Much awaited modification in the Trade Marks Rules, 2017
The Draft Trade Marks (1st Amendment) Rules, 2024, introduced by the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry, represent a strategic modification to the Trade Marks Rules, 2017. This regulatory endeavour functions under the jurisdiction provided by Section 157 of the Trade Marks Act, 1999 ("the Act"). These rules create a uniform procedure for resolving conflicts, carefully crafted to ensure consistency. This strengthens the Act by giving more authority to the Adjudicating Officer. The primary aim of this systematic approach is to improve and simplify the adjudication process, facilitating a smoother and more coherent management of trademark-related matters.
Amendments introduced:
Definition:
1. “Adjudicating Officer” means an offer appointed in accordance with Section 112A of the act;
2. “Appellant” means an aggrieved person who prefers an appeal before the Appellant Authority in accordance with section 112B of the act against the order of an Adjudicating Offer;
3. “Appellant Authority” means an officer appointed in accordance with section 112B of the act;
4. “Complainant” means an aggrieved person who makes a complaint before the Adjudicating officer;
Means of Communication :
All communications regarding the adjudication of penalties under the Jan Vishwas Act, 2023, shall be electronically communicated, whether through text message or email.
Adjudication of Penalties :
The amended rules introduce Chapter VII-A, outlining a framework for adjudicating penalties. Any individual can lodge a complaint under TM-D before the Registrar regarding any violation or default under Section 107[4] of the Act, which concerns false representation of a registered trademark.
Appointment of Adjudicating Officer :
Adjudicating Officer shall be deemed to be a public servant under section 21 of the Indian Penal Code, 1860. The Registrar shall appoint the Adjudicating Officer, who will have the authority to levy penalties on any individual found guilty of contravening or default under the provisions contained in Section 107 of the Act.
Allocation of Complaints to Adjudicating Officer :
Complaints shall be randomly and automatically assigned via a computerized system to the Adjudicating Officer, if more than one is appointed.
Powers of Adjudicating Officer :
The Adjudicating Officer shall possess civil court powers, including summoning witnesses and compelling the production of documents and materials.
Summary Proceedings :
1. When No Case is Established :
If the Adjudicating Officer determines that there is insufficient evidence to support the complaint, it shall be summarily dismissed. A written order shall be issued within thirty (30) days of such dismissal.
2. When a Case is Established :
If the Adjudicating Officer finds sufficient evidence to support the complaint, proceedings shall commence.
Procedure for Summary Proceedings :
i. Firstly, the alleged violator shall be served notice along with a copy of the complaint within a period of 30 days from the date of commission of alleged contravention.
ii. Secondly, upon receiving the complaint, the alleged violator shall submit a statement using Form TM-OPP within fifteen (15) days, providing relevant facts and evidence.
iii. Thirdly, an inquiry shall be conducted, with the Adjudicating Officer issuing a notice to the alleged violator to show cause.
iv. Lastly, the Adjudicating Officer shall issue a written final order within sixty (60) days.
Quantum of Compensation :
Determination of compensation under this Act shall consider factors such as gain or unfair advantage, loss to any party, the repetitive nature of the violation, and extension of time.
Conducting an Inquiry :
If deemed necessary, the Adjudicating Officer shall conduct an inquiry, providing a reasonable opportunity for the concerned party to be heard. If the party fails to appear, the inquiry may proceed in their absence.
Form and Manner of Appeal :
Any aggrieved party may appeal the decision or order of the Adjudicating Officer using Form TM-DA to the Appellate Authority within sixty (60) days of receiving the order.
Registration of Appeal :
On the receipt of an appeal, office of the Appellate Authority shall endorse the date on such appeal and shall sign such endorsement.
Disposal of Appeal by Appellate Authority :
(1) Upon accepting an appeal, the Appellate Authority must send a copy to the opposing party along with a notice, allowing them up to twenty-one days to respond. This period can be extended by another twenty-one days if the appellant provides a valid reason.
(2) Any documents submitted by the appellant to the Appellate Authority must be promptly shared with the opposing party through electronic means.
(3) The Appellate Authority must inform both parties of the appeal's hearing date, which must be at least thirty days after the notification.
(4) During the hearing, the Appellate Authority has the discretion to make any necessary orders, including adjourning the hearing to a later date, provided proper reasons are given and the prescribed fees are paid.
Upon admission of the appeal, the Appellate Authority shall serve a copy to the opposing party, who must reply within twenty-one (21) days. The Appellate Authority shall then issue a written order, which may confirm, modify, annul the previous decision, or refer the matter back for fresh adjudication.
Updated Second Schedule of Trademark Rules :
The amended rules also include:
Form TM-D for filing complaints under Section 105(1)[5] of the Act.
Form TM-OPP for submitting written statements on behalf of the opposing party.
Form TM-DA for filing appeals under Section 112B of the Act.
The proposed amendments to the Trademark Rules, 2017, aim to enhance the precision and efficiency of the adjudication process, granting greater authority to stakeholders. Additionally, these amendments seek to simplify legal complexities that may arise during the Act's practical implementation, thereby facilitating smoother and more effective trademark governance.
Objections or suggestions regarding these draft rules may be submitted to the ministry within thirty days of their publication in the official gazette.
[1] Section 157: Power to Make Rules :
This section empowers the central government to establish rules to further the objectives of the Trademarks Act, 1999, including regulations on the advertising of registration applications and opposition notices.
[2] Section 112A: Adjudication of Penalties :
This section allows for the appointment of an adjudicating officer by the Registrar to conduct inquiries and impose penalties under the Act.
[3] Section 112B: Appeal :
This section enables appeals against adjudicating officer orders under Section 112A within sixty (60) days of receipt.
[4] Section 107: Penalty for False Representation of Trademark Registration :
This section stipulates penalties for falsely representing a trademark as registered.
[5] Section 105: Enhanced Penalty for Subsequent Convictions :
This section provides for increased penalties for second and subsequent convictions under the Act.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. The views expressed in this article are solely of the authors of this article.
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