Category: Trademark Act 1999

  • Ethical Considerations in Trademark Law: Why Playing Fair Matters

    Introduction

    In this age of competition, the name, logo, and identity of a brand are everything. Brands are recognized by their names and logos, so that is part of the reason people trust them. But what if somebody unjustly replicates a well-known brand’s emblem or title?

    This is where the ethical aspects of trademark law come in.There’s more to trademark law — registering logos or slogans — than just trademark law; it’s also about doing the right thing.

    Being ethical means that you play fair, that you respect other people’s work, and that you do not mislead customers.

    Let’s break this down to understand what it means in layman’s terms.

    What is a Trademark?

    A trademark can be a sign, symbol, word, or logo that helps people identify your business or product.

    For example Nike Swoosh, the McDonald’s golden arches or the Apple logo have become so synonymous with the companies that you can tell immediately who owns them.

    Trademarks provide confidence to consumers that they know what they are purchasing.

    This is why it’s so important that trademarks are used fairly and ethically.

    What Are Ethical Considerations in Trademark Law?

    Ethics in trademark law is about ensuring that:

    • You don’t replicate someone else’s brand.
    • You can make a ton of products under one logo or product line without confusing the customer into thinking they are all alike.
    • You are sensitive towards cultural and religious sentiments.
    • You don’t use trademarks in a way that damages the business or reputation of others.

    It’s about being honest and fair with your making and using your brand.

    Why Are Ethics Important in Trademark Law?

    The ethics in trademark law matter because:

    1. Protects Honest Businesses: If anyone was allowed to copy brands freely, this would harm original creators. Ethics safeguard people who work tirelessly to create their brands.
    2. Prevents Customer Confusion: Consider if you bought a sneaker designed to look like a Nike shoe, and when you bought it realized it was not the real thing — you would feel ripped off. We have ethics that guard against that kind of confusion.
    3. Encourages Creativity: Ethics, on the other hand encourage businesses to forge their own unique identities rather than imitating.
    4. Respects Society and Culture: Trademarks cannot offend public sentiments or tarnish religious symbols.
    5. Builds Long-Term Trust: In fact, ethical branding creates cult-like consumers who will trust you for years to come.

    Best Practices and Alternatives: A Case for Ethics

    Let’s understand this with simple examples:

    Ethical Practice

    • Creating a Unique Logo: Rather than copying, you come up with yourown new logo.
    • Choosing An Original Brand Name: You do not use names that are similar to known brand names.
    • Respecting National Symbols: You are not disrespecting a national flag or a religious symbol in your brand.

    Unethical Practice

    • Copying a Famous Logo: Creating a logo that was close to Nike’s Swoosh and deceiving customers.
    • Using Confusing Brand Names: We’re talking about Naming your company ”Adibas” to get people to think its Adidas.
    • Disrespecting religious Values: Using sacred images or holy slogans just to gather attention without understanding their meaning.

    Ethical Guidelines under Indian Trademark Law

    There are also some ethical rules enshrined within the Trade Marks Act, 1999 in Indian law:

    • The examiners also accept that you cannot register a trademark that offends religious sentiments.
    • You cannot register anything that is immoral or against public order.
    • You cannot trademark something too alike an existing brand.

    It safeguards that trademarks are not misleading, fair, and honest.

    How Young Entrepreneurs Can Be Ethical

    If you are a young entrepreneur launching a brand, this is what you can do to remain ethical:

    • Research Before You Create: Ensure your logo or name isn’t too similar to another person’s.
    • Respect Culture and Religion: Be sensitive in how you use names, images or slogans.
    • Be Original: All of your idea’s have more impact than ones you have taken from someone else.
    • Register Your Trademark: Legally protect your creativity so that no one else can abuse it.

    It is good for all of us, and ultimately, it is good for your brand success too!

    Ethics and Global Trademark Practices

    There is a lot of emphasis on ethical trademark practices even at the international level (WIPO – World Intellectual Property Organization):

    • Equal fairness is expected from global companies.
    • Trademarks that deceive, confuse or are harmful to public interests are prohibited.
    • No matter, whether you’re a small business owner in India or a big startup dreaming international, ethics matter everywhere.

    Conclusion: Ethics = Stronger Brands

    It is not about who files first

    It’s about who plays fair.

    Ethical considerations ensure that:

    • Good businesses thrive.
    • Customers are happy.
    • Innovation continues.

    Young innovation entrepreneurs need to remember that success without values is temporary.

    But success in the realm of ethics, engenders trust, loyalty and respect — the cornerstones of any great brand.

    Thus, create your brand with creativity, guard it with trademark law and reinforce it with ethics.

    Because, after all, playing fair is the smartest business strategy!

    “Create Uniquely. Protect Legally. Grow Ethically.”

    Author Details: Aditya Krishna Gupta, 3rd year, BA LL.B. ,Jiwaji University, Gwalior 

    Reference Links:

    https://www.wipo.int/trademarks/en

    https://www.businesstoday.in/latest/corporate/story/patanjali-trademark-disputes-brand-name-legal-row-255678-2021-06-15

  • Section 8 Company Closure and Workforce Management

    Introduction

    A Section 8 Company is a company which is established for charitable purposes. Section 8 Company is basically a Non-Profit Organisation which is registered under the provisions of the Companies Act. Establishing and running a Section 8 Company is a tedious task requiring various workforce management compliances like notice period rules for employee, employee termination policy in India etc. Apart from this, Section 8 Companies are regularly encountered with several other operational challenges including lack of funding, absence of resources etc., due to which, Section 8 Companies may find it difficult to stay afloat and seek closure.

    Hence, this article provides a comprehensive overview of the legality and procedure involved in Section 8 Company closure and effective workforce management.

    Legal and Compliance Requirements for Employee Termination in a Section 8 Company

    The employee termination policy in India during the closure of a Section 8 company must be managed with strict adherence to labor laws and statutory obligations. This ensures that employees are treated fairly, their rights are protected, and the organization fulfills its legal responsibilities. Adhering to employment laws, along with transparent communication with employees, is essential to avoid disputes during the process.

    Adherence to Employment and Labor Laws

    • Labor Laws: Comply with relevant labor laws such as the Industrial Disputes Act, 1947, and the Payment of Gratuity Act, 1972, which outline the procedures for employee termination policy in India.
    • Employment Law Compliance: Ensure that all statutory dues, including unpaid salaries, gratuity, provident fund (EPF), and Employee State Insurance (ESI) contributions, are settled before termination.
    • Statutory Compliance: Verify that the employee termination policy in india aligns with the company’s employment contracts, HR policies, and applicable labor laws.
    • Audit for Compliance: Conduct a thorough audit to ensure that all legal obligations are fulfilled.
    • Government Regulations: File the necessary reports with labor authorities or government departments as required by law.

    Notice period rules for an employee

    1. Notice Period:
      Provide employees with the required notice period as per their employment contracts or labor laws. If immediate termination is necessary, offer compensation in lieu of the notice period as per notice period rules for employee.

    2. Termination Notice:
      As per the termination policy in India the company has to issue formal termination letters detailing the reasons for termination, the effective date, and any compensation offered. Include information about severance pay and other entitlements to ensure clarity.

    3. Employee Communication:
      Maintain transparency by clearly explaining the reasons for termination and the organization’s closure. Offer employees an opportunity to discuss their concerns and provide a platform for addressing grievances.

    4. Formal Notification:
      Communicate the termination decision in writing to ensure there is a formal record of the process. Notify relevant stakeholders, including labor unions or employee representatives, if applicable.

    5. Company Closure Procedure Announcement:
       Ensure that employees are informed about the company closure procedure in a timely and empathetic manner. Share details about the steps being taken to comply with legal requirements and support employees during the transition.

