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TRADEMARKS: COMPUTER AND SOFTWARE PRODUCTS

What is a Trade Mark?

A trade mark, is an identification mark which may be a word, a device, a label, a name brand, heading or numeral etc. or a combination thereof used to enable the purchaser to distinguish one trader's goods from similar goods of other traders .A trade mark connects particular goods in the minds of people to particular manufacturer.

Computer and computer related products as also Software products can also have trademark that will distinguish the products from the other manufacturers and can be identified by the consumer to be coming from particular manufacturer. eg. Dell, IBM. Microsoft   are all trademarks of their respective manufacturers. In fact these trademarks are very popular and are registered trademarks. Use of these trademarks by others in respect of similar goods may amount to infringement and against which action can be taken.

Selection of a Trade Mark for your products.

 A trademark may be a word, letter a device or numeral label or any combination thereof.

It shall be distinctive.

If it is a word it should be easy to speak, spell and remember.

The ideal word for a trademark is an invented or coined word.

It should be short.

HOW TO PROTECT YOUR TRADEMARK

Care should be taken to keep the distinctiveness of the trademark intact by using it in correct ways in written materials, in promotions etc.

It should be used exactly the way it was designed.

 “The Trade and Merchandise Marks Act, 1958” is the legislation which deals with trademark law in India. Under this Act registration of trademark is permitted under specified classes of goods. Computer, software products are registered under class 9(nine) in India.

Once the trademark is registered it helps in action against infringement.

In case of unregistered marks and marks which are not registrable, the only form of protection is the common law remedy of passing off.

The basic difference between the protections available for registered trademarks (infringement action) and unregistered trademarks (action for passing is that the former is a statutory remedy and the latter is a common law remedy. In order to establish infringement with regard to a registered trademark, it is necessary only to establish that the infringing mark is identical or deceptively similar to the registered mark and no further proof is required. In the case of a passing off action, proving that the marks are identical or deceptively similar alone is not sufficient. The use of the mark should be likely to deceive or cause confusion. Further, in a passing off action it is necessary to prove that the use of the trademark by the defendant is likely to cause injury or damage to the plaintiff’s goodwill, whereas in an infringement suit, the use of the mark by the defendant need not cause any injury to the plaintiff.

The types of trademarks that can be registered

  1. Trademark protection is available for words, names, symbols, or devices that are capable of distinguishing the owner's goods from the goods of others.
  2. A trademark that merely describes a class of goods rather than distinguishing the trademark owner's goods from goods provided by others cannot be registered.
  3. Trademarks are not registered if:
    • The use of the mark is likely to deceive or cause confusion;
    • The use of the mark is contrary to any law or is disentitled to protection in any court of law;
    • The mark contains scandalous or obscene matter;
    • The mark contains any matter that is likely to hurt the religious sentiments of any section of the citizens of India;
    • The mark is identical or deceptively similar to a trademark already registered in respect of the same goods or goods of the same description;
    • The use of the mark is prohibited under The Emblems and Names (Prevention of Improper Use) Act, 1950.

Procedure for registration of trade marks

  • Any person/entity who claims to be the proprietor of a trademark can apply for registration. Before applying for registration, the applicant may apply for a report from the Registrar of Trademarks, as to whether the mark or one similar to it has already been registered or applied for. The applicant can also conduct private searches using the records maintained in the Registry.
  • Thereafter, the application for registration should be filed in Form TM-1, under the Trade and Merchandise Marks Rules, 1959.
  • After the application is received, the Registrar of Trademarks will examine the same and communicate any objections to the applicant. The objections normally are with regard to distinctiveness and similarity with already registered trademarks. The applicant can put forward his case in writing or at a hearing. If the submissions of the applicant are accepted, the application will be advertised in the Trademarks Journal.
  • In case any objections are received, the Registrar will conduct a hearing and give a decision regarding the same.
  • If no objections are received, the Registrar will enter the mark in the Register of Trademarks and issue a certificate of registration to the applicant. The certificate of registration is valid from the date of application for registration.

Advantages of registration of the trade mark

The exclusive right to use the trade mark in relation to the goods for which it

is registered and the right to take legal action against others who may infringe the registered trade mark or one resembling it in relation to similar goods.

Renewal of registration.

The registration of a trademark is for a period of seven years from the date of the application. Registration of the mark can be renewed for successive period of seven years.

 Assignment of trademark

A trademark is recognised as a form of property. It is therefore assignable and transferable as in the case of other forms of property. Assignment of trademark can be made by making a request on form TM-23/24 along with the deed of assignment etc to the trademark registry.

An unregistered trademark can be assigned without the goodwill of the business under the following circumstances:

At the same of assignment it is used in the same business as a registered trademark;

That both the registered and unregistered trademarks are assigned at the time and to the same person; and

That the goods in respect of which the assignment is effected are the same for both the marks.

Infringement of a trademark

A registered trademark is infringed if a person uses the same/deceptively similar mark in the course of trade, in respect to the same goods. The test for deceptive similarity is whether the defendant's use of a mark is likely to cause confusion, i.e., whether an appreciable number of reasonably prudent consumers are likely to be confused or deceived as to the source, affiliation or sponsorship of the parties and their goods and services.

Reliefs that the court may grant in an infringement suit are:

  • Injunction, restraining the further use of the trademark;
  • Damages or an account of profits; and
  • An order for delivery of the infringing labels and marks for destruction.

 Service marks

Service marks are marks used by people rendering various kinds of services, for eg: travel agents, finance companies, consultants etc. At present there is no provision for the registration of service marks in India, and they can only be protected by an action for passing off.

The Trade Marks Bill, 1999

It is passed by both Houses of parliament and has also received the Presidential assent is still to be notified. So far it is not in effect.
Some of the important provisions under the new Act are:

·        “Trade mark” shall now include services as well. All 42 international classifications of goods will be applicable in India. Thus service providers will be able to register their service marks.

·        The period of registration has been enhanced from 7 years to 10 years.

·        “Well known trade mark” can be protected.

·        The new Act will empower courts to pass ex-parte injunction orders or other interlocutory orders for (a) discovery of documents, (b) preserving the infringing goods, documents or other evidence, and (c) restraining the offender from disposing off or dealing with his assets in a manner which may adversely affect the plaintiff’s ability to recover damages, costs or other pecuniary remedies.

·        Trademark violation is now a cognizable and non-bailable offence

·        Minimum penalties of a six-month imprisonment term and Rs. 50,000/- have now been prescribed for trademark violations. The maximum penalties have been increased from two years imprisonment to three years and a fine of Rs. 2 million.

 © Zarana Khona.                              E-mail:zarana@indiaitlaw.com

 

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