What Happens When your Trademark gets Cancelled

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A trademark protection is an important step in protecting a brand's identity. Though it can be a complex and time-consuming process, the value of trademark protection cannot be undermined. A registered trademark is a valuable asset that helps businesses distinguish their goods or services from those of others. However, trademark proprietors may face the possibility of their trademark being cancelled under certain circumstances. In this article, we will discuss the concept of trademark cancellation, the process of trademark cancellation, and its implications. 

What is Trademark Cancellation?

Trademark cancellation is the process of removing a registered trademark from the official trademark register. A trademark cancellation effectively discontinues the legal protections and exclusive rights associated with that registered trademark, that means when a trademark is cancelled, it means that the exclusive rights associated with that mark are revoked, and the owner can no longer prevent others from using a similar or identical mark in the market.  

The cancellation of a trademark can occur due to a variety of reasons, such as the mark not being used or legal disputes with other parties. That is why understanding the cancellation process and its implications are important for businesses that seeks to protect their brand identity and maintain their competitive edge in the market.

Who can file for Trademark Cancellation?

  • Aggrieved Parties:- Any aggrieved party by the trademark registration can initiate the cancellation process. This could be another entity or competitor who believes the trademark infringes on their rights or a consumer who feels the trademark is misleading.

  • The Trademark Registrar:- The Registrar has the authority to cancel a trademark registration on their own motion, if the trademark relating to any goods or services is no longer registered, i.e. the proprietor has not applied for renewal of the trademark.

  • The Registered Proprietor:- The registered proprietor of a trademark may also apply for the cancellation of their own trademark from the official register.

  • Interested Parties:- Any person who has a legitimate interest in an existing registered trademark may apply for its cancellation. However, it is important to note that such applications must be filed only on the grounds prescribed under the Trademarks Act.

Grounds for Trademark Cancellation 

  • A trademark may be subject to cancellation if it has not been used for a continuous period of five years or more.

  • If the mark was registered without any bona fide intention or good faith. This could include cases where the trademark was obtained through fraud, misrepresentation. Trademarks obtained through fraudulent means or false ownership claims are eligible for cancellation.

  • If the trademark was registered in violation of any provisions of the Trademarks Act, such as being deceptively similar to an existing mark, it may be cancelled.

  • If a trademark is similar or identical to an existing well-known trademark, it may be cancelled.

  • Marks that are deemed contrary to public interest, including those considered scandalous or obscene, may be subject to cancellation.

  • Third parties may initiate cancellation proceedings, alleging that the trademark is generic, descriptive, or has become abandoned or non-distinctive over time.

  • Failure to renew the trademark may be subject to cancellation. 

Procedure of Cancellation of a Registered Trademark

The process of cancelling a registered trademark involves several steps and can be complex and time-consuming. 

  • An aggrieved person submits an application to the Appellate Board or the Registrar, detailing their reasons for requesting cancellation or changes to a trademark registration.

  • The tribunal (Appellate Board or Registrar) examines the application. They consider the grounds provided for cancellation or variation.

  • The tribunal then makes a decision, which may involve cancelling the trademark, varying its details, or rectifying the register. The tribunal can also start this process on its own, without an external application. In such cases, they must notify all concerned parties and give them a chance to respond.

  • The tribunal issues an order detailing the actions to be taken. If the Appellate Board makes the decision, they direct the Registrar to implement the necessary changes.

  • The Registrar then updates the register according to the order, and all parties are notified of the changes.

Effects of Trademark Cancellation

When a business loses exclusive rights to use its trademark, other businesses can start using similar or identical marks. Many businesses rely heavily on their trademark as part of their brand identity. If they lose their trademark, they might need to completely rebrand themselves. This process can be time-consuming, and to mention expensive as well. Without trademark protection, it becomes harder for a business to take legal action against others who use similar marks. This can lead to more competition and make it difficult for customers to distinguish between different brands. Trademark cancellation can disrupt licensing deals, franchise arrangements, and other business contracts relying on the trademark.