    Understanding Company Closure procedure of Section 8 company

    Company closure procedure of section 8 company is a highly technical process that begins with:

    1. Calling a general meeting is the first stage in closing a Section 8 company. To particularly address the issue of winding up the section 8 company, the board of directors of the company must take the initiative to summon a special general meeting (SGM) of the members.
    2. The court or the company’s members may designate a suitable person to act as a liquidator, charged with managing the winding up procedure.
    3. Call an EGM and adopt a special resolution (SR) if shareholders approve of the decision. The closure process can then start.Within 30 days of passing the SR in the EGM, submit MGT-14 together with all applicable documents, DSC, and costs
    4. The regional director (RD) must then receive the completed INC-18, the required documentation, and the conversion fees.

    Documents Required for the section 8  company closure process

    Following is the required list of documents:

    • A copy of the meeting notice, which includes the explanatory statement, the Association memorandum, the articles of incorporation, and a certified copy of the special resolution
    • The board resolution or resolutions that approved the conversion in a certified copy
    • A certified true copy of the notification calling the general meeting, the relevant explanatory statement attached to it, and the special resolution passed for approval of any other type of conversion
    • A CS, CWA, or CA’s (in practice) certificate attesting to compliance with the Act’s and the rules’ requirements. A statement, properly attested by the auditor, showing the company’s assets and liabilities as of a given date within thirty days of that date
    • A copy of an asset market value report from a registered value
    • For each of the two fiscal years that immediately preceded the application date, or for that year if the company had only been in operation for one fiscal year, financial statements, board of directors reports, annual returns, and audit reports
    • Each of the creditors, if any, must provide a letter of authorization.
    • All of the Regional Director’s requirements were stated in a statement from the directors.

    Conclusion

    The closure of a section 8 company in India involves a structural legal process that ensures transparency and compliance with regulatory frameworks. understanding the procedural steps and documentation required for company closure is crucial, especially in the not for profit sector. Equally important is adherence to employee termination policy in India, which must align with Indian labor laws to ensure fair treatment of staff during winding up , proper implementation of notice period rules not only safeguards employee rights but also helps maintain the company’s integrity  during its final stages. By carefully following the legal procedures and obligations, a section 8 company can conclude its operations responsibly and lawfully

  • INTELLECTUAL PROPERTIES: IN MY DREAM HOUSE

    It’s a story of a dream home (sapano ka ghar). Although this story or the seed of this dream started from my childhood. I have been raised in a family of eight people: my mom dad and 5 siblings. We all used to live in an apartment in Deeg, a small city near Agra. Moreover, we will dive in the knowledge of this topic intellectual properties in my dream house.

    In the apartment we all used to live only has two rooms, one kitchen and one bathroom. One room is mainly used as a hall for the purpose of welcoming guests into the house. That leaves us with only one room where our whole family used to live. One of my siblings was very small; he used to sleep with Mom and Dad, and the other four siblings used to live with me in the same room where we all used to play, fight, study and do everything.

    At that moment, it’s my dream and mission to build The House of My Dream. Now after these years of wait me and my best friend has finally found The Place in our dream neighbourhood that is two big plots side by side, makes it so much easier to visit each other whenever we want.

    Soon after looking into the property, we managed to buy the plots with all the legal paperwork done by my lawyer who is also my best friend with whom I have purchased the property.

    1. THE COPYRIGHT ACT, 1957:

    As we embarked on the journey of designing our dream home, one of the most exciting yet overwhelming tasks was the blueprint of the house and also the elevation design for that, we worked closely with our architect to develop a custom blueprint and elevation, designed entirely to our vision something that reflects our personal taste.

    This blueprint, which includes the floor plan, room layout, and along with the elevation, is a result of creative and technical planning. As such, it qualifies as an “artistic work” under Section 2(c) of the Copyright Act, 1957.

    According to Indian copyright law, the moment an original work like this is created the architect or client gains automatic copyright protection. So, any unauthorised use by someone else other than the original owner would amount to copyright infringement.

    2. THE TRADEMARK ACT, 1999:

    As part of our interior planning process, we visited several tile showrooms across the city. To our surprise, we were overwhelmed by the vast range of options available in tiles differing not just in colours and patterns, but also in shape and material. Each brand showcased something unique. While some tiles were known for their strength and durability, others, though visually appearing stronger and beautiful, were relatively fragile and less reliable in terms of long-term quality.

    After comparing various samples and considering both aesthetics and durability, we decided to go with tiles manufactured by the renowned brand ‘Kajaria’. Kajaria has built a strong reputation over the years for producing high-quality, long-lasting tiles, and their tagline “The quality speaks for itself” truly aligns with our experience.

    In the process, we also came across other reputed companies like Somany Ceramics and Johnson Tiles, each of them has established a strong brand identity. A common feature among these top brands is that their logos are printed on the reverse side of every tile, and also prominently displayed on the packaging. This branding serves as a mark of authenticity and trust.

    From an Intellectual Property Rights perspective, this is a clear example of protection under the Trademarks Act, 1999. The name, logo, tagline, and even specific branding elements used by these companies are all protected trademarks. These trademarks not only help distinguish one company’s products from another’s in a competitive market but also play a vital role in maintaining the goodwill and reputation the company has earned among consumers.

    Moreover, trademarks are essential in preventing duplicating and misuse of a well-established brand. If a local manufacturer attempts to falsely use the name or similar logo of Kajaria, for instance, it will amount to trademark infringement and the legal protections under the Trademarks Act would allow Kajaria to take action to protect its brand.

    Thus, our choice of tiles was not just based on looks or price, but also on the credibility that the brand carrieswith itself, assuring us that we are investing in a product that is trusted, original, and protected under Indian IPR laws.

    After finalizing the customized blueprint and elevation of our house protected under copyright and selecting high-quality, trademarked tiles from a trusted brand like Kajaria, we moved to another vital part of the home-building journey: choosing the right fans and lighting. In terms of durability for long-term use, energy efficiency to reduce electricity bills, and of course a design that elevates the aesthetic vibe of every room.

    We explored fans and lights from several companies, but our attention was drawn to Havells, a name known for its quality, innovation, and customer satisfaction. From ceiling fans to smart LED panel lights and decorative chandeliers, every product reflected the premium quality.

    The brand name “Havells”, along with its logo, taglines, and different branding style, is protected under the Trademarks Act, 1999. This Act ensure that no other company can use the Havells brand name or similar trademarks to mislead customers, So the company’s reputation and goodwill remain legally intact. And, the consumers like us can confidently choose products, knowing they are backed by a protected brand.

    In taps and showerheads, we specifically chose fittings from Jaquar®, a brand known not just for its appearance, but for durability, water-saving technology, and customer service. The brand name and logo printed on every product, packaging box, and even on the handles themselves, is not just a mark of identity, it is a registered trademark protected under the Trademarks Act, 1999. The Act ensures protection of the name, logo, and tagline of the brand. The brand’s reputation, consumer trust, and goodwill remain protected.

    3. THE DESIGNS ACT, 2000:

    Havells is also stood out for its design innovation like for instance the ceiling fans with wooden blade, LED lights in geometric patterns, & floral designs that blend beautifully into modern interiors. These external visual features are protected under the Designs Act, 2000 as Industrial Designs. The company has exclusive rights over these designs, ensures that no one can copy the unique physical appearance of its fans or lights.

    For taps and shower the external visual features the shape, configuration, and ornamentation are protected under the Designs Act, 2000 as Industrial Designs. As the taps have curved spouts, or black finishes, or vintage gold polish. This Design protection ensures that no competitor can copy the look of these taps or showers without permission. Consumers benefit from unique and elegant designs exclusive to that brand.

    4. THE PATENTS ACT, 1970:

    The company having BLDC technology in ceiling fans that ensure silent operation, to smart enabled fans and lights that can be operated via mobile apps or voice assistants or remote these products are often patented under the Patents Act, 1970. Some patented features include motion-sensor, fans with auto-regulation of speed based on room temperature, smart mood lighting systems that change colour based on time of day. Patents protect these functional innovations, granting exclusive rights to the company to use the invention themselves, also prevent others from copying the mechanism or feature.

