Trademarks are essential to intellectual property because they guarantee market
uniqueness and give brand names legal protection. Enforcing trademark laws is
crucial in the Indian market to protect the interests of consumers and
enterprises. This study explores the core idea of trademarks and highlights how
important they are for encouraging fair competition and avoiding consumer
confusion.
Subsequently, the research shifts its focus to trademark enforcement
methods, analysing the legal structures and procedural options accessible to
holders of intellectual property rights. Despite these safeguards, many
obstacles remain to overcome before trademark law can be effectively enforced in
India.
These include an overflow of cases before the courts, a lack of knowledge
among firms, a high rate of counterfeit goods, and inconsistent enforcement
across different regions. The situation is further complicated by the
complicated nature of legal processes, insufficient punishments for violations,
and limited resources. It promotes a comprehensive reform strategy that includes
tougher fines, improved allocation of funds for enforcement agencies, improved
instructional programs, and simplified laws. Additionally, the function of
international agreements and collaborative endeavours in safeguarding trademarks
across borders is examined.
The ultimate goal of this research is to present an
extensive understanding of the idea of trademarks, the complexities involved in
enforcing them, and the significant difficulties encountered in the Indian
Market. It suggests feasible ways to strengthen the system for enforcing
trademarks, which will promote a safer and more stable marketplace.By
thoroughly examining these components, the study seeks to provide workable ideas
that can improve the effectiveness of trademark law enforcement in India and
create a more stable and safer marketplace for both consumers and companies.
Introduction
A trademark is a symbol which is capable of being used to identify one company's
products or services from those of other companies. Putting simply, trademarks
let customers choose products from producers whose reputations they can trust
and distinguish between goods and services from other producers. A trademark is
a visual identification that is applied to products to demonstrate where the
goods are originated. For customers, a trademark acts as a quality assurance.
A
distinguishing mark or name [1]must be used to identify a good, service, or
enterprise due to the increased flow of goods and services. A trademark could be
any combination of unique words, letters, numerals, drawings, pictures, shapes, colours, logotypes, labels, or combinations that are used to identify products
or services. In other words, a sign may be considered a trademark if it can
carry out the necessary trademark function. Producers have branded their
products with names or other marks for centuries.
Trademark Function: To identify the origin or source and products, goods, and
services.
Example:
- The McDonald's golden arches design is an example of a registered trademark in special form format.
- The Head and Shoulders trademark is owned by the Proctor & Gamble Company. The trademark is registered in standard character format for "Hair Shampoo". The trademark is registered in special form format for "medicated hair care preparations".
- The Google trademark is owned by Google LLC. The trademark is registered in standard character format for a variety of products and services, such as "computer services, specifically cloud-based index creation," "software for accessing and searching online databases and websites," and "technical consulting services in the field of archiving of data for others like historical records and documents." The trademark is registered in special form format for goods and services like "computer hardware" and "bill payment services".
A trademark is a valuable instrument in business. It is a key component of every
business's marketing and branding strategies. The owner can use the exclusive
right to use the mark, which may be granted for an infinite period of time, to
enhance goodwill and reputation inside the business and to stop others from
deceiving customers by falsely associating it with a business that it is not
associated with. Trademarks are essential to almost every kind of business, big
or small.
The majority of countries in the world have legal trademark
protection. One area of intellectual property law, which is a more general topic
of law, is trademark law. Famous trademarks can be quite valuable since people
like to stick with brands they trust.
It is crucial to obtain legal protection for your business name by trademarking
it in India, especially in the highly competitive business environment. You
obtain the only right to use that name and stop anyone from using it without
your consent when you register your trademark. This guarantees the protection of
your brand identification and sets your goods or services apart from those of
rivals. You can take legal action to prevent unlawful use of your company name,
logo, or tagline by registering a trademark.
You have the right to pursue
remedies and assert your rights if someone tries to use your trademark infringingly. Taking proactive measures to safeguard your intellectual property
rights builds a strong foundation for continued growth and expansion in the
Indian market. Establishing Credibility and Trust.
In India, building confidence and trust is crucial for every business. By
registering your business name as a trademark, you show clients, partners, and
rivals that you take your brand seriously. This polished approach gives your
stakeholders confidence and distinguishes you as a trustworthy and respectable
player in the industry.
