Unit 5
Unit 5
5.1 INTRODUCTION
A trademark is a visual symbol that distinguishes the goods or services of one
enterprise from those of the competitors. Trademarks are at the centre of global
business today. They are the major source of product differentiation and non-price
competition in a modern, market driven economy. Consumers come to associate
certain value in terms of performance, durability, price, after-sales service etc. in the
goods sold under specific brands, which may be among the greatest assets of the
enterprise. In the language of the law, brand names are known as trademarks. Several
products, of the same category or of different categories, can be marketed under one
brand name.
In 1940 the then British Government of India passed the Trademarks Act for uniform
and systematic registration of trademarks in India, which came into force on
June 1, 1942. The Trade and Merchandise Marks Act, 1958, which came into effect
from November 25, 1959, replaced it. It became necessary to effect changes in the
trademark law as India joined WTO as an original member in 1995 and it was
obligatory to bring the Indian law in consonance with TRIPS. Hence new Trademark
Act, 1999, repealed the old Act.
The Act of 1999 makes important departures from the Act of 1958 in two important
respects:
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Objectives Trademark Law in
India-I: Registration
After studying this unit, you should be able to: and Rights
• the knowledge or recognition of the trademark in the relevant section of the public
including knowledge in India as a result of business promotion;
• the duration, extent and geographical area of any use of that trademark or of any
promotion of the trademark, or of any registration or application for registration of
the mark to the extent they reflect the use or recognition of the mark;
• that the application for its registration has been filed in India;
• the proprietor has failed to observe, or to secure the observance of the regulations
governing the use of the mark.
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Certification Marks Trademark Law in
India-I: Registration
Certification trademarks certify goods in respect of origin, material, mode of and Rights
manufacture, quality, accuracy or some other characteristics of the goods, which bear
them. They distinguish goods so certified from competing goods which do not carry
the certification mark. Thus, these marks benefit the consumer. The trading
community is not always enthusiastic about these marks. Some examples of
certification trademarks are ISI, Agmark, Woolmark, Sanforized.
Because certification trademarks are functionally different from other trademarks,
which distinguish a trader’s/producer’s goods from those of others, several provisions
of the Trade Marks Act, 1999, do not apply to these marks. These provisions pertain
to
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Protection of Designs and SAQ 1
Trademarks in India
How is a well-known trademark different from a trademark?
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Protection of Designs and
Trademarks in India 5.5 REGISTRABILITY OF TRADEMARK
A trademark which consists of at least one of the following essential characteristics
can be registered.
a) The name of a company, individual or firm represented in a particular or special
manner;
b) The signature of the applicant for registration;
c) One or more invented words;
d) One or more words having no direct reference to the character or quality of the
goods except the exceptions listed in the next section;
e) Any other distinctive trademark; and
f) A trademark which has acquired distinctiveness by use over a prolonged period of
time.
A part of trademark can be registered separately in addition to a whole trademark if it
satisfies the requirements of registration of a trademark. The Act also provides for
registration of the same or similar trademark by more than one proprietors in the case
of honest concurrent use or other special circumstances.
The Act lays down absolute grounds for refusal of registration, as also the relative
grounds for such refusal.
Absolute Grounds for Refusal
The Act debars a trademark from registration if it is not distinctive, or consists
exclusively of marks or indications which have become customary in the current
language and practice. It can not be registered if it consists exclusively of marks or
indications which may serve in trade to designate the kind, quality, quantity, intended
purpose, values, geographical origin, or the time of production of the goods or
rendering of the service or other characteristics of the goods or service. Also, a mark
falling in any of the following categories is not registerable:
• which results from the nature of goods themselves. For example, shape of an
apple used for apples or their packaging;
• which is necessary to obtain a technical result. An exclusively technical shape will
be the one if no other shape will perform its function;
• which gives substantial value to the goods. There may be difficulty in interpreting
this provision.
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The word exclusively is to be noted here. If a mark has a shape of any of the Trademark Law in
India-I: Registration
descriptions given above but has other additional features, it could be considered for and Rights
registration subject to other essential qualifications for a trademark. Also, an
unregistered trademark can continue to have a shape of a description that makes it
ineligible for registration.
