Trademark Registration
According to a survey a person listens or sees 1500 trademarks everyday. If we analyze our day to day life we buy things by depending on the brand names only for e.g. when we are out to buy clothes we look for products of companies like Nike, Reebok, Levi’s, Raymond, D&G, Armani etc. The reason we believe in these brand names because of the reputation earned by these brands due to delivering quality and unique goods and services. Hence now we know that the trademarks play such an important role in our lives.
With the advent of globalization the need was felt to protect these marks. In India the marks were earlier protected under the Trade and Merchandise Marks Act 1958, but after TRIPS agreement our country enacted a consolidated Act for trademark protection i.e. Trademarks Act 1999.
Definition of Trademark
A trademark is essentially a method of product differentiation. It is a symbol in the form of a word, device, numbers, alphabets, signs, logos or a label applied to articles of commerce with a view to distinguish from similar goods manufactured by some other trader or manufacturer. Trade mark may include shape of goods, their packaging and colour combination. I would like to site few examples of each category.
A word or other groupings of letters is the most common type of mark. For example IBM, JCB, ICICI Logos are probably the next most common form of mark. A logo can be described as a design which becomes a mark when used in close association with the goods or services being marketed. The logo mark does not need to be elaborate; it need only distinguish goods and services sold under the mark from other goods and services. Examples of logo marks are McDonald’s double arches or Apple Computer’s Apple.
Pictures or drawings of a character or scene are often used as trademarks or service marks. MSN’s Butterfly is a very good example of it. Or a trademark might be a combination of letters and a design, such as IBM.
Slogans from advertising campaigns are also used as trademarks. A slogan which has strong trademark right attached to it is McDonald’s I’m lovin’ it. An inherently distinctive product shape can be a protectable trademark. Coca cola bottle is the best example of product shape which enjoys trademark status.
How to select the Trademark
• If it is a word it should be easy to speak, spell and remember.
• The best trademarks are invented words or coined words. For example though Apple is generic word but its use for a computer is something which makes it invented word.
• Please avoid selection of a geographical name. No one can have monopoly right on it. For example Assam tea.
• Avoid adopting laudatory word or words that describe the quality of goods (such as best, perfect, super etc)
• It is advisable to conduct a market survey and a search at Trademark office to ascertain if same/similar mark is used in market.
Registration
• Application for registration:-
By any person claiming to be the proprietor of trademark used or proposed to be used by him—made in writing in FORM TM-1
Amount payable for TM-1 Rs. 2500 (Two thousand five hundred only).
• Procedure on receipt of application for registration of trademark:-
1)Acknowledgement and search-
• Every application, on receipt, acknowledged by Registrar and search cause by Registrar on request by any person in FORM TM-54
• Fees payable for FORM TM-54 is Rs. 500 (Five hundred only).
• Duration- search report to be made and communicated within 30 days of the receipt of such request.
• Expedited search report- FORM TM-71—issued within 7 working days—fees payable 5 times the ordinary fees i.e. Rs. 2500 ( Five hundred only ).
2) Examination-
• Request for expedited examination of an application for a registration 0of trademark—FORM TM-63 – together with a declaration stating the reasons for the request, on payment of 5 times the application fee i.e. Rs.12500.
(Twelve thousand five hundred only).
• Duration- issuance of examination report within 3 months of the date of such request If Registrar refuses the request- fees refunded. But opportunity of being heard is given before refusal.
3) Objection to acceptance-
Registrar shall communicate objections to applicant in writing
If within 1 month, date of such communication, the applicant fails to comply, the application shall be deemed to have been cancelled.
4) Correction and amendment of application-
FORM TM-16 Fees payable—Rs.500 (Five Hundred only).
Duration as to correction—within 30 days from the date of receipt of the communication
Where applicant intimates the Registrar that he desires to be heard, the Registrar gives notice to hear him after the 15 days from the date of notice.
6) dvertisement of application-
Application for registration shall be advertised in Journal within 6 months of the acceptance of an application. In FORM TM-58—any person may request registrar for particulars of advertisement of a mark—fees payable for the same is Rs.250 (Tow hundred and fifty only).
7) Oposition to Registration-
• Notice ofopposition to be made in FORM TM-5—within 3 months or within such further period not exceeding 1 month from the date in Journal is made available to public.
• Fees payable—Rs.2500 (Rupees Tow Thousand & Five Hundred Only).
• Notice includes—grounds of objections
• Notice of opposition should be published in Journal
• Application for an extension period of notice opposition –made in FORM TM-44—Before the expiry of period of 3 months—fees payable for application Rs.500 ( Rupees Five Hundred Only ).
