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CS Professional · Intellectual Property Rights - Law and Practice · Business Concerns in Commercializing Intellectual Property Rights

Kiran Exports owns a trade mark used only for goods exported from India. It assigns the mark in respect of the export goods to Orient Traders along with the goodwill of the export business only, not the domestic business. Under the Trade Marks Act, 1999, how is this treated for advertisement requirements?

The assignment is not deemed to be made otherwise than in connection with goodwill, because the Explanation to Section 42 covers a mark used for exported goods when the goodwill of the export business is transferred. Hence the advertisement condition does not apply.

  1. AIt is treated as an assignment without goodwill and must be advertised
  2. BIt is not deemed an assignment made otherwise than in connection with goodwill, so the advertisement condition of Section 42 does not applyCorrect
  3. CIt is invalid under Section 41
  4. DIt requires a Controller's certificate under Section 70

Explanation

The Explanation to Section 42 (b) says an assignment of a mark used for exported goods, accompanied by transfer of goodwill of the export business only, is not deemed made otherwise than in connection with goodwill. So the advertisement condition does not apply. Option A ignores this Explanation.

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