Understanding Trademark Rights in the Business

Trademark rights are an essential integral part of business lives. The system ensures that the consumers can distinguish between two goods and services. The Trademark regime in India is governed by the Trademarks Act, 1999, formally known as Trade and Merchandise Act, 1958. The Act sets out fundamental provisions that elaborate, regulate, and enforce trademark rights. 

In this blog, we shall discuss sections 9, 11, and 28 to 32 of the Act and how they shape trademark rights and strategies for businesses.

What is a Trademark?

A trademark can be referred to as a symbol, word, or even a phrase describing goods from one entity to another. It basically sounds similar to something that belongs to the concept of brand identity. Trademarks can be logos, shapes, even color combinations, etc. They are so important for brand loyalty and consumer confidence.

Trademark Rights: The Legal Framework

Section 9: Absolute Grounds for Refusal of Registration

Absolute Grounds for Refusal of Trademark Registration Lists out the absolute grounds for refusal of registration of trademarks. This section states that given marks can’t be registered. For instance, trademarks that are descriptive or generic in nature cannot be trademarked. 

• Generic Terms: This is a term that usually signifies a generic or common name. For instance, “Bottle” cannot be trademarked, as it is a highly generic term. In other words, any word that is non-distinctive in nature, may not be trademarked, until unless it has obtained well recognised public recognition. 
• Descriptive Marks: Marks that describe the goods or services, may not be trademarked. For instance, a trade-name like “No Soap” for face-washes may not be trademarked, unless it has obtained well-recognized public recognition. 

Knowledge about these grounds is essential to businesses. A trademark is considered void if it is not unique. Hence, it does not offer legal protection.

Section11: Relative Grounds for Refusal of Registration

Section 11 of the Act has been providing relative grounds for refusal. Section 11 precludes an existing trademark from being registered, or in other words, it bars an already existing trademark from being infringed upon by a new applicant. If the proposed mark is either similar or identical with a prior mark, then it can also be refused for registration.

This chapter is crucial to businesses because it eliminates vagueness among the consuming public. A strong brand can guard its identity against newcomers wanting to ride on its coat tails. For example, if an emerging soft drink corporation is going to use a name close to “Coca-Cola”, the application would most likely be rejected.

Section 28 to 32: Rights and Remedies

• Section 28: Rights Conferred by Registration: Section 28 vest prima facie rights in an exclusive trademark owner. The owner has the rights to use the trademark and disallow others using a similar mark of the same character on similar goods or services. This exclusivity remains very relevant for maintaining the sanctity of the brand name.
• Section 29: Infringement of Trademark: Section 29 discusses what infringement is. A trademark gives rise to an infringement if it either is identical or deceptively similar to an already existing mark. The section enforces rights for trademarks, therefore discouraging any undue competition between businesses, keeping the intellect of the general public in mind. 
• Section 30: Exceptions to Infringement: Exceptions relating to use of a trademark so as not to cause confusion or otherwise may be read with explicitly enumerated sections comprising comparative advertisement under Section 30, which permits one business to refer to the trademarks of its competitor on specific provisions. This provision therefore promotes fair competition but safeguards trademark rights also.
• Section 31: Registration as Evidence of Validity: states that the register of trademarks evidences prima facie all which is therein entered. That is to say once a trademark is registered, it will be presumed valid unless otherwise proved. Thus, this gives a simplified form of litigation as it relates to trademark disputes.
• Section 32: Period of Trademark Registration: Lastly, section 32 grants trademark registration its term. Ten years is a term for the registration of a trademark that may be renewed every ten years from the date of filing the application, up until the business is alive. With this, business ventures have a golden chance to stick by their brands with the time going by in concurrence with the market.

Trademark Rights and Benefits to Business

Trademark rights offer a lot of benefits to enterprises:

• Brand Protection: Trademarks protect the brand’s identity. This gives a foundation for the continuation of trust among consumers.
• Distinction in Competition: Unique trademarks give a company a position in competition that is differentiated from its competitors. This is particularly important in developed, busy markets.
• Value of Assets: A trademark has value as business assets. This value can be sold, transferred, or licensed to create some form of wealth for the business enterprises.
• Protection Against Litigation: Registration of trademarks confers legal protection. A company can use these laws to pursue infringers and safeguard it’s brand.

Business Strategies to Enrich Trademark Law

What victorious companies know about trademark rights is that registration is not a final step. Here are some ways to build up trademark rights:

• Searching Properly: For every trademark that you will apply for, before filing the application, it is very important to carry out a proper search. This presents the opportunity to be on the lookout for trademarks that may be construed in conflict with your application. Positive action reduces chances of refusal.
• Brand Recognition: Publicize and promote the trademark. The more familiar a trademark is, the stronger the case in court will be. A brand that is more branded is substantially harder to infringe.
• Trademark Surveillance: Keep an eye on the marketplace constantly for infringement. You will see it sooner and be able to respond appropriately by paying attention to things.
• Employee Education: Educate employees of the importance of trademark rights. Guide them on how to protect the identity of the brand in their daily operation
• Renew in Good Time: Trademark registration is not a once-in-a-lifetime procedure. The trademarks should be renewed well before time lapses to protect the rights. Loss of rights may result from a lapsed trademark.
• Engage Legal Professionals: Engage trademark attorneys and take counsel on some subtlety of trademark law. They can aid in the filing, enforcement, and litigation of trademark rights.

Thrill of Trademark Rights

Trademark rights are what constitute the heart of a brand: more than technicalities, they represent imagination. Consider an apple from Apple or the shoes from Nike. The logo and slogan evoke emotion and memory. These are not symbols; they promise promises to the consumer.

Businesses that are aware of the power of trademark rights fall into the class of successful businesses. It is a lasting impression within an industry. The excitement of creating, defending, and being able to watch a brand grow is so thrilling.

Conclusion

Trademark rights make up the indispensable element of the business strategy of India. The protection basis provided by sections 9, 11, and 28 to 32 of the Trademarks Act gives a much needed robust foundation for brand identity protection.

In knowledge and use of the trademark rights, businesses create the marketplace niche in an exclusive manner. It is an interesting, and a very rewarding experience of building up and protection of the brand. 

FAQ’s

Also Read: A Deep Dive into Trademark Law: Comprehending Your Rights and Responsibilities