Trademark Licensing in India
When a trademark is authorised, the individual rights of the brand above lie with the trademark owner. However, some chosen rights are given resolute a third party. Such a transfer of the license is ruled by the Trade Marks Act of 1999. It's imperative to notice that the term ‘licensing’ isn't used anyplace within the Act. However, the quality provisions of the Act that govern trademark in India confer with conditions related to ‘registered users’.
Procedure for Licensing a Trademark
The contract should be registered with the Registrar. The appliance for the license above agreement should be created as calculated within six months from the date of such associate degree agreement.
The user/licensee should fill out the kind TM-28 and undergo the registration register. The shape has to be submitted together with the subsequent declarations:
1. The agreement or a replica of it as entered into by the authorised businessman and therefore the planned businessman for the utilisation of the trademark;
2. Associate degree official document created by the registered user lists down the main points of the link they will be going in with the planned user. It should mention the degree of management as exercised by the intended user, any conditions or restrictions as designed with relevancy the characteristics of the products and services, therefore, entailed within the dealing, the fundamental measure of the agreement, etc.;
3. A power of attorney that's punctually signed in favour of agents, if there are any
There are also similar documents that the registrar could raise for any purpose throughout the procedure. Once the registrar is glad about everything that has been submitted, the previous offer the inexperienced signal to the registered user concerning the products and services that he deems match.
The register can have the date on that the appliance for the registration of the registered user was created. This date therefore registered, will be the enforceable date for the third party. Within two months of enrollment, the record will be revealed in the Trade Mark Journal. It's to be noted that the Registrar is indebted to send word alternative registered users of the involved trademark. However, the applicant will request the registrar not disclose details of constant to rivals within the trade.
It is imperative to notice that a trademark is also authorised for a few or all products and services lined. In case of a procurement of the registered trademark, the license gets terminated automatically. However, underneath the provision above, there's an opportunity for notice and conjointly a hearing before the commission is completed.
Cancellation or Variation as Registered User
Under Section 50, the conditions of variation and cancellation are mentioned. This deals with the registered user's usage of the registered trademark in an approach that's not by the terms of the agreement, or say the user hid some details involving the registration. Alternative reasons perhaps that the circumstances have modified since the roll, or if there's a lapse within the agreement concerning the standard of the goods therefore implemented. Even in such conditions, an opportunity for notice and hearing is granted before a judgment on cancellation or violation is taken.
Rights of Registered User
1. They will begin the method for infringement in their name. They'll call upon the registered businessman in matters regarding violation of the trademark in question
2. A registered user/licensee doesn't hold the rights to assign or any transmission as regards the trademark
The unregistered user cannot move any case of infringement. As a matter of advice, it's best if the licensee cites the proprietor of the concerned trademark as a co-defendant in the case. Note that the businessman will not influence the costs of the procedure till they are actively involved and seems in the proceedings.
Trademark Licensing authorises the use of a trademark given to a third party. Typically, such authorisation is completed during ‘cross-selling’ campaigns or against royalty payment in a franchise agreement.
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