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CS Professional · Intellectual Property Rights - Law and Practice · Trademarks

Malabar Textiles owns the registered mark 'MALABAR' for sarees. It proposes to assign the mark for use only in Tamil Nadu to Chola Looms, while keeping exclusive rights for the rest of India with a nearly resembling mark for the same goods. Under the Trade Marks Act, 1999, which statement is correct?

The assignment is barred unless the Registrar approves it as not contrary to the public interest. Approval protects it from invalidity only if the application to register the assignee's title is made within six months of approval. This follows section 41 of the Trade Marks Act, 1999.

  1. AThe assignment is always valid because the territories do not overlap
  2. BThe assignment is barred unless the Registrar approves it as not contrary to the public interest and the title registration is applied for within six months of approvalCorrect
  3. CThe assignment is valid if Chola Looms pays consideration
  4. DThe assignment is barred permanently with no approval procedure

Explanation

Section 41 bars assignments that create exclusive rights in different parts of India over identical or nearly resembling marks for the same goods. The proviso lets the Registrar approve the assignment if satisfied that use would not be contrary to public interest. Protection then needs an application under section 45 within six months of approval.

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