A trademark for your business name that is registered in India demonstrates your
dedication to excellence and trustworthiness. Consumers are more likely to
believe in a brand that has taken the appropriate precautions to safeguard its
identity. This confidence can result in more devoted customers, favourable
word-of-mouth recommendations, and a long-lasting reputation[2].
Historical Background of Trademark:
Humans have been inventing and producing things from the earliest days of the
course of time. In the prehistoric era, humans made stone, jewellery, hunting
tools, vessels, and other items. When spirituality began to emerge, he created
figurines of gods and goddesses. Originally, items had marks to indicate who
owned them and hinder would-be robbers In this way, the ancient people attempted
to regulate low-quality items, and since they could instantly identify the
product's manufacturer, they penalized those who infringed. A trademark's
tendency to increase potential customers' confidence in the goods and services
increased with its level of recognition[3].
A mark served as a barrier to those with vested interests because it indicated
that the maker held the sole ownership rights over the product. In the medieval
ages, people used two main types of marks: producer's mark and merchant's mark.
The production mark demonstrated the origin, while the merchants mark signified
ownership. Guilds used production marks to regulate entry into specific trades
and ensure quality. Businesspeople and guild members first used trademarks as
marks on their products. As a result, manufacturers were held accountable for
the standard of the products they produced and for keeping their customers
satisfied.
The industrial revolution, which enabled the production and distribution of
goods on a vast scale, originated with the development of trademark laws. As
soon as a competitive market economy emerged, manufacturers started identifying
their goods with specific symbols, marks, or devices that set them apart from
similar goods produced and sold by competitors. Manufacturers furthermore began
using their trademarks to advertise their products.
Realizing the economic of
the trademarks, the competitors had an urge to copy well known trademarks or
adopt deceptively similar trademarks so as to earn profits by trading on the
reputation of another trade mark. The necessity for protecting the goodwill and
reputation of a trade mark was, therefore felt throughout worldwide which led to
the adoption of trade mark law everywhere. The first multilateral convention
i.e. Paris Convention for the protection of Industrial Property was adopted in
1883 at international level.
Historical Background of Trade Mark Law in India:
In India, The First legislation related to trade mark was the Indian Merchandise
Marks Act, 1889. Later the Trade Marks Act,1940 came in to existence. Before the
enactment of the Trade Marks Act, 1940, the disputes or problems, specially
relating to infringement of trademarks or passing off were decided under the
section 54 of the Specific Relief Act, 1877. The registration problems or issues
were solved by obtaining a declaration of ownership of a trade mark under the
Indian Registration Act,1908. The Trade Marks Act, 1940 introduced the procedure
of registration of trademarks and provide legal protection to registered
trademarks.
In 1958, the Trade Merchandise Marks Act was adopted and which repealed the
Indian Merchandise Act, 1889 and the Trade Marks Act,1940. The Trade Merchandise
Act, 1958 performed well up to four decades. But later, the act was needed to
review in the view of the development of trades, commercial practices, growth of
globalization of trade and industry, the need to promote investment flows and
transfer of technology, need for simplification and harmonization of trade mark
management systems and to give importance to judicial decisions[4].
The Trade Marks Act, 1999 was adopted and which came into force on September 15,
2003. A major change was brought by this act. This new act was significant as it
aimed to bring India's Trademark Laws in line with international standards,
especially the Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPS), and also to make India as a part of global intellectual property
administration.
The 1999 act was about key provisions relating to trade mark registration,
enforcement, and protection against infringement, establishing a strong legal
frame work for trademark protection in India. From time to time, the trademarks
regulations have been modified, for making them more efficient and accessible.
Meaning And Definition Of Trade Mark
- General Meaning: A trade mark is a sign capable of distinguishing the goods or services produced or provided by one manufacturer from those of other manufacturers. A trade mark comprises any word, name, symbol, configuration, device, shape of goods, packaging, combination of colours, or any combination thereof which one adopts and uses to identify and distinguish one's goods and services from those of others.
- Example: Samsung, Amazon, Nike, HP, Coca-Cola, McDonald's, etc.
