Trademarks are very important intangible assets because they describe the origin of goods or services. Thus, trademarks prevent others from using the same and aid building up a reputation of the mark owner. There are times when trademark owners want to withdraw their marks. The process is serious from a legal point of view as well as business perspective. The following article discusses statutory provisions and landmark judgments on trademark withdrawal in India along with factual situations for better understanding.
Trademark law in India Legal framework
The main act related to trademarks in India is the Trademarks Act, 1999. It deals with the Trademark Registration, protection, and implementation of trademarks in India and considers procedures for Trademark Opposition, rectification, and withdrawal.
Reasons to Withdraw Trademarks
Trademark withdrawal may be for various causes:
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It occurs when the owner of the trademark simply relinquishes using the mark because of a change of business lines or even rebranding among other reasons.
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Non-Use: A mark can be registered under Section 47 of the Trademarks Act, 1999 if the mark has not been used continuously for five years.
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The trademarks may be cancelled based on grounds of passage through the successful opposition or petition for cancellation based on grounds of resemblance with other trademarks, lacking in distinctiveness, or deceptively similar.
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All these cases are resolved through a kind of settlement agreement in which one party withdraws its trademark.
Procedure of Trademark Withdrawal
The process through which a trademark in India can be withdrawn is:
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Application for Cancellation: The owner of the trademark shall apply in writing to the Registrar of Trademarks for the cancellation of his trademark. The latter, by way of course, shall make use of Form TM-P.
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Publication and Objection: Where a Registrar receives the application of withdrawal, he shall thereupon publish the notice of withdrawal in the Trademarks Journal and also shall afford an opportunity for an interested party to put forward objection within that prescribed period.
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Registrar's Order If no objection is raised or if the objections raised fail, the registrar shall register the withdrawal and shall indicate the same on the register.
Landmark Judgement on Trademark Withdrawal
Several judicial pronouncements have shaped the legal landscape of trademark withdrawal in India. Here are a few notable cases:
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Corn Products Refining Co. v. Shangrila Food Products Ltd. (1960 AIR 142): The apex court held that the supremacy of distinctiveness has been highlighted in trademarks. In case of non-distinctive marks, there has been a possibility of subsequent cancellations and withdrawals in such cases.
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Milmet Oftho Industries v. Allergan Inc. (2004 12 SCC 624): It established the "first-to-market" principle, emphasizing the importance of prior use in acquiring trademark rights. The case also recognized the concept of trans-border reputation while balancing global and local interests.
Impact of Trademark Withdrawal
The withdrawal of a trademark may have various effects:
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One of the most direct and obvious losses here would be that of the trademark's exclusive rights. This effect, of course, touches both the legal position of the brand as well as the market.
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Rebranding Costs: They also carry a heavy cost of rebranding with packaging, marketing, and promotional campaigns.
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Market Confusion: Abandonment of a registered trademark would often lead to market confusion since there are competing firms that would like to grab the abandoned trademark.
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Legal Effect: The owner of the trademark is liable under the law. Litigation will lead to the withdrawal of trademarks and there can emerge damages and injunctions.
Conclusion
In reality, the withdrawal of trademarks is a highly involved process, governed by the Trademarks Act of 1999 and judicial interpretations. Although an owner may contemplate the necessity of withdrawing trademarks and their implications both legally and commercially, for such purposes, it becomes essential to stay updated on relevant statutes, case laws, and procedural requirements.
This will help businesses with the strategic decision-making process but it will also offer a more solid and fair trademark regime in India. Whether or not the procedure of deleting a trademark appears in a manner of abandonment or against law, the whole exercise calls for meticulous attention on details as well as due compliance with the statutory regime.
Frequently Asked Questions
Q1. What are the grounds for cancellation of a trademark in India?
Ans. The trademark can be deleted for the following reasons:
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Non-use: Cancellation of trademark, if the trademark-related activities have not been conducted in five consecutive years.
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Change in Business Direction: A business firm may choose to rebrand or change the type of goods offered, thereby rendering the current trademark meaningless.
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Legal Problems: A trademark can be revoked for infringement under trademark infringement litigation or opposition action.
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Strategic Choice: A company can withdraw its trademark when it avoids legal issues in the future or focuses on other brands.
Ans. The trademark owner shall make a written application to the Registrar of Trademarks. Then, the Registrar shall advertise notice in the Trademarks Journal and shall invite objections from interested parties. If no objections arise, the Registrar shall register the withdrawal.
Q3. What are the consequences of revocation of a trademark?
Ans. Withdrawing a trademark can have several implications:
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Exclusivity is Lost: The trademark owner loses the exclusive rights over the trademark.
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Market Confusion: Other companies may seek to register similar trademarks, hence likely to cause confusion among the consumers.
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Rebranding Cost: The cost of new packaging, marketing materials and campaigns is rather high in a new advertising context.
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Legal Liability: Sometimes withdrawing a trademark may come with legal liabilities as well as damages or injunction.
Ans. So, in essence, a withdrawn trademark shall not be revived. However, in specific circumstances or situations the revival might be allowed by either a court or the Registrar of Trademarks. Such circumstances may involve fraud or mistake among others.
Q5. How do I protect my trademark rights in India?
Ans. In India, for protection of rights as a trademark, you would
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Registration: Registration may assure you of legal protection. In case of infringement, you can take legal action.
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Monitor trademark usage: This would track how the trademark was used in the market and would help identify infringements.
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In case you find infringement of your trademarks, you must seek remedial measures with an attorney.
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Continuity Use: Make use of your registered mark to prevent that mark from becoming abandoned through non-use.