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Trademark Rectification in India

Trademark rectification refers to the process of correcting an error or updating information in the trademark register. This may include correcting clerical mistakes, amending the owner's details, or altering the registered trademark if it has been wrongly registered. Additionally, rectification can involve removing a trademark that is not being used or has been registered in bad faith. The process can be initiated by the trademark owner or any aggrieved party who believes there is an error or misuse.

Why is Trademark Rectification Important?

Trademark rectification ensures the accuracy and integrity of the trademark register. It allows for correcting errors, which helps maintain the legal protection and enforceability of the trademark. This process also ensures that only valid trademarks remain in the register, preventing the misuse of trademarks and protecting the interests of legitimate trademark owners.

How to Apply for Trademark Rectification?

Applying for trademark rectification involves submitting a rectification application to the relevant trademark authorities. The application should specify the nature of the rectification required and provide supporting evidence for the requested changes. The authorities will review the application and decide whether to approve the rectification based on the merits of the case.

Common Grounds for Trademark Rectification

  • Clerical Errors: Corrections of typographical errors or mistakes in the trademark details.
  • Change of Ownership: Updating the register to reflect changes in the ownership of the trademark.
  • Non-Use: Removing a trademark that has not been used for a specified period
  • Bad Faith Registration: Rectifying a trademark that has been registered with malicious intent or to deceive

The Process of Trademark Rectification

Application Submission
  • Submit the rectification application to the Registrar of Trademarks.
  • The application should detail the required corrections or changes and include supporting evidence.
Review by Registrar
  • The Registrar examines the application to ensure it meets the legal requirements.
  • If necessary, the Registrar may request additional information or evidence from the applicant.
Notification to Interested Parties
  • If the rectification application is filed by an aggrieved party, the trademark owner will be notified.
  • Both parties may be asked to present their case during a hearing.
Decision and Implementation
  • Based on the evidence and arguments presented, the Registrar will make a decision.
  • If the rectification is approved, the changes are made in the trademark register.
Appeal Process
  • If either party is dissatisfied with the decision, they can appeal to the Intellectual Property Appellate Board (IPAB).

Benefits of Trademark Rectification

  • Maintaining Legal Accuracy: Ensures that the trademark register accurately reflects current information and ownership details, preventing misunderstandings and legal issues.
  • Preventing Misuse: Helps remove trademarks that are no longer in use or were registered in bad faith, thus protecting the interests of legitimate trademark owners.
  • Enhanced Legal Protection: By keeping the trademark register up to date, rectification helps maintain the enforceability of trademarks, ensuring they remain protected under the law.
  • Protecting Business Reputation: Correcting errors or discrepancies in trademark registration prevents potential damage to the business’s reputation and brand value.
  • Facilitating Clear Communication: Accurate trademark records facilitate clear communication between businesses, customers, and legal entities, reducing the risk of disputes and misunderstandings
  • Strengthening Market Position: Ensuring that trademarks are correctly registered and maintained helps strengthen a company’s market position by affirming its ownership rights and brand identity.
  • Avoiding Legal Consequences: Keeping trademark records accurate helps avoid potential legal consequences, such as disputes or fines, that may arise from incorrect or outdated information.
  • Facilitating Business Transactions: Accurate trademark records can simplify business transactions, such as mergers, acquisitions, or licensing agreements, by providing clear and reliable information about trademark ownership and status.
  • Encouraging Good Faith Practices: By rectifying trademarks that were registered with incorrect information or in bad faith, businesses are encouraged to maintain good faith practices and uphold ethical standards in their operations.
  • Enhancing Consumer Trust: Ensuring trademarks are correctly registered and maintained helps build consumer trust, as customers are more likely to trust and engage with brands that demonstrate legal and ethical integrity.

Key Considerations for Trademark Rectification

Timeliness

It's essential to act promptly when errors or issues with a trademark registration are identified. Delays can complicate the rectification process and may result in the continued existence of incorrect or misleading information in the trademark register.

Evidence and Documentation

Providing comprehensive and accurate evidence is crucial for a successful rectification application. This includes documentation that supports the need for correction or removal of the trademark in question.