- Legal Definition: According to Section 2(1)(zb) of the Trademarks Act, 1999, "trade mark" means: a mark capable of being represented graphically and that can be used to identify the goods or services of one person from those of others and may include the shape of goods, their packaging, and combination of colours:
- Referring to Chapter XII (apart from section 107), a registered trade mark or a mark used for goods or services with the purpose of indication, or to indicate an association in the course of trade between the goods or services, as appropriate, and another person with the right to use the mark as proprietor.
- Referring to other sections of this Act, a mark that is used or intended to be used in connection with goods or services to show or illustrate an association in the course of trade between the goods or services, as relevant, and a person who has the right to use the mark—either as the owner or as a permitted user—whether the mark bears their name or not, including certification trademarks or collective marks.
Essential Features Of Trade Mark
- It should be a mark
- Graphical representation
- It should be for goods and services
- It should be capable of distinguishing the goods or services of one person from those of others.
Functions Of Trade Mark
- Identifies and distinguishes the goods of one person from those of others (Identification).
- It signifies that all goods which have a particular trade mark come from a single source (Source).
- It indicates the quality of the goods (Quality).
- It acts as a main element in advertising and selling the goods (Advertising).
Types Of Trade Marks
- The trade mark is mainly of two types:
- Conventional Trademark
- Non-Conventional Trademark
- Conventional Trademark: Marks represented by words, letters, numerals, pictures, devices, etc.
- Device: A pictorial representation.
Example: Apple logo = a bitten apple, Samsung logo = a horizontal oval shape.
- Brand: Refers to symbols branded on goods.
Example: Nike = its Swoosh logo.
- Label: A composite mark containing various features including devices and words, usually printed on paper that can be attached to the goods themselves or their containers.
Examples: Amul = known for its dairy products, features a distinctive label including logo, name, and various design elements, especially the mascot, the "Amul Girl".
- Name: An individual (including surname), firm, or company, including any abbreviation or domain name.
Example: Name: Microsoft, Abbreviation: MS, Domain Name: microsoft.com.
- Signature: Signature of an individual.
Example: Signature of the proprietor of a business.
- Word, letter, and numeral: A mark may consist of a combination of them.
Example: Coca-Cola, McDonald's, etc.
- Packaging: Includes any case, box, container, covering, vessel, casket, bottle, wrapper, etc.
Example: Shape of the Coca-Cola bottle, Packing of Milky Bar Chocolate, etc.
- Service Mark: A distinctive sign that identifies and protects services rather than goods.
Example: FedEx = protected for its courier and logistics services.
- Collective Marks: Owned by an association whose members use them to identify themselves with a certain level of quality or requirements set by the association.
Example: Associations representing accountants, engineers, or architects.
- Certification Marks: Trademarks that signify goods or services meet certain standards or have special qualities set by a certifying organization.
Example: "Organic Label" for products meeting organic farming standards.
- Non-Conventional Trademark: Types include:
- Colour Marks: Trademarks containing a specific colour or combination of colours.
Example: Red colour of Coca-Cola, Yellow Colour of Maggie, Bluish Purple of Cadbury.
- Sound Marks: Trademarks containing specific sounds.
Example: MGM Lions roar, Yahoo! Yodel, Netflix's Tuning Sound.
- Scent Marks: Trademarks containing specific scents.
Example: Scent of Victoria's Secret, Dutch's Company tennis ball.
- Shape Marks: Trademarks containing specific shapes.
Example: KitKat Bar, Hershey's Kiss Chocolate, Starbucks Coffee Cup.
Objectives Of Trademark Law
- The Trademark Law has two main important purposes:
- To protect the public from confusion and deception by identifying the source or origin of particular goods or services to distinguish them from those of others.
- To protect the Trademark owner's trade, business, and goodwill associated with their trademark.
- In Cadbury India Limited v. Neeraj Food Products, the Delhi High Court held that the purpose of trademark law is to protect traders and consumers against dishonest adoption of trademarks by others to capitalize on the reputation and goodwill attached to them.
The Trademarks Act, 1999
- The Trade Marks Act, 1999 is the main legislation governing trademarks in India.
- Objectives of the Act:
- To provide registration, protection, and enforcement of trademarks in India.
- To prevent the use of fraudulent or deceptive marks.