    As we moved further into completing the finer details of our home, it was finally time to design the bathrooms spaces where comfort and hygiene go hand in hand. We explored products from renowned sanitaryware and looked into companies like Jaquar, Kohler, Hindware, and Grohe, and we were amazed at how much innovation goes into something as simple as a tap or showerhead. We are getting amazed by each passing day like knowing that these everyday products can carry the weight of Intellectual Property protection.

    The Modern tap and shower fittings has some features like auto-closing taps to prevent water wastage. Thermostatic mixers that balance hot and cold water perfectly. Touch-free that is sensor-based systems for hygiene. These features involve technical innovation, often protected under the Patents Act, 1970.

    This Act protects exclusive rights to the inventor and company to use the technology. Legal protection against others making, selling, or using the same invention without consent.

    5. THE GEOGRAPHICAL INDICATIONS OF GOODS ACT, 1999:

    After the structure was completed, tiles chosen, lights installed, and bathrooms made functional it was finally time to add soul to the space: the furniture, art, and cultural essence that truly turns a house into a home. For this final stage, we intentionally chose traditional, artworks and handicrafts, many of which are protected under the Geographical Indications of Goods (Registration and Protection) Act, 1999.

    Like for the main hall, we selected exquisite Mysore Traditional Paintings known for their rich colours, gold foil detailing, and mythological themes. Each painting are handmade by local artisans from Karnataka, reflected elegance and heritage. These paintings are protected by a GI tag, which confirms their origin from Mysore, Karnataka. Legally ensures that only genuine artisans from that region can label their art as “Mysore Painting”.

    And for our dining area and lounge, we chose Sankheda furniture from Gujarat beautifully built wooden chairs and tables with vibrant, hand-painted patterns and bold colours. Made using old techniques passed through generations, these pieces added traditional charm and vibrancy to our space.

    This furniture are protected under Geographical Indications, ensures the exclusive right of Sankheda artisans from the region of Gujarat to use the name.Legal protection against the mass manufacturers who are it is wrongly and falsely.

    Conclusion

    Building a home is not just about bricks it is about creativity, innovation, tradition, and that small personal touch of ours. Through every step of our journey from choosing branded tiles, to selecting GI-tagged artworks and customized blueprints we discovered how deeply Intellectual Property Rights are woven into the very fabric of our daily lives. This all about Intellectual properties in my dream house.

    This experience has not only given us a home filled with beauty and meaning but also a deeper appreciation for the laws that protect originality, craftsmanship, and innovation.

    Truly, understanding IPR has turned our dream home into a space where ideas are valued, and creators are respected.

    Author

    Nimisha Singh Kushwah, 3rd B.A.LLB, Institute of Law, Jiwaji University, Gwalior

  • ASPECTS ON INTELLECTUAL PROPERTY OR INDIRECT TAXATION

    It’s easy to understand what Intellectual Property Rights (IPR) and indirect taxation are.
    Indirect Taxation and Intellectual Property Rights (IPR) will be talked about today. These are both very important in the business and law worlds.

    Intellectual Property Rights (IPR) protect any new invention, idea or work. Protecting creative ideas is what Intellectual Property Rights (IPR) are all about. Whereas theIndirect Taxes are taxes that people don’t pay directly but are added to the prices of goods and services.

    INTELLECTUAL PROPERTY RIGHTS

    Meaning – People should own their own inventions, brands, designs, and creative material when they come up with them. The goal of intellectual property rights is to protect these kinds of ideas legally. If you didn’t have IPR, anyone could copy someone else’s idea without their help.

    Kinds of IPR (Intellectual Property Rights):

    1. Patents are for new ideas, like medicine formulas or technology.
    2. Copyright is for music, movies, books, art, and software.
    3. Trademark is for logos, company names, and slogans, like the swoosh logo for Nike or the name for Coca-Cola.
    4. Geographical Indications (GI) are used for goods that come from a certain place and region of the country, like Darjeeling Tea and Banarasi Saree.

    Patent

    It is a legal entitlement that offers protection for a new idea or technology. It is awarded only for fresh and creative ideas. A patent has validity of twenty years. Following this time, the creation becomes public domainand anyone may use it. Like Apple’s Face ID technology is patent protected hence no other firm may imitate it without authorisation. To guard their formulations, pharmaceutical companies get patents for new medications. Here, The Patents Act, 1970defines;

    Section 2(1)(m)“Patent” means a patent for any invention granted under this Act.

    Copyright

    It protects creative works including books, music, films, software, and artistic works. Owner of Creative Works. Original work creates automatically grants automaticallycopyright. It is still applicable the creator’s lifespan + 60 years.Like A writer’s book is covered under copyright, so stopping illegal duplication. Additionally copyrighted are films and songs, which stop piracy and unauthorised downloads. Here, the Copyright Act, 1957defines;

    Section 14“Copyright” means the exclusive right to do or authorize others to do certain acts in respect of a work.

    Trademark

    The Brand Identity Protection a trademark covers the name, logo, phrase, or distinctive brand identity of a corporation. It gives consumers’ trust between companies and them. A trademark valid for 10 years can be renewed endlessly. Like Registered trademarks are Nike’s swoosh logo and motto “Just Do It”. Additionally trademarked is McDonald’s “Golden Arches” (M) logo. Here, the Trade Marks Act, 1999defines;

    Section 2(1)(zb)“Trademark” means a mark capable of being represented graphically and distinguishing the goods or services of one person from those of others. It may include the shape of goods, packaging, and combination of colors.

    Geographic Indications (GI)

    Protection of Products Specific to a Region GI tags for products derived from a certain area guarantee that the product maintains its original character. It increases the value of locally produced goods including those of farmers and artists. Like From Darjeeling Tea from West Bengal to Banarasi Saree from Uttar Pradesh toMadhubaniPaintings from Bihar. Here, the Geographical Indications of Goods (Registration and Protection) Act, 1999defines;

    Section 2(1)(e)“Geographical Indication” means an indication which identifies such goods as agricultural, natural, or manufactured goods as originating or manufactured in the territory of a country or a region or locality in that territory, where a given quality, reputation, or other characteristic is essentially attributable to its geographical origin.

    IMPORTANCE OF IPR

    It makes sure that people who come up with new ideas have the right to protect them.

    • It keeps businesses and brands safe.
    • It stops unfair competition.
    • It helps the economy grow and study progress.

    INDIRECT TAXATION

    Meaning – An indirect tax is a tax that people don’t pay directly but is built into the price of a good or service. This means that when you buy something, the tax is already built into the price.

    Types of an indirect tax:

    1. The Goods and Services Tax (GST) is India’s largest indirect tax scheme. Multiple taxes are rolled into one.
    2. Customs Duty is a tax that is put on things that come from other countries.
    3. Excise Duty is a tax on certain things, like tobacco or alcohol.
    4. The Entertainment Tax is a tax on things like movies, music, and theme parks.
    5. The Stamp Duty imposed on property transactions and legal documents.

    Goods and Services Tax (GST) – A Unified Tax System

    GST is a comprehensive indirect tax that applies to both goods and services. Earlier, different taxes like VAT, Service Tax, and Excise Duty were levied separately, but now they have been merged into GST. The “One Nation, One Tax” model simplifies the taxation system. E.g. If you buy a mobile phone worth ₹1000 with 18% GST, the total cost will be ₹1180. Restaurants also charge GST on food bills. Here, the Central Goods and Services Tax Act, 2017 (CGST Act)defines;

    Section 2(52)“Goods and services tax” means any tax levied on the supply of goods, services or both except taxes on the supply of alcoholic liquor for human consumption.

    Customs Duty – Tax on Imports & Exports

    When a product is imported into India from a foreign country, a customs duty is imposed. The purpose is to protect local businesses and regulate international trade. E.g. iPhones imported from foreign countries have customs duties, making them more expensive in India. Luxury cars (like BMW, Audi) have high customs duties, encouraging local automobile industries to grow. Here, the Customs Act, 1962 defines;

    Section 2(15)“Customs duty” means the duty payable under the Customs Act on imported or exported goods.