8) Counter statement-
• A copy of notice of opposition to be served by Registrar to applicant within 3 months
• Counterstatement to be send by applicant in FORM TM-6 with prescribed fees Rs.1000 ( Thousand Only ) within 2 months from the receipt of the copy of the notice of opposition from Registrar by the applicant
• opy of counter statement to be served on opponent by Registrar within 2 months.
9) Evidence in support of opposition
• Evidence submitted by way of affidavit—within 2 months after serving copy of counter statement or within such further 1 month as Registrar may allow.
• Application of extension period of 1 month –made in FORM TM-56 with fees
Rs. 500 (Rupees Five Hundred Only).
10) Evidence in support of application-
• Evidence submitted by way of affidavit—within 2 months after serving copy of counter statement or within such further 1 month as Registrar may allow
• Application of extension period of 1 month –made in FORM TM-56 with fees
Rs. 500 (Rupees Five Hundred Only).
11) Evidence in reply by opponent-
• Within 1 month from the receipt of copies of applicant’s affidavit or within such further period not exceeding1 month as Registrar may allow
• Application FORM TM-56 with Fees Rs.500 (Rupees Five Hundred Only).
12) Hearing and Decision-
a) On completion of evidence—Registrar give notice to the parties of first date of hearing—within 3 months on completion of evidence.
b) Date of hearing- date at least one month after the date of first notice.
c) Any party who intends to appear shall so notify the Registrar in FORM TM-7 wi
th fees Rs.500, (Rupees Five Hundred Only) within 14 days from the receipt of the first notice.
d) Any party which does not notify the Registrar—may be treated as not desiring to be heard.
e) Decision Registrar in writing.
13) Entry in Register
14) Certificate of Registration –issued by Registrar FORM 0-2
Term of Trademark and its Renewal
• Duration of Registration is 10 years
• It can be renewed from time to time
• Application of Renewal, 6 months before expiry, in Form TM 12 with prescribed fees of Rs. 5000/- (five thousand only).
• If no application for renewal then Registrar will send notice under Form TM 03
• Within 6 months after the expiry of Trademark application under Form TM 10 with surcharge Rs. 3000/-(Three thousand only) and Form TM 12 with its prescribed fees.
• After a period of 6 months from expiry of a mark but before completion of 1 year application under Form TM 13 with fees Rs. 5000/- ( Five thousand only )and applicable renewal fees.
• And after expiry of said 1 year period it falls under public domain
• Any person may be other than original proprietor can apply for the trademark registration.
Infringement and Passing off
The ambit of the word infringement is very large, it covers both the instances. Firstly a person not being owner of a trademark uses it to en-cash on another’s goodwill and reputation and secondly a person uses a trademark deceptively similar to that of a registered trademark. When a trademark is registered then only infringement action can be taken and if the trademark is not registered then passing off is the only remedy.
In passing off action plaintiff must prove that
• Plaintiff’s mark is a well known mark with goodwill attach to it.
• Defendant is passing off his own goods as of plaintiff’s goods, through misrepresentation.
• Defendants act is causing loss to the plaintiff, and
• Balance of convenience lies in plaintiff’s favor.
As it is quite difficult to prove all these factors in court of law, the remedy for same will be defeated. On the other hand in case of infringement plaintiff have to show that defendant is using same or similar trademark as that of plaintiff’s.
The main advantage of this is that, in a trade mark infringement proceedings, the infringement will be stopped even in the cases where the infringement does not cause any losses to the plaintiff. The prevention of infringement at this stage helps the mark attain a particular level of fame and reputation without encountering any obstacles. On the other hand, in a passing off proceeding, if due to lack of fame of a mark, the defendant’s use of the mark does not cause any losses to the plaintiff, the mark runs the risk of not being protected and thus the mark can encounter problems in attaining a certain level of fame and reputation which can be achieved through its use by the plaintiff alone.
Even if the classes of goods are different but the trademark is attached with lot of goodwill and reputation and use of such mark or a mark deceptively similar to that of the registered mark can cause harm to its distinctive character and repute then also an action of infringement can be brought. For example Mercedes Benz or Rolce Royce.
Infringement is done by two ways
1) By using the same trademark as of registered proprietor
2) By using the deceptively similar trademark
The term deceptively similar is quite vague so let us consider few instances of deceptive similarity between the trademarks. The legal test for deceptive similarity is whether there is a likelihood of confusion in customers mind because of the two trademarks are similar in sight, sound or meaning. For example THE FAR SIDE is similar in sight, sound or meaning to THE FARRR SIDE, THE FAR SIDES, FAR SIDE, THE PHAR SIDE, and THE DISTANT SIDE. Also, it is important to confirm that words and images are legally similar to each other if they would have the same meaning to a customer. For example, THE LION KING is similar to THE [image of a lion] KING. Another particularly common source of dispute concerns phonetically similar trademarks, such as “Crazy Cat” and “Krazy Kat.” And Airtel and Eiretel Irish telecom service. Example from slide. Not only sight, sound or meaning is important but its appearance i.e. it’s packaging, marketing if similar infringement action can be initiated.
