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

Ramesh sold his registered trade mark 'RAMESH SWEETS' to Anand by a written assignment on 1 March. Anand did not apply to register his title. On 10 March, Ramesh, without disclosing the assignment, granted a conflicting interest in the mark to Bhatia, who had no knowledge of the assignment. Under the Trade Marks Act, 1999, what is the effect?

The assignment is ineffective against Bhatia. Until the assignee files an application to register his title, the assignment cannot be set up against a person who acquires a conflicting interest without knowing of it, as section 45(4) of the Trade Marks Act, 1999 provides.

  1. AThe assignment is ineffective against Bhatia, since Anand had not filed an application to register his titleCorrect
  2. BThe assignment is automatically void against all persons
  3. CThe assignment prevails over Bhatia because it is earlier in time
  4. DThe assignment is effective only if the Registrar certifies it under the statement-of-case procedure

Explanation

Section 45(4) states that until an application under sub-section (1) has been filed, the assignment is ineffective against a person acquiring a conflicting interest without knowledge of the assignment. Bhatia had no knowledge and Anand had not applied. The option favouring the earlier assignment ignores this rule.

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