    Excise Duty – Tax on Manufacturing

    Excise duty is a tax levied on products manufactured within India. Earlier, it was separate, but now it has been merged with GST. E.g. Cigarettes and alcohol have high excise duties to discourage excessive consumption. Excise duty is also imposed on petrol and diesel, generating revenue for the government. Here, the Central Excise Act, 1944defines;

    Section 3Excise duty is a duty on goods manufactured or produced in India.

    Entertainment Tax – Tax on Fun Activities

    Entertainment tax applies to movies, concerts, amusement parks, and other entertainment services. Earlier, it was a separate tax, but now it is included in GST. E.g. Cinema tickets used to have entertainment tax, but now GST applies. GST is also applicable to IPL match tickets.

    Stamp Duty – Tax on Property Transactions

    Stamp duty is imposed on property transactions and legal documents. It is a major revenue source for the government. E.g. When you buy a flat, you must pay stamp duty during registration. Legal documents submitted in courts also require stamp duty. Here, the Indian Stamp Act, 1899 defines;Top of FormBottom of Form

    Section 2(10)“Stamp” means any mark, seal, or endorsement by authority upon an instrument, denoting that duty has been paid.

    LINK BETWEEN IPR AND INDIRECT TAXATION

    IPR and taxes are both very important to the business. When they start goods and services, businesses that own IPR have to pay GST or customs duty. IPR-related profits are also taxed, like the royalty tax on copyrighted material. Taxes and intellectual property rights help keep fake and copied goods from hitting the market.

    IMPORTANT LANDMARK JUDGEMENT

    1. Tata Sons Ltd. v. Manu Kosuri & Ors. (2001): The court held that coined words which are not commonly used in the trade are distinctive and capable of registration.

    Judgment: The Delhi High Court ruled in favor of Tata Sons Ltd., affirming that coined words that are not commonly used in trade are inherently distinctive and thus capable of registration. The court held that trademarks, especially those that are arbitrary or fanciful, deserve stronger protection as they inherently serve as source identifiers. This case reinforced the notion that a combination of words forming a unique and novel expression can be distinctive, even if individual words have general meanings. The ruling also emphasized brand reputation and acquired distinctiveness as crucial factors in assessing trademark registrability.

    2. Pioneer Nuts & Bolts Pvt. Ltd. v. Goodwill Enterprises (2009): It was held that suggestive marks that do not directly describe the goods are registrable.

    Judgment: The Delhi High Court ruled in favor of Pioneer Nuts & Bolts Pvt. Ltd., holding that suggestive marks, which do not directly describe the goods or services but require consumer imagination to establish a connection, are registrable trademarks. The court stated that merely because a mark contains common words does not mean it is devoid of distinctiveness. This decision reinforced the principle that a mark must be directly descriptive of the goods or services to be barred from registration under Section 9(1)(b). If there is any element of imagination or indirect association, the mark qualifies for protection.

    Conclusion

    Crucially important ideas with direct effects on business, law, and the economy are IPR and indirect taxation. Indirect Taxation is a tax system that influences every consumer but is not immediately evident in the buying process, while IPR offers legal protection for innovative ideas and technologies.

    • IPR will guard and protect your brand and ideas if you are a creator or entrepreneur, thereby making sure nobody replicates or copies them without permission.
    • Indirect tax influences the cost of every good and service, hence, even if you are a consumer, you should know.

    In the end, fair competition and a balanced economy are preserved by IPR and indirect taxations. Under appropriate control, IPR may inspire creativity, a fair tax code will help firms and consumers both.

    References

    https://ipindia.gov.in

    https://copyright.gov.in

    https://gst.gov.in

    https://indiankanoon.org

    Author

    Ms. Nimisha Singh Kushwah, Law Student at Institute of Law, Jiwaji University, Gwalior, Madhya Pradesh.

  • SECTION 34 OF THE TRADE MARKS ACT, 1999

    Section 34 of the Trade Marks Act, 1999 is arguably one of the most fundamental sections of the trademark law in India. The primary objective of the trademark law is to protect the rights of the genuine prior users and original adopters of the trademark and section 34 is one of the tools to ensure exactly that. This article will delve deep into the intricacies of Section 34 of the Trade Marks Act, 1999, related doctrines and case laws.

    Basis of Section 34 of the Trade Marks Act, 1999

    Section 34 of the Trade Marks Act, 1999 derives its existence from the common law doctrine of ‘Prior Use’. The Prior Use Doctrine aims at safeguarding the rights of prior users of a trademark. Similarly section 34 of the Trade Marks Act, 1999 also aims at protecting the rights of the prior user and adopter of a trademark by prohibiting the registered proprietor of a trademark to interfere with or restrain the use of the identical or similar trademark by its prior user.

    For Example: A lawfully adopts and starts to use the mark ‘Banana’ in relation to Footwear in 1999 and continues to use such a mark in trade without acquiring any trademark registration for the same. Later, in the year 2005, B adopts the mark ‘Banannaa’ in relation to the same set of goods and thereafter also acquires trademark registration for the same. However, after acquiring the trademark registration, B tries to restrain the use of the mark ‘Banana’ by A on account of its trademark registration. In such case, B’s act of trying to restrain the use of the mark ‘Banana’ by A is barred by the provisions of section 34 of the Trade Marks Act, 1999.

    Here, although A did not acquire the registration of its trademark, this does not take away his right as the adopter, originator and prior user of the trademark. This is exactly where the provisions of section 34 of the Trade Marks Act, 1999 comes into play. In the aforementioned illustration, A has the common law rights as the prior user continue to use its mark without interruption for any subsequent user or adopter.

    Understanding Section 34 of theTrade Marks Act, 1999

    Section 34 gives better rights to prior user as compared to a registered proprietor by taking away the registered proprietor’s right to interfere with or try to restrain the use of an identical trademark by a prior user. This basically means that registered proprietor’s rights cannot grant it superiority over a prior user.

    This provision recognises the common law rights of a prior user accumulated overtime due to use the continuous use of its mark in the market and grants it superiority over the statutory rights acquired by someone due to registration.

    • Registration gives Statutory Rights
    • Use gives common law rights

    Generally, when a person who is the original adopter, continuous user and bona fide originator of the mark, gets its trademark registered, such person is awarded with both statutory as well as common law rights arising from its mark. However, section 34 of the Trade Marks Act, 1999 specifically talks about the situation when such statutory and common law right are held by separate person on account of their registration and prior use respectively.

    Essentials of Section 34 of theTrade Marks Act, 1999

    The following are the essential conditions for the applicability of this Section 34 of the Trade Marks Act, 1999:

    • The third party must be using a mark which is identical to the registered mark;
    • Such mark must be use in relation to similar set of goods and services as the registered mark;
    • Such use of the identical mark must be of a prior date of use than the registered mark;
    • Such use by the third party must be continuous and uninterrupted;

    The term “USE” under section 34 of the Trade Marks Act, 1999 means continuous and consistent use for a substantial time period. prior to the date of filing or date of use of the registered mark. Such “USE” shall not be broken or intermittento. Use must be uninterrupted and such that would sufficiently generate recognition of the mark of the prior user in the market and trade circle.

    Prior Use Vs. Registration

    It is very common in trademark cases for there to be a fight between prior use and registration. This dispute was finally and conclusively settled by the Hon’ble Supreme Court in the case of S. Syed Mohideen vs P. Sulochana Bai, https://indiankanoon.org/doc/149416858/, has categorically and vehemently held that prior use is superior than registration. Hon’ble Court also held that the even the registered proprietor cannot interfere with the rights of prior user.

    A similar finding was made by the Hon’ble court in the case of N.R. Dongre And Ors vs Whirlpool Corporation, wherein the Hon’ble Supreme court recognised the trans-border reputation of Whirlpool’s mark and, owing to its prior use, substantial transborder recognition and goodwill, granted Whirlpool protection against trademark squatting and passing off.