- Definition of Trade Mark
- Types of Marks
- Registration Process
- Duration and Renewal
- Rights of Trade Mark Owners
- Infringement and Remedies
- It contains 13 chapters and 159 sections.
- Classification of Trade Marks: Products = (1-34) classes, Services = (35-45) classes.
- Importance of the Act: The Trade Marks Act, 1999 plays an important role in protecting brand identity, promoting fair competition, and providing a legal framework for resolving trademark disputes in India.
International Treaties And Agreements
- TRIPS Provisions:
- The TRIPS Agreement sets minimum standards for the protection of trademarks.
- It emphasizes the need for effective enforcement measures and procedures for trademark protection.
- TRIPS Article 21 permits authorities to regulate the licensing and sale of trademarks, prohibiting compulsory licensing.
- Madrid Protocol:
- This protocol provides a mechanism for the international registration of trademarks, allowing owners to seek protection in multiple countries through a single application.
- India became a member of the Madrid Protocol in 2013, facilitating simpler international trademark registration.
Registration Process
Under The Trade Marks Act
- Application
- Examination
- Advertisement
- Opposition
- Registration
- Renewal
Challenges In Registration Of Trademark:
- Grounds for Challenges:
- Absolute Ground for Refusal and Relative Ground for Refusal
- Lack of Distinctiveness
- Prior Conflicts with Existing Registrations Marks
- Public Deceptiveness
- Use of Commonly Used Symbols or Terms
- Misleading Geographical Terms
- Opposition by Third Parties
- Lack of Use of Trademark
- Similar to Well-Known Trademarks
- Generic Terms
- Lack of Clear Representation
- Absolute Ground for Refusal:
- Section 9 of the Trademarks Act, 1999: It addresses issues resulting mostly from the mark's inherent traits or nature rather than external factors. The main aim of this section is to protect the interest of the public at large rather than any particular third party.
- Relative Ground for Refusal:
- Section 11 of the Trademarks Act, 1999: This ground of refusal deals with external issues like the existence of a similar trademark that is already registered or applied for registration by third parties.
- Lack of Distinctiveness:
- Section 9(1)(a) of the Trademarks Act, 1999: States that any trademark devoid of any distinctive character cannot distinguish the goods or services of one person from those of another.
- A trademark must distinguish the goods or services from those of others. Marks that are merely descriptive cannot be registered as they do not distinguish goods or services and only describe them.
- If it fails to demonstrate distinctiveness, it limits the trademark's ability to identify the source of goods or services, leading to weaker brand identity and difficulty in enforcing trademark rights.
- Example: "Fresh Milk" for milk products would be rejected as it merely describes the products and does not distinguish them from others.
- Prior Conflicts with Existing Registration Marks:
- Section 11(1) of the Trademarks Act, 1999: States that a trademark cannot be registered if:
- There is an earlier registered trademark or application with a filing date that is earlier.
- There is an international registration or convention application with an earlier application date.
- The trademark is similar to an earlier trademark.
- There is a likelihood of confusion for the public.
- There is a likelihood of association with the earlier trademark.
- Example: An application for "Zomato" in the cloth category may lead to conflict with an already existing registration in the food service category.
- Public Deceptiveness:
- Section 9(2) of the Trademarks Act, 1999: States that a mark cannot be registered if it is of such nature as to deceive or cause confusion to the public.
- Example: If a mark is claiming "100% fresh and organic" but is found to contain preservatives, it would be rejected for misleading the public.
- Use of Commonly Used Symbols or Terms:
- Section 9(1)(c) of the Trademarks Act, 1999: States that trademarks consisting exclusively of marks or indications customary in the current language cannot be registered.
- Example: A mark like "100% Top Brand Quality" is likely to be rejected for being too generic.
- Misleading Geographical Terms:
- Section 9(1)(b) of the Trademarks Act, 1999: States that trademarks consisting exclusively of marks or indications that designate the geographical origin of the goods or services cannot be registered.
- Example: Using "Araku Coffee" for coffee products other than the original "Araku Coffee" can mislead the public.
- Opposition by Third Parties:
- Section 21 of the Trademarks Act, 1999: Allows any interested third party to file an opposition application against a trademark application during the publication phase.
