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

Sundaram Textiles of Chennai owns a registered trade mark for cotton shirts. It sells the mark to a buyer but keeps no goodwill of its business. Under the Trade Marks Act, 1999, what is the position of this assignment?

The assignment is valid. Section 38 of the Trade Marks Act, 1999 permits a registered trade mark to be assigned or transmitted with or without the goodwill of the business, so retaining the goodwill does not invalidate the sale.

  1. AInvalid, because a registered trade mark can be assigned only together with the goodwill of the business
  2. BValid, because a registered trade mark is assignable whether with or without goodwillCorrect
  3. CValid only if the assignment covers all goods for which the mark is registered
  4. DValid only if the Registrar issues a certificate before the sale

Explanation

Section 38 makes a registered trade mark assignable and transmissible with or without the goodwill of the business. Option A states the opposite. Option C is wrong because the mark may be assigned for some only of the goods or services. The certificate in option D is optional under section 40(2).

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