    To secure protection under section 34, the prior user must establish bona fide adoption and good faith usage with substantial corroborating evidence.

    Conclusion

    The prior use doctrine, section 34 of the trademark law as well as passing off rights under granted under section 27, all aim to protect the rights of prior user from undue exploitation from later registrants. Indian courts have also time and again clarified its stance on this issue and consistently upheld the rights of prior users, thereby, granting assurance to actual originators and bona fide adopters that their rights remain secured irrespective of trademark registration.

  • Conflict Between the Anti-Dissection Rule and the Law of Dominant Feature in Relation to the Trade Marks Act 1999

    In the Law of IPR, particularly in trademarks, two fundamental principles frequently come into conflict: the Anti-Dissection Rule and the Law of Dominant Feature. The Anti-Dissection Rule states that a trademark cannot be analyzed by breaking it into parts or segments. In contrast, the Law of Dominant Feature asserts that the most prominent part of a mark holds the greatest significance while assessing the degree of resemblance and possibility of confusion.

    This dispute is central to most of the trademark issues dealt with under the Trade Marks Act, 1999 because the courts have to find a middle ground in their assessment of a mark to ensure that it is not treated in a mechanical way with emphasis placed only on its prominent features. In this instance, these approaches are examined from the standpoint of their relationships with trademark jurisprudence.

    Anti-Dissection Rule and The Law of Dominant

    The Anti Dissection Rule in Trademarks

    A trademark should be assessed on how distinctly different it is from other marks and whether it has the potential to create confusion with them.

    The reason this rule was put in place is that consumers tend to view these emblems as a single entity rather than as individual parts. This principle makes it impossible for companies to have monopolistic control over commonly accepted words, or elements which, in actual fact, when looked at in isolation lack distinctiveness.

    According to the Trade Marks Act, 1999, a court must follow this rule for ascertaining similarity trademarks. Marks must always be regarded as a whole and not as a collection of parts. This is especially important in situations where the name contains some generic or descriptive portions along with some distinctive parts.

    The Law of Dominant Feature in Trademarks

    This approach is in sharp contrast to the previous insights as it specializes in one mark per view. The Law of dominant feature states that the most important or striking part of a trademark is the one that decides the level of distinctiveness and confusion. Courts tend to apply this approach where one part of a mark is so unique that it overshadows the remainder which is largely descriptive or generic.

    For example, where two marks contain one strikingly distinctive word or symbol, the dominant feature rule may determine that mark is identical, regardless of other differences in the marks. In addition to describing a mark, this rule is also vital where a mark includes several words, pictures or symbols, or words which are stylized.

    Clash of Two Principles in Trademark Law

    The controversy on anti-dissecting rule conflict with the law of dominant feature comes into play when court has to decide whether to evaluate the trademark as a whole or concentrate on its focal distinguishing features. This conflict is evident in multiple areas of trademark disputes under the trademark act of 1999.

    1. Composite Marks and Overall Impression

    When Anti-Dissection Rule is applied to marks containing multiple elements, differing results may occur compared to when employing the Dominant Feature Rule. In cases where a trademark has both generic and distinctive components, courts must decide whether the entire mark will be the primary focus or the focal point will be the most dominant portion.

    2. Phonetic and Visual Similarity

    Conceptually, these two branches have issues related to whether particular phonetic or visual similarities should be studied as one unit or through a lens of prominence. The division of the trademark required by the Anti-Dissection Rule takes the entire trademark into account, whereas the Law of Dominant Feature may give some prominence to a particular word or design which lends itself to be comparatively prominent.

    3. Trademark Enforcement and Protection

    Within the context of enforcement, Anti-Dissection Rule or restrictions on Trademarks is more favorable for brand owners and may be supported by the Dominant Feature approach, which brand owners may suggest protects crucial trademark elements from being utilized by competitive merchants. With the application of Anti-Dissection Rule, it is guaranteed that trademarks will not be unfairly fragmented to claim infringement over non-distinctive or non-specific words.

    4. Consumer Perception and Market Realities

    To what extend these principles diverge cannot be examined without a reference to consumers. Anti-Dissection Rule advocates the view that trademarks are put together as a whole, while those applying the Dominant Feature view admit that some features are more fundamental because of their greater prominence used in branding and advertising.

    Striking a Balance Under the Trade Marks Act, 1999

    Indian trademark law tends to deviate from principles with the attempt to balance both thorough consideration and important highlights through a case-by-case approach. The Hon’ble courts have time and again held that Rule of Anti-Dissection and Dominant Figure are not Anti-thesis to one another, rather, the two doctrines complement each other by providing a comprehensive judegement of deceptive similarlity. Factors that the courts examine include:

    • The distinctive nature of separable parts.
    • The possibility of confusion among consumers.
    • The primary overall mark impression.
    • The presence of common distinctive elements versus unique descriptive words.

    With regard to balance the protecting mark fairness courts have maintained the need for context ensuring that both principles does not form rigid application. Rather, both rules are applied depending on the nature of trademarks under contention.

    Landmark Cases Addressing This Conflict

    Several notable cases highlight the application of these conflicting principles:

    1. Parle Products (P) Ltd. v. J.P. & Co. – The Supreme Court ruled that marks must be compared as a whole, reinforcing the Anti-Dissection Rule.
    2. M/s South India Beverages Pvt. Ltd. v. General Mills Marketing Inc. – The court focused on the dominant element in a trademark dispute, emphasizing its impact on consumer perception.
    3. ITC Limited v. Nestle India Limited – The Delhi High Court analyzed both the holistic impression and dominant features of competing trademarks before reaching a decision.
    4. The dominant feature theory and the anti-dissection rule—dominated the legal struggle between PhonePe and BharatPe.  Claiming that the main and unique component of its trademark was the shared suffix “Pe,” PhonePe asserted that BharatPe’s usage of it would mislead consumers.  The court disagreed with this point of view, stressing instead that trademarks have to be evaluated overall, as per the anti-dissection rule, which prohibits isolating individual elements of a composite mark to assess similarity. The suffix “Pe,” derived from the Hindi word “पे” meaning “on,” was considered descriptive in nature and lacked inherent distinctiveness.  Rather, the court decided that the real differentiator was the more noticeable aspects, “Phone” and “Bharat” These elements were obviously different in phonetic, visual, and structural identity, so customer confusion was quite rare.  Moreover, the court reiterated that exclusive rights cannot be claimed over a common or descriptive element unless it has acquired distinctiveness or secondary meaning, which “Pe” had not. Consequently, PhonePe’s claims were dismissed, and the judgment underscored the importance of considering trademarks holistically rather than dissecting them into isolated, non-distinctive parts.

    Conclusion

    The interplay between the Anti-Dissection Rule and the Law of Dominant Feature in Indian trademark law under the Trade Marks Act, 1999 illustrates a critical legal challenge. While the Anti-Dissection Rule ensures trademarks are assessed in their entirety, the Law of Dominant Feature recognizes the practical reality that certain elements stand out more prominently in consumer perception.

    A balanced approach that considers both principles allows courts to provide fair rulings while protecting both brand owners and market competition. Addressing this conflict through a nuanced, case-specific analysis ensures that trademark law remains adaptable and effective in fostering brand protection and consumer clarity.

    Author Details: Aditya Krishna Gupta, 3rd year, BA LL.B. , Jiwaji University, Gwalior 

    References

  • Section 18 of the Trademarks Act 1999: Application for Registration

    The Trademark law in India provides a structured process for the registration of trademarks. This is done in order ensure brand protection and legal enforcement against any type of infringement. Under the trademark law the central provisions which govern the trademark registration in India is the Section 18 of the Trademarks Act. 

    This section specifically lays down the procedure and eligibility criteria for filing of a trademark application. It correspondingly clarifies in detail who can apply for a trademark and who cannot along with the necessary formalities, and all the essential aspects to form a valid application.

    General Terms Associated with Section 18:

    Applicant: An Applicant can be a person or an entity like sole proprietors, businesses (Registered Companies), partnerships (like LLPs), trusts, or even government bodies applying for trademark registration.