- Example: An individual or company may oppose a similar mark that might confuse consumers.
- Non-Use of Trademark:
- Section 47 of the Trademarks Act, 1999: States that if a trademark is not used for five consecutive years, it can be removed from the registry.
- Example: If an applicant cannot demonstrate active use of their mark, it may be removed from the register.
- Similar to Well-Known Trademarks:
- Section 2(1)(zg) of the Trademarks Act, 1999: Defines a well-known trademark.
- Example: A mark resembling "McDonalds" can be rejected as it is a well-known trademark.
- Generic Terms:
- Section 9 of the Trademarks Act, 1999: States that generic terms used as trademarks cannot be registered.
- Example: Using the term "Computer" for computer devices will be considered generic and rejected.
- Lack of Clear Representation:
- Rule 26(4) of the Trademarks Rule, 2017: Describes the need for a clear representation of a trademark.
- Clear representation of a mark is important for the examination and registration of a trademark.
Infringement Of A Trademark:
- Chapter IV, Section 29 of the Trademarks Act, 1999 deals with the infringement of a trademark.
Challenges Relating To Trademark Infringement:
- Grounds for challenges:
- (i) Proving Infringement
- (ii) Similarity of Marks
- (iii) Prior Use Defense
- (iv) Descriptive Use of Marks
- (v) Dilution of Marks
- (vi) Defensive Registration
Remedies For Infringement Of Trademarks:
- Under The Trademarks Act, 1999, remedies for infringement of trademarks are available for both registered and unregistered trademarks.
- Section 29 and 30 of the Trademarks Act, 1999 deals with the infringement of trademarks.
- Remedies for Registered Trademarks:
- Ø Civil Remedies: Order 39 Rule 1 and 2 of the Civil Procedure Code (CPC), Section 135 of the Trademarks Act, 1999
- Temporary Injunction and Permanent Injunction
- Damages
- Account of Profit
- Destruction of goods using the infringing marks
- Cost of legal proceedings
- Ø Criminal Remedies: Section 103, 104, and 105 of the Trademarks Act, 1999 - states penalty for the infringement of trademark.
- Remedies for Non-Registered Trademarks:
- Ø Passing Off: Section 134 of the Trademarks Act, 1999
- It is a Common Law Remedy for Unregistered Trademarks.
Case Laws
Bajaj Electricals Limited Vs Gourav Bajaj And Anr (2020)
- Facts:
- Bajaj Electricals filed a suit against Gourav Bajaj, an individual from Punjab, under Section 29(2) of the Trademarks Act, 1999, regarding infringement of registered trademarks.
- The suit alleges that Gourav Bajaj had infringed the trademark by passing off goods under the Bajaj Brand Name.
- Gourav Bajaj operates two retail electrical appliance shops in Abohar, Punjab, under the brand names "APNA BAJA STORE" and "BAJA EXCELLENT" and a website, www.apnabajajstore.com.
- Bajaj Electricals argues that the tradename "BAJAJ" is a well-known registered trademark, as declared in the case of Bajaj Electricals Limited v. Metals & Allied Products and Anr. AIR 1988.
- Issues:
- Ø The main issue is about Trademark Infringement and Unfair Competition.
- Ø Whether Gourav Bajaj's use of a similar trademark or tradename causes confusion among consumers regarding the origin of goods or services?
- Arguments By Plaintiff: Bajaj Electricals claims that Gourav Bajaj's use of the tradename "BAJAJ" is an act of unfair competition and seeks damages and injunctions to prevent further use of the trademark.
- Arguments By Defendant: Gourav Bajaj argues that his use of the name is coincidental and distinct from Bajaj Electricals, claiming no intention to mislead customers.
- Court Analysis: The Court ruled in favor of Bajaj Electricals, granting an injunction against Gourav Bajaj, emphasizing the protection of well-known trademarks.
Puma Se V. Mr. Vikas Jindal (2018)
- Facts:
- Puma Se, a global sports footwear brand, filed a suit for a permanent injunction against Mr. Vikas Jindal for trademark infringement and passing off.
- Mr. Vikas Jindal used a similar trademark and logo of "PUMA" in connection with his business related to sports footwear.