Relative Grounds for Refusal
A trademark, save in rare circumstances as of honest concurrent use, to be decided by
the Registrar shall not be registered, if it is identical with an earlier trademark, or if it
is similar to an earlier trademark and covers identical goods and services so as to
cause confusion in the mind of the public.
If a trademark has similarity or identity with an earlier well-known trademark but is
sought to be applied to a different category of goods, it will still not be registered, as it
seeks to exploit a well-known brand for an unfair advantage or may harm the
reputation of the earlier, well-known trademark.
If a trademark violates any law, in particular the law of passing off protecting an
unregistered trademark, or the law of copyright, it is not registered.
Additionally, the following category of marks are also not registrable:
• a word which is the commonly used and accepted name of any single chemical
element or single chemical compound; and
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Protection of Designs and
Trademarks in India 5.6 SIMILAR AND DECEPTIVELY SIMILAR
TRADEMARKS
The word similar is not defined in the Act. However, a trademark is said to be
deceptively similar to another mark if it so nearly resembles that other mark as to be
likely to deceive or cause confusion. The deceptively similar mark includes not only
confusion but deception also. Near resemblance is mentioned in the Act in connection
with registered trademarks in the name of the same proprietor which may closely
resemble each other, so as to deceive or cause confusion in the mind of a user. The
Registrar may require them to be registered as associated trademarks.
The following factors are to be taken into consideration when deciding the question of
similarity:
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to honest practices and should not harm the distinctive character or reputation of Trademark Law in
India-I: Registration
the trademark. and Rights
vi) Import of goods and services bearing a mark similar to a registered trademark can
be restricted by the registered proprietor.
vii) A right holder has a right to restrain the use of his registered trademark as trade
name or part of a trade name or name of business concern dealing in the same
goods or services.
viii) A registered trademark continues to enjoy all the rights available to an
unregistered mark, emerging from common law like passing off action.
ix) Registration confers the right to assign or transmit the trademark to another person
by the registered proprietor.
Exception to Rights
There are exceptions to these rights in certain situations where considerations like
vested rights and concurrent use come into play.
Rights of the prior user
If a person A gets registration for a trademark and uses it and another person B has
been using the trademark from an earlier time, the right of B to use it is not affected
after A’s registration, even if B had not opposed it. However, B’s growth of business
may be affected. But if B’s business has got great reputation, A can even be
restrained from using the trademark despite registration.
Rights to use one’s own name
Registration does not confer a right on the proprietor to interfere with the business of
another person who is using, in a bona fide manner, his own name, or that of his place
of business or any description of the character, quality of goods or services.
Concurrent use
A mark which has been in concurrent use in the same jurisdiction on the same,
similar, dissimilar or different goods is not affected by the registration of the same
mark by another person.
It may be reiterated that there is no exclusive right (i) in parts of a trademark and
(ii) in non-distinctive or other matter common to trade. A matter is said to be common
to the trade when it is in common use in the trade, or when it is open to the trade to
use. It could be a word or a symbol or a get-up which any trader in the trade can use
and no body can claim as his own.
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Protection of Designs and Making, Expunging, Varying the Entry
Trademarks in India
The following general grounds are given for approaching the tribunal which may
make an order as it may think fit for making, expunging or varying the entry:
• Correction of any error or, entering any change, in the name, address or
description of the registered proprietor, or any other entry relating to the
trademark;
• cancelling the entry of a trademark on the register;
• striking out any goods or classes of goods or services from those in respect of
which a trademark is registered.
Similarly, the Registrar, on an application by a registered user of a trademark, and
after giving notice to the registered proprietor, correct any error or enter any change in
the name, address or description of the registered user.