    Proprietor: Proprietor is the individual or legal person who claims the ownership of a trademark and seeks exclusive rights to it.

    Proposed to be Used: A trademark application can be filed even before the actual use of the said mark. It is done so provided that the applicant has a bona fide intention to use it in the coming future.

    Service Mark: It is a trademark which is used to identify services in order to distinguish them from the goods. For example, a logo of a famous hotel chain is a service mark.

    Goods Mark: It’s a trademark which is used to identify and distinguish products i.e. goods. For example, the “Nike” logo is specifically registered and known for footwear and apparel wear.

    Subsections of Section 18 of The Trademarks Act, 1999

    Section 18 governs the application procedure for registration of a trademarkas per the Trademarks Act 1999. It mainly consists of four vital subsections that outline specifics. These specifics include l who can apply, the requirements of a bona fide intention to use the said trademark, and the procedure involved in registration.

    Section 18(1): Who Can Apply for a Trademark 

    According tothe Section 18(1) of Trademarks Act, any legal person who is claiming to be the proprietor of a trademark can apply to register it for themselves.

    They can be individuals, businesses, and legal entities. Even foreign entities can also apply for registration of a trade mark in India, however, only if they comply with Indian trademark laws. Joint applicants can also file a trademark application for registration of a trade mark together.

    Illustration: A Start-up Founder Applying for a Trademark

    Let’s imagine an entrepreneur, Raj, launching a new brand of organic skincare products under the name “GlowPure.” Even before selling any product, he can file a trademark application under Section 18, claiming proprietorship and expressing an intent to use the mark.

    Section 18(2): The Requirement of Bona Fide Intention

    According to Section 18(2), an application for registration of the trade mark must be filed with a genuine intention to use the trademark in a commercial field. This means an applicant cannot register a trademark just to ‘block’ others from using it. They must be intending to use it for themselves.

    Case Law: Pfizer Products Inc. v. Rajesh Chopra & Ors. (2006 (32) PTC 301 (Del)

    In context of this case, Pfizer, the American pharma giant, opposed a trademark application on the grounds that the applicant had “no bona fide intention” to use the mark. Delhi High Court held that if an applicant cannot demonstrate a genuine intention to use the trademark, their application may be rejected by the Registrar. To learn more about this case visit Indian case law.

    Illustration: Preventing Trademark Hoarding

    Suppose a company registers the name “ZyloTech” for mobile phones but never launches a product under this name. And now if another business wants to use “ZyloTech” for electronics and can prove the first applicant had no real intention to use the mark, they may challenge the registration.

    Fun Fact: If the owner has not applied the trademark to the goods or services for a continuous period of five years or more, the Registrar has the authority to withdraw the trademark from the Register. Five years from the day the trademark is entered into the Register, the Registrar will compute. 

    As a result, a person or business will forfeit their trademark rights if they do not use their registered trademark for five years after the date of registration.

    Trademark Registration and Past Use Without Usage

    As per theSection 18(2), a trademark applicant must have a “bona fide intention” to use the said mark. Nevertheless, what happens if someone has been associated with a trademark but hasn’t actually used it in commerce and now wants to register it?

    This situation commonly arises when businesses have reserved a brand name, have built recognition through promotions, or have used it sporadically without actual trade. Indian courts have recognized that past association with a mark, even without substantial use, can support registration—provided there is a genuine intent to use it in the near future.

    Case Law: Hardie Trading Ltd. v. Addison Paints & Chemicals Ltd. (2003 (27) PTC 241 (SC))

    In this case, the Supreme Court held that mere non-use of a mark does not automatically disqualify a proprietor from registration, but lack of intent or unjustified delays in use may lead to cancellation.

    Can You Use a Trademark Immediately After Filing?

    If an application is filed today, can the owner start using the trademark right away? Absolutely Yes, a trademark applicant can start using the mark immediately, even before registration is granted. That is because trademark rights in India are based on use, not just registration.

    However, under Section 46, if a trademark is registered but remains unused for five consecutive years, it may be removed from the register due ‘to non-use cancellation’. This means businesses should commence usage as soon as possible to maintain exclusive rights.

    Thus, while a pending application provides some legal standing, full proprietary rights and legal enforcement only arise once the mark is successfully registered.

    Section 18(3): Filing a Trademark Application 

    As per Section 18(3) of the Trade Marks Act, a trademark application must be filed in the prescribed manner, accompanied by:

    • A clear representation of the mark.
    • Details of goods or services the mark will be used for.
    • The applicant’s name and address.
    • A statement declaring whether the mark is already in use or is “proposed to be used.”
    • Payment of the prescribed fee.

    Case Law: Amar Nath Sehgal v. Union of India (2005 (30) PTC 253 (Del))

    This case in particular emphasized the importance of properly filing and maintaining trademark applications in order to ensureit’s legal validity and protection.

    Illustration: Trademark Filing for an E-Commerce Brand

    Take a company named “ShopEase” files a trademark application for its online shopping platform. It provides details about its logo, service category (e-commerce), and business owner details to complete the application correctly.

    Section 18(4): Single or Multiple Class Applications

    Section 18(4) of the Trade Marks Act allows an applicant to file for trademark registration under:

    • A single class, if the trademark applies to one category of goods/services.
    • Multiple classes, if the trademark is intended for different types of goods/services.

    Case Law: Dabur India Ltd. v. Emami Ltd. (2004 (29) PTC 1 (Del)

    In this case, Dabur applied for a trademark in multiple categories, but Emami challenged it, claiming overlapping product lines. The Court clarified the need for clear classification in multi-class applications.

    Illustration: A Fashion Brand Expanding to Accessories

    A fashion brand “TrendWear” initially registers its trademark under Class 25 (clothing). Later, as it starts selling handbags and shoes, it files additional applications under Class 18 (leather goods) and Class 35 (retail services).

    Key Takeaways from Section 18

    • Anyone who claims to be a trademark proprietor can apply for registration of a trademark.
    • A bona fide intention to use the trade mark for which the application for registration has been filed is mandatory.
    • The application for registration must follow prescribed procedures.
    • A trademark can be registered under one or multiple classes.

    Conclusion

    Thus, Section 18 of the Trademarks Act, 1999, ensures a structured and fair trademark application process. By requiring a ‘bona fide intention’ and clear application formalities.It prevents fraudulent filings and ensures genuine proprietors receive their due legal protection. So businesses and individuals seeking trademark registration should accordingly ensure their compliance with the prescribed guidelines as to strengthen their intellectual property rights.

    Author- Apoorva Lamba, 2nd Year LLB. Student of Madhav Mahavidyalaya, Jiwaji University, Gwalior

  • Section 17 of the Trademarks Act & the Anti-Dissection Rule

    Introduction

    The Trademark law in India plays a crucial role in protecting one’s brand identity, and ensuring fair competition a cutthroatmarket. Unsurprisingly, Section 17 of the Trademarks Act 1999 stands up to the task. As it governs the rights conferred on a registered trademark as a whole, which in turn reinforces something called the Anti-Dissection Rule. This principle prevents the selective or piecemeal examination of a composite trademark and ensures that protection is granted to the mark as a whole rather than to its individual elements.

    Common Words Associated with Section 17 explained:

    Composite Mark – It is a mark that includes a combination of elements. These elements can include shapes, words, scents, devices, sounds, and/or colors. The best specimen of a Composite Mark is a logo because a logo usually consists of shapes, words, specific colors&even at times, images.

    Disclaimed Elements – When a trademark includes a common word or phrase, the trademark owner may be required to ‘disclaim’ that part. Itmeaning that they cannot claim exclusive rights over it. This occurs when a portion of the trademark is by nature generic or descriptive and commonly used in the industry.