- The plaintiff argued that the defendant's actions misrepresent and cause consumer confusion about the origin of the products.
- Issues:
- Ø The main issue revolves around trademark infringement, passing off, and consumer confusion about the origin of the products.
- Ø Whether Mr. Vikas Jindal's use of a similar mark constitutes trademark infringement and passing off under the Trademarks Act, 1999?
- Arguments by Plaintiff: The plaintiff claimed that the use of the "PUMA" name and logo by the defendant leads to customer confusion and damages the brand's reputation.
- Arguments by Defendant: The defendant argued that his mark was distinct and that there was no intention to mislead consumers.
- Court Analysis: The court ruled in favor of PUMA SE, granting an ex-parte permanent injunction against Mr. Vikas Jindal and awarded nominal damages of Rs. 50,000.
Conclusion
The Enforcement of the Trademarks Act, 1999, in India is pivotal for protecting
IP rights, promoting fair competition, and safeguarding consumers interest
against confusion but it also faces several challenges like awareness and
understanding, legal complexity, enforcement mechanisms and counterfeiting and
piracy etc.
The main issue is the lack of awareness about trademark rights among businesses
and consumers which often leads to unintentional infringements and legal
disputes. In addition, the legal framework governing trademarks can be complex
and difficult specially for small businesses and start up's putting off them
from seeking the necessary protections. Delay in judicial processes and
insufficient resources for implementations.
To enhance the effectiveness of the Trademarks Act, 1999 it is important to
improve public awareness, well organised legal procedures etc. Collaboration
among the government, businesses and legal entities are crucial to strengthen
enforcement mechanisms and ensure protection of trademarks which will create a
healthy business environment which will encourage innovation and boost customers
confidence in the marketplace.
End Notes:
- M.M.S. Karki, Intellectual Property Rights Basic Concepts, p.no.165 (Alantic Publishers And Distributers (P) LTD), (2009).
- Dr. B.L. Wadehra, Law Relating to Intellectual Property, p.no. 132, (Universal Law Publishing Co. NEW DELHI- INDIA, 5th Edition) (2011).
- Surashis Sarkar, "History And Evolution Of Trade Marks In India", Volume: 6, Worldwide Journals, p.no.735, 2016.
- Dr. V.K. Ahuja, Law Relating to Intellectual Property Rights, p.no. 262-263, (Lexis Nexis, 3rd Edition), (2017).
- The Trademarks Act 1999, India, available at https://www.indiacode.nic.in/handle (last visited on August 31, 2024).
- Dr. V.K. Ahuja, Law Relating to Intellectual Property Rights, p.no. 262, (Lexis Nexis, 3rd Edition), (2017).
- M.M.S. Karki, Intellectual Property Rights Basic Concepts, p.no.167 (Alantic Publishers And Distributers (P) LTD), (2009).
- Cadbury India Limited And Ors. vs Neeraj Food Products, 142(2007) DLT724, MIPR2007(2)269, 2007(35) PTC95(DEL).
- World Trade Organization, available at https://www.wto.org/english/tratop_e/trips_e/ta_docs_e/modules3_e.pdf (last visited on September 5, 2024).
- World Intellectual Property Organization (WIPO), available at https://www.wipo.int/web/madrid-system (last visited on September 10, 2024).
- India Code, available at https://www.indiacode.nic.in/show-data?actid=AC_CEN_11_60_00004_199947_1517807323972§ionId=16794§ionno=9&orderno=9 (last visited on September 10, 2024).
- Indian Kannon, available at https://indiankanoon.org/doc/326823/#:~:text=(2)A mark shall not, contains scandalous or obscene matter%3B (last visited on September 12, 2024).
- India Code, available at https://www.indiacode.nic.in/show-data? (last visited on September 13, 2024).
- International Trademark Association, available at https://www.inta.org/fact-sheets/fair-use-of-trademarks-intended-for-a-non-legal-audience/ (last visited on September 15, 2024).
- Indian Kannon, available at https://indiankanoon.org/doc/1881111/ (last visited on September 16, 2024).
- Bajaj Electricals Limited Vs Gourav Bajaj And Anr 2020, (82) PTC 40 (Bom).
- Puma SE v. Vikas Jindal & Anr., CS(COMM) 55/2018.
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