Sum paid for a property likely to come into existence and payment for brand building isn’t ‘royalty’

IT/ILT : Payment received by foreign company from Indian franchisee for international marketing activities is not "royalty" under Article 12(4) of DTAA even if its on the basis of % of gross revenue. In order to cover any amount within the purview of "royalties" as per Article 12 (4) of the DTAA, it is imperative that the payment must be a consideration for use or right to use any copyright of the literary artistic work etc. or any patent, trademark etc. (collectively referred to as the 'defined