Alternation of Registered Trademark
The registered proprietor of a trademark may apply to the Registrar for leave to add to
or alter the registered trademark in any manner which does not substantially affect the
identity of the mark. The Registrar may refuse the leave or grant it with conditions
and limitations. If the leave is granted, the application will be advertised in the
prescribed manner, if the Registrar thinks it expedient to do so and if there is any
opposition to it, the Registrar will hear the parties, if so required, the then decide the
matter. If the application is not advertised, the trademark as altered shall be advertised
in the prescribed manner.
Adaptation of Entries in Register to Amended or Substituted Classification
No amendment shall be made to the register which would have the effect of adding
any goods or classes of goods or services to those in respect of which the a trademark
is registered immediately before the amendment is to be made or of antedating the
registration of a trademark in respect of any goods or services. However, it will not
apply if the Registrar is satisfied that the compliance with it would involve undue
complexity, and that the addition or antedating would not affect any substantial
quantity of goods or services and would not substantially prejudice the right of any
person.
Non-Use as a Ground for Removal of a Trademark from Register
A trademark may be taken off the register if an aggrieved person files an application
with the Registrar or the AB, on the ground:
• that the trademark was registered without any bona fide intention of the applicant
for registration to use it in relation to the goods or services as contained in the
application, and that, in fact, there has been no bona fide use of the trademark up
to a data three months before the date of the application; or
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• that up to a date of three months before the date of application and a continuous Trademark Law in
India-I: Registration
period of five years, or longer, from the date on which the trademark is actually and Rights
entered in the register, had elapsed, during which there has been no bona fide use
of the trademark.
Cancellation of a Registered User
Registration of a registered user may be varied or cancelled inter-alia on the ground
that the registered user has used the trademark not in accordance with the agreement,
or the proprietor/use has failed to disclose any material facts for such registration, or
that the stipulation regarding the quality of goods is not enforced, or that the
circumstances have changed since the date of registration, etc.
• It provides for only a single register in place of the two in the earlier Act and
simplifies the procedure of registration;
• It prohibits use of some one else’s trademark as part of corporate names or names
of business concern;
5.10 SUMMARY
• The Trade Marks Act, 1940, was the first Act passed by the Government of India
for uniform and systematic registration of trademarks in India. It was replaced by
the Trade and Merchandise Marks Act, 1958, which in turn was replaced by the
trademarks Act, 1999, the present law. The present Act is in consonance with the
requirements of the TRIPS Agreement. Two new features of the present Act are:
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Protection of Designs and (a) it recognizes shape of goods as a trademark, and (b) trademarks are granted for
Trademarks in India services also, besides goods. The Act recognizes collective trademarks and
certification trademarks; it also recognizes ‘well-known’ trademarks which enjoy
different rights.
• The Register of Trademark contains the record of all registered trademarks with
names, addresses and description of proprietors and users, assignments,
transmissions and conditions and limitations binding the users.
• The Act lays down details regarding what kinds of mark can be registered and
what can not be.
• The Registrar after the acceptance of the application advertises it in the Trade
Marks Journal giving opportunity to public to file opposition to the application if
any.
• The Act provides for rectification of the Register for cancelling or varying
registration of a trademark or a registered user of the trademark; and for making,
expunging, or varying an entry.
1. What kind of trademarks can be registered under the (Indian) Trade Marks Act,
1999? Discuss the grounds for refusal of registration of a trademark in India.
2. What are the rights conferred on the proprietor of a trademark by its registration?
Discuss the exceptions to these rights.
2. a) T b) T c) F d) T
3. Only one; however, the fee for each class of goods is payable separately. The
application in the prescribed form is to be filed in the office of the trademark
registry within whose territorial limits the principal place of business in India of
the applicant, or of the first applicant in the case of a joint application, is situated.
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4. The registration of trademark is valid for a period of ten years, but it may be Trademark Law in
India-I: Registration
renewed on payment of prescribed fee from time to time indefinitely. In the case and Rights
of patent, the term is 20 years.
5. a) Rampur, being the name of a place, is likely to be refused registration.
b) Because it is phonetically capable of causing confusion in the minds of the
public with the well-known Colgate brand, it can not be registered as a
trademark to be applied on tooth paste.
Terminal Questions
1. Refer 5.5
2. Refer 5.7
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