurers and IP

“We have set up an expert committee which is examining how we can also host IP in a better and attractive way. Today many Indian companies are registering their IPs outside the country. It is not a good sign. We believe there is an opportunity here to provide jurisdiction here which will attract Indian and foreign companies to register in GIFT City.”

“The worldwide earnings on IP in terms of royalty and dividends in 2023 was around $501 billion. The countries who earned it are largely the US, Japan and China has a large in R&D. India’s share in this was 0.5 percent.”

“By creating a specialised institutional mechanism for IPR services within an international financial jurisdiction, GIFT IFSC can offer a transparent, streamlined approach to attract start-ups, multinationals, R&D-driven enterprises, and IP-intensive sectors. The expert committee can help GIFT IFSC develop fast-track, globally benchmarked IP registration processes, making life easy for innovators. A single window advisory for patent, trademark, design, and copyright registration—combined with IFSC’s regulatory flexibility—would enhance ease of doing business for companies operating across borders. A significant advantage is the creation of a single-window advisory mechanism that can guide companies through global prosecution strategies, enforcement pathways, and cross-border regulatory compliance—areas inherently intertwined with multiple layers of IP laws.”

“However, several hurdles remain. Coordination with national IP offices would require enormous human resources or coordination with many empanelled law firms. Clear regulations defining IFSC’s jurisdiction, enforcement powers, and role in IP registration are needed to avoid complications. At the same time, developing strong technical expertise, bringing in skilled professionals, and ensuring high-quality processes will demand steady, long-term investment. Foreign companies may hesitate to route filings through a new system due to concerns about recognition, treaty compliance, and long-term stability. Finally, awareness among industry, legal practitioners, and international stakeholders needs to be significantly expanded for the model to gain global traction.”

“Successful global SEZs thrive by combining regulatory freedom with strong legal and enforcement systems, creating complete ecosystems for innovation and IP—not just tax incentives. GIFT IFSC has the institutional architecture to follow a similar trajectory for IP in India, particularly in areas such as IP-backed financing, cross-border technology licensing, royalty securitisation, and global dispute resolution. However, the key challenge lies in moving beyond physical infrastructure to building regulatory depth, which includes having clear rules for IP valuation, treatment of IP as a financial asset, insolvency protection of intangibles, and seamless cross-border enforceability of awards.”

“Another critical hurdle is enforcement confidence. International rights holders will only anchor their IP, licensing structures, and disputes in GIFT if outcomes are predictable, time-bound, and globally enforceable, replicating the trust enjoyed by courts and arbitral centres in Singapore and the DIFC. Capacity building of specialist IP arbitrators, valuation experts, and financial regulators is therefore indispensable.”