Trademark Licensing in India
When a trademark is authorized, the particular rights of the aforesaid trademark lie with the owner of the trademark, however, some choose 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 provisions that are related to ‘registered users’.
Procedure for Licensing a Trademark
The contract should be registered with the Registrar. The appliance for the aforesaid license agreement should be created as calculated within six months from the date of such associate degree agreement.
For the registration purpose, the user/licensee should fill kind TM-28 and undergo the registrar. The shape has to be submitted together with the subsequent declarations:
1. The agreement or a replica of it as entered into by the authorized businessman and therefore the planned businessman for the utilization of the trademark;
2. Associate degree official document created by the registered user that lists down the main points of the link he/she are going to be going in with the planned user. It should mention the degree of management as exercised by the planned user, any conditions or restrictions as planned 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 favor of agents, if there are any
There is 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 with respect to the products and services that he deems match.
The register can have the date on that the appliance for the registration of registered user was created. This date therefore registered are going to be the enforceable date for the third party. Within 2 months of registration, the record is going to 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. The applicant will, however, request the registrar to not disclose details of constant to rivals within the trade.
It is imperative to notice that a trademark is also authorized for a few or all product and services lined. Just in case of a procurement of the registered trademark, then the license gets terminated automatically. However, underneath the aforesaid provision, there's an opportunity for a notice and conjointly a hearing before the license is terminated.
Cancellation or Variation as Registered User
Under Section 50, the conditions of variation and cancellation are mentioned. This deals with the usage of the registered trademark by the registered user in an approach that's not in accordance with 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 registration, 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. He/she will begin the method for infringement in his/her own name. They'll call upon the registered businessman in matters regarding infringement of the trademark in question
2. A registered user/licensee doesn't hold the rights to assign or any transmission as regards to 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 he/she is actively involved and seems in the proceedings.
Trademark Licensing is the authorizing of use of a trademark given to a third party. Typically, such an authorization is completed during ‘cross-selling’ campaigns or against payment of royalty in a franchise agreement.
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