Trademarks in India (Part 1)

By Ghanavi Umesh

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According to the Trademarks Act of 1999, a trademark is any mark or symbol capable of being represented graphically and capable of distinguishing the goods and services of one person or organization from the goods and services of those of others and may include shape of goods, their packaging and colour combination. One can easily spot a trademark if any brand name or logo has TM or an encircled R in superscript (TM or ®). The former stands for an unregistered trademark, while the latter stands for a registered one. However, it is to be noted that trademarks need not necessarily have either of these symbols in superscript.

Trademark law finds its origins in English common law. It was a well-established principle that no one could unlawfully acquire another’s property. Similarly, it was derived from this principle that no one must be allowed to appropriate another’s goodwill. English courts went on to uphold this principle in several cases. The British Trade Marks Act was first enacted in 1875 and was substituted by newer laws thrice later. India’s first law on the Trade Marks Act was enacted in 1940 modelled after The British act of 1938, which provided for registration and protection from infringement of trademarks. The current operative law in India is the Trade Marks Act 1999.

This act allows for trademarks in both goods and services. There are 34 classes of goods and 7 classes of services. There is also the provision of collective marks which is given to associations distinguishing the goods and services of its members and certification marks given to persons or firms competent to certify good or services about their origin, quality, etc. The difference between all the above categories can be understood better with examples. Trademarks like Amul, Mercedes Benz and Whirlpool are applicable to goods. Trademarks like those of Facebook, Air India come under services. Associations like the Lions Club or ICSI have collective marks and ISI or BIS are certification marks.

A trademark in India has to be capable of graphical representation – this includes the logo, a symbol, the colour combination of the product, and the packaging or the shape of the goods themselves – anything which sets the product or service apart from other goods or services of a similar kind. In some countries other trademarks such as sounds (like ad jingles) and fragrances can also be registered as trademarks. In India, the ownership of a trademark is on a first-to-use basis unlike patents which have a first-to-file basis. This means that unregistered trademarks are entitled to legal protection as well.

Possessing a trademark gives its owner a monopoly right over that name or symbol. Only the owner has an exclusive right of using the trademark or can authorize another person or firm to use the trademark. If a person or an organization uses another’s trademark without authorization by the owner, it results in a trademark infringement. However, infringing on a trademark is not limited to this. A trademark right is infringed upon when it is used in a similar good but in a different class as the trademark has been registered. Further, for a trademark infringement, the person appropriating the mark need not use the exact mark of the well-known brand. For example, if a person starts selling beverages or mineral water under the name Pedsi styled in the same way as the Pepsi logo, it will amount to a trademark infringement. Even though Pepsi does not sell mineral water under that name, it still counts as an infringement since water and beverages are similar goods.

Using a trademark unlawfully for a dissimilar good or service amounts to a dilution of the trademark and hence results in an infringement. This is because such an act might lead to confusion regarding the original brand among the consumers. Using a trademark in the packaging material or advertisement without authorization is also unlawful.

An important feature of trademark law in India is that it prevents persons from using the trademarks of foreign origin even if such a trademark is not in use in India. A mere exposure of the consumers in India to such trademarks through advertisements or other media is enough to prevent such usage. This is to prevent firms from appropriating the goodwill of such foreign firms and deceive the consumers in India. For instance, if a person starts selling ice-cream under the name of Ben & Jerry’s which doesn’t sell its products in India at present but is nevertheless known to people due to its popularity can be held liable for trademark infringement. Further, a trademark need not be registered to attract an infringement. An unregistered trademark which is well-known is still protected under the law against unauthorised use by other parties.  

A person who has committed the infringement of a trademark is liable to be imprisoned for a period of at least six months and not more than 3 years along with a fine of at least fifty thousand rupees to a maximum of two lakh rupees. However, if a person shows that he or she took all measure to ensure that the trademark was not infringed or his or her act was an honest mistake, then such person can be absolved from punishment. Further, if any person wrongly represents an unregistered trademark as registered, then he or she can be imprisoned for a period of up to 3 years, or be fined or both. Filing a civil suit along with a criminal one for trademark infringement ensures that the offender does not sell the counterfeit good when the matter is sub judice and allows for claiming compensation for the same.

 

Part 2 of this article will explain the procedural and practical aspects of Trademark law in India.

 

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Ghanavi Umesh is a 2nd year student at National Law University Delhi. She has a keen interest in Constitutional law, Environmental law and Intellectual Property law. She is also interested in Economics and Philosophy. One can either find her reading something or bingeing on a TV show in her leisure time. She also loves painting occasionally.

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