    Non-Distinctive Elements Some words, symbols, or phrases are considered ‘too generic’ or commonly used to meet the requirements under trademark protection. These are termed as non-distinctive elements. It is because they do not help consumers uniquely identify a brand. E.g., ‘Fresh’

    Generic Terms Generic terms are words or phrases that directly name a product or service and are commonly used in the industry. Such terms cannot be trademarked because as belong to the public domain. For example, “Milk” for a dairy brand or “Laptop” for a computer company. Those cannot be registered as trademarks since they are standard product namesfor their specific industries.

    Descriptive Terms – Descriptive terms describe a characteristic, feature, or quality of a product or service. While initially weak as trademarks, they can gain protection if they acquire secondary meaning over time. For example, “Cold & Creamy” for ice cream is descriptive, but if consumers associate it specifically with one brand, it may become protectable. 

    Section 17: Its Subsections and their Applicability:

    Section 17 of the said act deals with those rights which are conferred upon an entity with the registration of a trademark. This is mainly relevant in cases where the mark consists of multiple elements i.e., a composite mark. 

    The key principle here is that the trademark protection extends to the entire composite mark and not to each component separately, unless specifically disclaimed.

    Section 17 mainly consists of these two subsections-

    1. Section 17(1): Exclusive Rights Over Composite Marks

    According toSection 17(1) of the Trademarks Act, 1999, when a trademark is registered as a whole i.e., in its ‘entirety’, then theholderof the said mark gets exclusive rights over the entire mark, and not just different parts of it. What this means is that if a company today trademarks a full brand name, they can protect it from being copied. But they cannot claim ownership over individual words within the name if they are commonly used.

    Illustration: Imagine a bakery named “SweetBite Bakery” that has effectively registered its entire brand name under the trademark law. This would mean:

    • They have exclusive rights over “SweetBite Bakery” as a whole.
    • They cannot stop others from using “Bakery” alone because it is a generic term.
    • But they also cannot claim sole ownership of “Sweet” or “Bite” or “Bakery” separately. That is so because these words are very commonly used in the food industry.

    But, if tomorrow another bakery tries to open under the name of “SweetyBite” or “Sweet Bakes”, then it may possibly cause confusion among customers. Only thencan SweetBite Bakery take any legal action.They may that the new names are too similar to their trademark as a whole, potentially misleading customers.

    Case Law: Parle Products (P) Ltd. v. J.P. & Co. (AIR 1972 SC 1359)

    Similarly in this particular case, Parle Products, a well-knownbrand for their biscuits, had a trademark for “Glucose Biscuits” with distinctive packaging. A competitor then introduced a product with nearly identical name and packaging.

    Thus, Supreme Court ruled that minor differences in individual words or design elements do not matter if the overall mark creates confusion among customers. It emphasized that the composite mark must be considered as a whole while determining trademark infringement. To know more about this case law visit casemine.

    2. Section 17(2): No Exclusive Rights Over Disclaimed Parts

    Section 17(2) of the Trademarks Act, ensures that no exclusive rights are claimed over ‘disclaimed’ or ‘non-distinctive elements’ of a composite mark. So, if a composite trademark, then contains such terms, the proprietor cannot claim exclusive rights over those. This rightfully prevents trademark owners from monopolizing commonly used words, generic terms, or descriptive elements. As they are used by the other businesses in the industry as well.

    Let’s take an example, say if a brand registers a composite mark like “FreshBites Bakery”. This means it receives exclusive rights over the full namei.e.”FreshBites Bakery”. Meaningit does not receive monopolyover the individual words of “Fresh” or “Bakery’. This is because these are very commonly used in the food industry. Hence, other businesses can use similar terms, like “Healthy Bites” or “Tasty Bakery,” without infringing upon the trademark.

    Case Law: Marico Limited v. Agro Tech Foods Limited (2010 (44) PTC 736 (Del))

    Similarly, in Marico Limited vs Agro Tech Foods Limited, Marico, the owner of the trademark “LOSORB”, sued Agro Tech Foods. Agro Tech Foodswas using the mark “LO-SALT”. The court held that “LO” is a common abbreviation for the term “low” and cannot be monopolized by one party. The protection was limited to the composite mark of “LOSORB”, and the use of “LO-SALT” was thus not considered infringement.

    Therefore, Section 17(2) ensures that businesses cannot unfairly restrict competitors from using descriptive or industry-specific terms while still protecting their brand identity as a whole.

    Proprietors Cannot Claim Exclusive Rights Over Common or Descriptive Parts:

    As we now understand that Section 17 of the Trademarks Act ensures that businesses cannot monopolize generic, descriptive, or commonly used terms that are essential for fair competition. So, if a word is frequently used in an industry or has a general meaning, exclusive rights cannot be claimed over it. Even though it isa part of a registered trademark. Courts have consistently upheld this principle to prevent unfair advantages and to ensure availability of such terms for public use.

    Similar sentiments were expressed in Mr. A.D. Padmasingh Isaac and M/s Aachi Masala Foods (P) Ltd vs Aachi Cargo Channels Private Limited. Madras High Court ruled that the term “Aachi,” meaning “grandmother” in Tamil language, was a commonly used word.Therefore, it could not be monopolized by Aachi Masala Foods despite the plaintiff’ holding a registered trademark. The Court held that common words should remain available for others to use in a descriptive manner.

    Likewise, Bhole Baba Milk Food Industries Ltd V. Parul Food Specialities (P) Ltd, inquired the same principle. Question arose whether the word “Krishna” can be trademarked. The Court observed that “Krishna” is a widely recognized Indian name, similarto “John” in the West. And held since the term was generic and widely used, it did not acquire ‘secondary distinctiveness’. Despite it being a part of a registered trademark.

    So, we can successfully say that these rulings have time and again reaffirmed the aforementioned position.Registration in itself does not automatically grant exclusivity over common words or descriptive elements.That is unless they acquire distinctiveness over time through extensive use. So, if a business seeks exclusive rights over a particular word, it must be proven that the term has gained a unique association with the brand in the minds of consumers, rather than merely being a common or descriptive term.

    Understanding the Anti-Dissection Rule

    The Anti-Dissection Rule is a fundamental principle in the trademark law. According to which composite trademark must be considered in its entirety, rather than being analyzed in isolated parts. The rationale behind this rule is that consumers perceive trademarks as a whole rather than breaking them down into individual components.

    Illustration of the Anti-Dissection Rule in Action

    Illustration 1: ‘KENT RO SYSTEMS’ vs. ‘KENT PURE WATER’

    If ‘KENT RO SYSTEMS’ is a registered trademark, another company cannot register ‘KENT PURE WATER’ by arguing that ‘RO SYSTEMS’ is common.

    The composite mark ‘KENT RO SYSTEMS’ is protected as a whole, meaning that ‘KENT’ alone cannot be monopolized unless separately registered.

    Judicial Interpretation of the Anti-Dissection Rule

    1. K.R. Chinna Krishna Chettiar v. Sri Ambal& Co. (AIR 1970 SC 146)

    The Supreme Court held that a composite mark must be compared as a whole. And not simply by dissecting its individual components. The Court further ruled that likelihood of confusion must be judged from the overall impression that the mark creates on the consumer’s mind.

    2. M/s South India Beverages Pvt. Ltd. v. General Mills Marketing Inc. &Anr. (2014 SCC OnLine Del 1956)

    The Delhi High Court held that when evaluating trademark similarity, the composite mark must be viewed in its entirety.

    The case involved the dispute between ‘HAAGEN DAZS’ (a global ice cream brand) and ‘D’DAZS’ (an Indian brand).

    The Court ruled that since ‘DAZS’ was not a standalone distinctive element, the defendant could not claim exclusive rights over it and confusion must be evaluated based on the whole mark.

    3. Cadila Healthcare Ltd. v. Cadila Pharmaceuticals Ltd. (2001) 5 SCC 73

    The Supreme Court emphasized that the overall structure, phonetic similarity, and idea behind the mark must be considered.

    It rejected the argument that individual words in a mark should be compared in isolation.

    Exceptions to the Anti-Dissection Rule

    While the Anti-Dissection Rule generally applies, there are cases where courts have considered dominant parts of a mark in determining infringement.

