Re: Everyone does it
What makes you say it's extortion and expropriation? Just because you like the idea of these brown mofos behaving like beasts? You may find it difficult to believe but India has a properly run, though slow and tedious, legal system that is NOT beholden to the government at all! It regularly makes life VERY difficult for the government and acts in the interests of justice, sometimes at the expense of law.
Compare that with, let's say, the UK. Vijay Mallya, Nirav Modi - literally every criminal fraudster in India runs off to the UK because he knows that the UK, despite having an extradition treaty with India, will never extradite anyone who is sufficiently rich - legalized, organized, system-approved corruption - follow the law, even when it does not meet the ends of justice.
As for IP, royalties and so on, I have been running companies since 2005 - all of which have American arms and Indian ones, so all of them have IP, royalties, transfer pricing and so on in place. And not once have I faced any trouble. You know why? Because I am careful - I make sure we have copious documentation, proper planning, clear agreements, solid filings...
Simple truth that applies all over the world - it's best to minimize your dealings with the government, and the best way to do so is to make sure that you follow the rules and prepare ample documentation. As the old folks used to say - measure 5 times, cut once. Too many companies eff this up and then blame the BIG BAD GOVERNMENT (especially if it's run by brown, yellow, or black folks), because they don't want to accept that they screwed up.