Businesses can use some of the following measures to prevent the cancellation of their registered trademarks:-

  • Consistent and regular use of the trademark in business operations is essential to prevent it from being cancelled due to inactivity.

  • Trademark registrations require periodic renewal to maintain their validity and protection. Failing to renew your trademark can result in it becoming vulnerable to cancellation or loss of exclusivity.

  • Businesses should vigilantly monitor the day-to-day trends and market for any unauthorized use of their trademark or similar marks that could infringe on their exclusive rights. Promptly addressing any trademark infringement is important to protect the distinctiveness and value of the trademark. Consult with a trademark attorney to ensure compliance with all relevant laws and regulations pertaining to trademark cancellation.

Securing trademark protection is a complex and time-consuming process, and trademark cancellation can be a damaging process especially if initiated by third parties or the Trademark Registry itself. That is why understanding the grounds of trademark cancellation, procedures, and its implications can help businesses better protect their valuable trademark. 

At Compliance Calendar LLP, our approach is to help startup founders in protecting their brand name/logo/design and ease the trademark cancellation process end-to-end for them. Whether you are initiating a trademark cancellation or defending against one, our experienced team is here to guide you. For those seeking to cancel another’s trademark, we help evaluate grounds, prepare legal documents, gather evidence, and represent you in proceedings. 

Frequently Asked Questions

  • What is trademark cancellation?

Trademark cancellation is the process of removing a registered trademark from the official trademark register. When a trademark is cancelled, the legal protections and exclusive rights associated with that registered trademark are discontinued. This means the owner can no longer prevent others from using a similar or identical mark in the market.

  • Who can file for trademark cancellation? 

Several parties can initiate the trademark cancellation process such as any aggrieved party who believe the trademark infringes on their rights, or consumers who feel the trademark is misleading. The Trademark Registrar on his own motion, if the trademark is no longer registered due to non-renewal. The owner of the trademark can apply for cancellation of their own mark. And anyone with a legitimate interest in an existing registered trademark, but only on grounds prescribed under the Trademarks Act.

  • What are the main grounds for trademark cancellation?

Some of the common grounds for trademark cancellation could be non-use of a trademark for a continuous period of five years or more, fraudulent registration or false ownership claims, a mark which is similar to an existing well-known trademark, or marks deemed contrary to public interest (e.g., scandalous or obscene).

  • Can a cancelled trademark be restored?

Yes, a cancelled trademark in India can be restored if it was cancelled due to non-renewal or non-compliance with the trademark renewal process. Trademark renewal can be filed either one year or six months before the expiry date, or even up to six months after the expiry date (grace period), with certain conditions and fees applicable in each case. 

  • Can a trademark be partially cancelled?

Yes, a trademark can be partially cancelled. Partial cancellation removes some of the goods or services covered by a trademark registration, but leaves the others protected. 

  • How long does the trademark cancellation process take?

The process of voluntarily cancelling a trademark can take 4 to 6 months. The duration anyway would likely depend on factors such as the grounds for cancellation, and the complexity of the case.

  • How can Compliance Calendar LLP help with trademark cancellation matters?

At Compliance Calendar LLP, our approach is to help startup founders in protecting their brand name/logo/design and ease the trademark cancellation process end-to-end for them. Whether you are initiating a trademark cancellation or defending against one, our experienced team is here to guide you. For those seeking to cancel another’s trademark, we help evaluate grounds, prepare legal documents, gather evidence, and represent you in proceedings. If your trademark is under threat of cancellation, we assess the claim’s validity, collect evidence of your trademark use, and represent you. Our goal is to protect your intellectual property rights and achieve the best possible outcome for your business. For expert assistance with trademark cancellation matters, contact us at info@ccoffice.in or WhatsApp/Call at 9988424211.

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