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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Trade Marks

Arjun Appliances, a registered user of a mark owned by Bharat Electricals, wishes to sell its right to use the mark to Delta Traders. Under the Trade Marks Act, 1999, what is the position?

Arjun cannot assign the right. Section 54 provides that nothing in the Act gives a registered user any assignable or transmissible right to use the trade mark, so the sale to Delta Traders has no legal basis under the Act.

  1. AArjun may assign the right if Bharat Electricals is informed in writing
  2. BArjun may assign the right with the goodwill of its business
  3. CArjun may assign the right but only within India
  4. DArjun cannot assign it, as a registered user has no assignable or transmissible right to use the markCorrect

Explanation

Section 54 states that the Act confers on a registered user no assignable or transmissible right to use the mark. Informing the owner, adding goodwill or limiting the territory does not change this.

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