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Ravi Textiles holds a registered trade mark 'RAJHANS' for cotton shirts in all of India. It proposes to assign the mark to Delhi Garments for sale of shirts only in Delhi and keep the right for the rest of India itself, so each would hold an exclusive right in different parts of India for the same goods. Under the Trade Marks Act, 1999, what is the position?

Such an assignment is barred by Section 41 because it creates exclusive rights in different parts of India for the same goods, but the Registrar may approve it on application if satisfied that the use would not be contrary to the public interest.

  1. AThe assignment is valid because territorial division always avoids confusion
  2. BThe assignment is barred, unless the Registrar, on application, is satisfied that use would not be contrary to the public interest and approves itCorrect
  3. CThe assignment is valid only if the Controller of Patents certifies it
  4. DThe assignment is barred absolutely, and the Registrar has no power to approve it

Explanation

Section 41 bars assignment creating exclusive rights in identical or nearly resembling marks for the same goods in different parts of India. The proviso lets the Registrar approve it if satisfied it is not contrary to public interest. Option D is wrong because of this proviso.

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