    1. The Doctrine of Dominant Feature

    Sometimes, a dominant part of a mark is considered separately if it leaves a lasting impression on the consumer.

    Case Law: M/s Shree Nath Heritage Liquor Pvt. Ltd. v. Allied Blender & Distilleries Pvt. Ltd. (2015 SCC OnLine Bom 2309)

    The dispute was between ‘Officer’s Choice’ and ‘Collector’s Choice’.

    The Bombay High Court held that ‘Choice’ was a common word, but ‘Officer’s’ was the dominant part of the mark.

    Therefore, Collector’s Choice was found to be deceptively similar to Officer’s Choice.

    2. Phonetic & Visual Similarity Overrules Anti-Dissection Rule

    Courts may sometimes give more importance to phonetic or visual similarities, even if only a part of the mark is identical.

    Example: ‘McDowell’s No.1’ vs. ‘McDonald’s’

    Though both contain ‘Mc’, the overall trade dress and product category are different, so they were not considered similar.

    Therefore, Section 17 of the Trademarks Act, 1999 establishes the Anti-Dissection Rule. It ensures that trademarks are protected as a whole rather than in isolated parts. This prevents businesses from monopolizing generic words while ensuring fair competition. However, courts have also developed exceptions, particularly when:

    • A dominant part of the trademark creates confusion.
    • Phonetic or visual similarity outweighs dissection principles.

    For businesses, this means when registering trademarks, choose distinctive elements to avoid mandatory disclaimers under Section 17(2). In case of infringement, focus on overall similarity rather than isolated words. 

    Author – Apoorva Lamba (2nd Year Student Madhav Mahavidyalya, Jiwaji University, Gwalior)

  • SECTION 28 OF THE TRADE MARKS ACT, 1999

    The Trade Marks Act, 1999 provides legal protection to registered trademarks, allowing owners to exclusively use and also to sue other trade marks for infringement. This exclusive right to use the registered trademark is provided under section 28 of the Trade Marks Act. 

    This article discusses the provision of section 28 of the Trade Marks Act in detail:

    Section 28(1) of the Trade Marks Act:

    Section 28(1) of the Trade Marks Act provides two rights to the Registered Proprietor:

    1. Exclusive right to use its registered trade mark: The Registered Proprietor has sole authority to use its registered trade mark.
    1. Right to seek relief in case of infringement: By virtue of exclusive right or sole authority over a registered trade mark, the Registered Proprietor has right to take legal action and seek relief against any person who is using the trade mark similar to its registered trade mark in any manner or such unauthorised use leads to confusion or deception amongst consumers or even general public.

    However, it is to be noted that such exclusive right to use a trademark is limited to specific goods or services in respect of which the trade mark obtained registration. In addition, the exclusive right granted under section 28(1) of the Trade Marks Act is not absolute and are subject to provisions of the Trade Marks Act.

    Illustration:

    A person ‘X’ got the trademark ‘Flewbee pretty’ registered for clothes and footwears. Later, ‘Y’ applied for registration of the same mark for the same goods. ‘X’ can stop ‘Y’ from using the same mark by taking legal action against him as ‘X’ have exclusive right to use the mark ‘Flewbee pretty’ for clothes and footwears by virtue of Registration under the Trade Marks Act.

    For more on trademark infringement and legal actions, visit WIPO’s Trademark Guide.

    Section 28(2) of the Trade Marks Act:

    The exclusive right conferred by section 28(1) of the Trade Marks Act to the registered proprietor to use the registered trade mark is not absolute. This exclusive right to use the registered trade mark is subject to conditions and limitations imposed on the trade mark while granting it registration.

    The conditions or limitations might be geographical, restriction on style or design of the mark, etc.

    Illustration:

    A person ‘X’ got his trademark ‘Flewbee pretty’ registered for clothes and footwears with the condition that the same shall be used only in the region of Madhya Pradesh and Maharashtra (Geographical condition). Later, ‘Y’ applied for registration of the same mark ‘Flewbee pretty’ for the same goods to be used in ‘Chandigarh’. ‘X’ cannot stop ‘Y’ from using its trade mark, as ‘X’ has exclusive right to use the trade mark ‘Flewbee pretty’ only in the region of Madhya Pradesh and Maharashtra.

    Section 28(3) of the Trade Marks Act:

    Section 28(3) of the Trade Marks Act provides that in case two or more persons have identical or similar registered trade marks, the exclusive right to use one registered trade mark does not extend against other similar registered trade marks. In simple words, it is clear that the However, the owners of such similar registered trade marks will have same rights against other persons using the trade mark similar to their registered trade mark. 

    Illustration:

    ‘X’ has registered Trade Mark ‘Flewbee pretty’ and ‘Y’ has registered trademark ‘‘Flewby pretty’’. Both the trade marks are similar, however, neither ‘X’ nor ‘Y’ can take any action against each other. But if ‘Z’ uses the mark ‘Flewbii pretty’ and the same is unregistered. Both ‘X’ and ‘Y’ will have same right to take action against ‘Z’.

    Case Law related to section 28 of the Trade Marks Act:

    P.M. Diesels Private Limited v. Thukral Mechanical Works

    In this case, it was decided that since both parties were registered proprietors of identical trade marks, although for different kinds of goods, neither the plaintiff nor the defendants had the right to file a lawsuit against the other. However, in the event that the trademark was violated by any third party, they would have the right to pursue legal action against any third party. To get in more depth about this case

  • SECTION 27 OF THE TRADE MARKS ACT, 1999

    The Trade Marks Act, 1999 provides legal protection to registered trademarks, allowing owners to exclusively use and also to sue other trade marks for infringement. Section 27 of the Trade Marks Act also provides statutory protection to unregistered trademarks by upholding common law rights through the passing-off principle. In accordance with section 27 of the Act even though an unregistered trademark cannot be protected through an infringement case, the owner may still pursue legal action if someone tries to mislead consumers or damage the company’s reputation by abusing the mark.

    Let’s discuss section 27 of the Trade Marks Act, 1999 in detail.

    Section 27(1) of the Trade Marks Act:

    According to Section 27(1) of the Trade Marks Act an infringement suit cannot be filed against an unregistered trademark i.e. the trade mark not registered under the Trade Marks Act, by any person. 

    Illustration: 

    A person ‘X’ uses a trademark ‘PickliBoo’ for confectionery goods. The trademark ‘PickliBoo’ of ‘X’ is not registered under the Trade Marks Act. If other person ‘Y’ copies the mark ‘PickliBoo’, ‘X’ cannot file an infringement suit against the copied trademark of the ‘Y’ since the mark ‘PickliBoo’ is not registered by ‘X’. 

    Section 27(2) of the Trade Marks Act:

    Section 27(2) of the Trade Marks Act protects registered as well as unregistered trade mark. This section recognises common law rights of the trade mark owner to take action against any person for passing off goods or services as the goods or services of another person. Accordingly, even if a trade mark is not registered, the owner of such trade mark can still take action under the common law principle of passing off. 

    And, for this, the owner of the unregistered trade mark must prove that the said trade mark has reputation and goodwill in the market, there has been misrepresentation in the market and owing to this the use of the other copied mark would substantially damage the business of the owner of the unregistered trade mark.

    Illustration:

    A person ‘X’ uses a trademark ‘PickliBoo’ for confectionery goods. The trademark ‘PickliBoo’ of ‘X’ is not registered under the Trade Marks Act, however, enjoys substantial goodwill and reputation in the market and have extensive market base. If other person ‘Y’ copies the mark ‘PickliBoo’, ‘X’ can file a Passing off suit against the copied trademark of the ‘Y’.

    Conclusion

    In conclusion, section 27 of the Trade Marks Act restricts legal action for infringement to registered trademarks only. Nonetheless, it recognizes passing off as a powerful remedy to protect business reputation and goodwill for unregistered trademarks.

    Learn more about common law rights and passing off at WIPO and IP India.

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