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

Sundaram Textiles Pvt Ltd, Coimbatore, sells its registered trade mark 'SUNTEX' to Kaveri Garments Ltd. The deal transfers only the mark; the business and its goodwill are retained by Sundaram. Under the Trade Marks Act, 1999, what must the assignee do for the assignment to take effect?

The assignee must apply to the Registrar for directions on advertising within six months of the assignment, extendable by up to three months in aggregate, and then advertise as directed. Without this, an assignment made without goodwill does not take effect.

  1. ANothing further, because a registered mark can always be assigned freely
  2. BApply to the Registrar for directions on advertising the assignment, and advertise it as directed, within six months of the assignment (extendable by up to three months in aggregate)Correct
  3. CApply to the Registrar within thirty days for a certificate under the multiple-rights provisions
  4. DObtain written consent of the Controller of Patents before using the mark

Explanation

Where a mark, registered or unregistered, is assigned otherwise than in connection with the goodwill of the business, the assignment does not take effect unless the assignee applies to the Registrar for advertisement directions within six months (extendable by not more than three months in aggregate) and advertises as directed. The option of doing nothing ignores this condition.

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