Legal and Procedural Compliance

Adhering to the legal requirements and procedures set by trademark authorities is vital. This includes following specific guidelines for application submission, evidence presentation, and responding to any inquiries from the trademark office

Impact on Business Operations

Rectification of trademark errors can have significant implications for business operations, particularly in terms of brand protection and legal compliance. Ensuring that trademarks are correctly registered helps avoid potential business disruptions and legal challenges.

Conclusion

Trademark rectification is a vital process for maintaining the accuracy and integrity of trademark registrations. It ensures that trademarks remain valid and legally protected, supporting businesses in safeguarding their brand identity and market position. By addressing errors, updating information, and removing invalid trademarks, rectification contributes to a fair and transparent business environment.

Proprietorship vs Limited Liability Partnership (LLP) vs Company

Features Proprietorship Partnership LLP Company
Definition A sole proprietorship is an unregistered business entity managed by a single individual. A legal contract between multiple parties to jointly manage and run a business operation. A business type that combines aspects of a partnership and the limited liability of a corporation. A registered business where owners and shareholders have limited liability.
Ownership
  • Single individual
  • Min 2 Partners
  • Max 50 Partners
  • Designated Partners: Min 2(No upper limit)
  • Min: 1 shareholder (for a private company), 7 shareholders (for a public company)
  • Max: 200 shareholders (for a private company), no upper limit (for a public company)

For One Person Company
  • Minimum: 1 individual
  • Maximum: 1 individual
Registration Time 7-10 working days
Promoter Liability Unlimited Liability Limited Liability
Documentation
  • Partnership Deed
  • PAN card of the partnership firm
  • LLP Agreement
  • Incorporation Certificate
  • PAN card of the LLP
  • MOA
  • AOA
  • Certificate of incorporation
  • PAN card of the company
Governance No specific governing law Governed by the terms outlined in the partnership deed Governed by the LLP agreement Governed by a formal structure including a Board of Directors
Transferability Business cannot be transferred Ownership transfer requires the consent of all partners as outlined in the partnership deed. Transferable Easily Transferable for public companies. In private companies, there might be some restrictions.
Compliance Requirements
  • Income tax filing if the turnover exceeds Rs. 2.5 lakhs.
  • Must file ITR 5
  • Must file ITR 5
  • File Form 11
  • Form 8
  • MCA filing
  • Auditor's appointment
  • File ITR 6

Trademark FAQ's

What is the registration process of a company?

The registration process of a company is done under the Ministry of Corporate Affairs (MCA) in accordance with the Companies Act 2013.
  • Step 1: Apply For Director Identification Number (DIN)
  • Step 2: Apply For Trademark Certificate (DSC)
  • Step 3: Company Name Approval
  • Step 4: Company Incorporation Application Submission
  • Step 5: Get a Certificate of Incorporation

How much does it cost to register a company?

The cost of registering a company in India varies according to the number of stakeholders and size. The Cost of Incorporation of a Trademark would vary from Rs.6, 000 - to Rs. 30,000/- depending upon the following:
  • Number of Directors
  • Number of Members
  • Authorized share capital
  • Professional fees

What are the types of registration?

Company registration is mandatory in India to start any business, so fixing the business structures is crucial. In India, there are seven different types of company registration:
  • Sole Proprietorship Registration
  • One-person Company Registration
  • Partnerships Firm Registration 
  • Limited Liability Partnership (LLP) Company Registration
  • Trademark Rectification
  • Public Limited Company Registration
  • Section 8 Company Registration
 

Can NRIs or foreign national or foreign entities register a company in India?

Yes, NRIs, foreign nationals, and foreign entities can register a company and invest in India, subject to the Foreign Direct Investment norms set by the RBI. However, incorporation rules in India require for one Indian national to mandatorily be a part of the company on the Board of Directors.

How do I check the availability of names for my company?

You can use the FilingLounge company name availability search tab to search for available names in India. It is important to note that FilingLounge would just provide available choices, based on identical names already registered.

Is GST registration mandatory at this stage?

GST registration is mandatory for certain businesses. Companies dealing with e-commerce operations or any other interstate activity and companies with turnover of more than Rs. 40 Lakhs are required to obtain the same. GST registration takes just 3-5 working days with FilingLounge.

What are the compliances of a Trademark?

A company is required to maintain certain compliances once it is incorporated. An auditor needs to be appointed within 30 days and income tax filing and annual return filing need to be done every year. Apart from these, mandatory compliances like ‘Commencement of Business’ forms, and DIN eKYC also need to be done.