Offences and Penalties
The act provides for certain criminal offences relating to trademarks, trade description etc. that are punishable with imprisonment or fine or both. The offences are as follows:
a) Falsely applying trademark an False Trade Description:-
The trademarks function as identification of a particular good with particular manufacturer or goodwill. . Hence, when a person applies to goods a trademark belonging to another person without his assent, he is deemed to falsely apply the mark. Any person doing so is punishable with imprisonment, for a period from six months to three years and a fine, which may vary from fifty thousand to two lakh.
b) False representation as Registered :
False representation of a trademark as registered is an offence punishable with imprisonment, which may extend up to three years or with fine or with both.
c) Offences by companies :
If the person committing the offence is a company, then the company along with every person responsible or directly in charge at the time of commission of offence shall be deemed to be guilty of the offence. Apart from the person who commits the offence, any person who causes any offence to be committed is also guilty. Thus, a master is made criminally liable for the agent acts contrary to owner’s orders.
d) Threat of legal proceedings :
When a person threats another with an action for infringement of a trademark, the aggrieved may bring a suit against that person for obtaining a declaration on to the effect that the threats are unjustified, and for an injunction against the continuance of threats. He can recover damages also, if he has sustained any. The threats may be communicated through circulars, advertisements. However, this suit will not succeed if the defendant is the registered proprietor of that mark and actions of plaintiff are only forming basis for such threats.
e) Infringement:
In the event of infringement a court may grant injunction, either damages or account of profits, together with or without any order for the delivery up of the infringing labels and marks for erasure or destruction.
The Indian Penal Code (IPC) also has provisions to protect consumers from being deceived by traders or manufacturers for manufacturing/selling counterfeit goods. A consumer can file a criminal complaint against the infringers on the ground of cheating under the provisions of Section 420 of IPC, for deceiving the consumers, concealing the true trade origin of such goods and thereby dishonestly inducing the public to purchase the goods.
Counterfeiting
Counterfeiting is also recognized under Indian Penal Code. A counterfeit is an imitation that is made usually with the intent to deceptively represent its content or origins. The word counterfeit most frequently describes forgeries of currency or documents, but can also describe clothing, software, pharmaceuticals, watches, or more recently, cars and motorcycles, especially when this results in patent infringement or trademark infringement.
Although India does not have separate legislation to address counterfeiting like the United States, statutory remedies both of civil and criminal nature are now available in India. Redress is available in the forms of ex-parte interlocutory injunctions, permanent injunctions, search and seizure orders, rendition of accounts in addition to common law relief in the form of passing off. In fact the new Trade Marks Act has introduced the theory of dilution in case of well known marks.
How it can protect
Prevention is always better than cure and certain preventive measures outlined below can help to address the problem more effectively.
Secure your rights:
Although well-known marks have statutory protection, it is always advisable to have the mark registered with the Indian Trade Marks Registry taking into account your current and future business plans, thus ensuring as wide coverage as possible.
Alert and well-informed brand protection cell:
The anti-counterfeiting cell should be well equipped and well informed. Setting up reporting lines is vital. People, whether internal or external resources, who are on look out for counterfeits should know what to do when they find them. Once information on counterfeit operation is generated decision making should be quicker.
Invest in investigations:
Reliable and timely information is key to effective enforcement. The role of investigating agency in identifying production and storage sites where counterfeit material can be found and seized during ‘raid’ action is vital for effective enforcement.
Stringent and watertight agreements:
A sound agreement between the local distributors, manufacturers, joint venture partners and the IP holders minimizes the risk of counterfeiting.
Timely actions:
Usually, in cases where small time manufacturers are engaged in offence, the right owners are reluctant to take action assuming that their production volumes would not have any major impact on their sales. However, it is important to take early and timely steps to curtail counterfeiting at an early stage in order to protect the brand and also to restrain any small players becoming organized.
As in any other developing county, working with law enforcement authorities and courts is quite challenging in India. However so long as IP holders have worked out their objectives and strategy which suits their requirement, then achieving good results is not a difficult task.
Conclusion:
The registration of a trademark is optional i.e. not compulsory under the Trademarks Act, 1999. However, it is always advisable for various benefits attached to its registration. The registration of the trademark shall confer on the proprietor an exclusive right to use the trademark. The registration of a trademark is the prima facie evidence of its validity. The registration confers upon the proprietor a right to institute infringement proceedings against any adverse user, if any. This shows that registration of the trademark is important because it’s very easy to institute infringement proceedings in the court and establish the exclusive right in the trademark rather than passing off proceedings in which injunction is the remedy which is very difficult to prove in court of law.
0.000000
0.000000