When is the statutory auditor to be appointed?

The Board of Directors is required to appoint a practicing Chartered Accountant within 30 days of Incorporating a Trademark.

Which Form is to be filed for the ITR filing of Trademark?

The Private Limited Companies that are registered in India have to file the ITR returns each year in Form ITR 6.

Which form is to be filed for filing the annual returns of a Company?

The companies registered in India are required to file the MCA annual return each year informs AOC 4 and MGT 7.

How many members are required to start a Trademark?

Minimum 2 number of members are required to start a Trademark which can be extended to 200 members.

How can ownership be transferred?

The ownership of a Trademark can be transferred by the way of shares.

How are the Companies taxed? What are the tax rates?

Private Limited Companies are taxed at 30% plus the surcharge and cess as applicable.

Who governs and controls the functioning of a Trademark?

The MCA and Companies Act,2013 controls the functioning of a Trademark.

What are the benefits of registering a Trademark?

There are various of registering as a Trademark like Limited Liability, Access to funding, borrowing capacity, greater capacity, easy exit, and scope of multiple opportunities.

What is authorized capital and paid-up capital?

Authorized capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorized capital can be increased any time after incorporation to issue additional shares to the shareholders.

What is limited liability protection?

Limited liability is the status of being legally responsible only for a limited amount of debts of a company. Unlike proprietorships and partnerships, the liability of the shareholders with respect to the company’s liabilities is limited.

How do I open a current account?

Once the company is incorporated, a current account needs to be opened in the name of the company for transactions. Your advisor will guide you through the process of choosing the bank that you want to open the account with and get the documents like certificate of incorporation, Memorandum and Articles of Association, board resolution, copy of PAN allotment letter, and utility bill.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

MCA Compliance

Each registered entity is required to meet its compliance duties at the close of each financial year. This generally includes auditing financial statements, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA).

Compliance For Form Due date Penalty
Commencement of Business Intimation to Registrar for Commencement of Business Within 180 days from incorporation INR 50,000 on company and INR 1,000 per day on directors for each day of default
Annual KYC of Directors DIR 3 E-KYC 30th September of every year INR 5,000 for late filing
Appointment of Auditor Form ADT 1 Within 15 days of the AGM INR 300 per day (max INR 12,000)
Financial Statements Form AOC 4 Within 30 days from the AGM INR 100 per day of default
Annual Return Form MGT 7 Within 60 days from the AGM INR 100 per day of default

All Limited Liability Partnerships (LLP) in India must file annual returns with the Ministry of Corporate Affairs (MCA). FilingLounge provides affordable services to help you keep your LLP compliant.

LLP Compliance Form Due date Penalty
Annual KYC of Directors DIR 3 KYC 30th September of every year INR 5,000 for late filing
Annual Return Form 11 May 30th every year INR 100 per day of default
Statements of Accounts and Solvency Form 8 30th October every year INR 100 per day of default (minimum penalty INR 10,000)

In addition to the filings listed above, there may be other compliance requirements relevant to LLPs. To ensure all compliance needs of your LLP are met, please seek assistance from a Filinglounge Advisor.

Entity Compliance Form Due date
Private Limited Company Annual Return MGT-7 Within 60 days from the conclusion of the AGM
Financial Statements AOC-4 Within 30 days from the conclusion of the AGM
DIR-3 KYC DIR-3 KYC 30th September every year
Return of Deposits DPT-3 30th June every year
Appointment of Auditor ADT-1 Within 15 days from the conclusion of the AGM
Income Tax Return (Non-audit case) ITR-6 31st July every year
Income Tax Return (Audit case) ITR-6 30th September every year
Annual GST Return GSTR-9 31st December of the subsequent financial year
MSME Form Form 1 (MCA) half-yearly return by 31st October (April to September), & 30th April for the period October to March every year
Limited Liability Partnership Income Tax Return (Non-audit case) ITR 5 31st July every year
Income Tax Return (Audit case) ITR 5 30th September every year
Annual Return Form 11 30th May every year
Financial Statements Form-8 30th October every year

Note : There might be extra filings needed depending on your business type and activities. Talk to a FilingLounge advisor to get the right guidance for your company's compliance.