Do I need to register a trademark license?

Legal Position on Registration

  • Registration of a trademark license is not mandatory under the Trade Marks Act, 1999.
  • However, it is strongly recommended to register the license with the Trade Marks Registry.
  • An unregistered license is still legally valid as a contract between the licensor and licensee.
  • Registration provides official recognition of the licensee’s right to use the trademark.

Form and Procedure

  • To register the license, the licensor or licensee must file Form TM-M with the Trade Marks Registry.
  • The application must include a copy of the trademark license agreement and relevant details of the parties.
  • A Power of Attorney (Form TM-48) is required if the application is filed through an agent.
  • A government fee is applicable depending on the type and number of trademarks involved.

Advantages of Registration

  • A registered license provides legal standing to the licensee in enforcement proceedings.
  • It helps prove authorized use, which can protect the mark from cancellation due to non-use.
  • It strengthens the licensor’s ability to control and monitor use of the trademark.
  • It enhances the transparency and credibility of the license relationship in commercial dealings.

Consequences of Non-Registration

  • An unregistered licensee cannot initiate infringement proceedings in their own name.
  • The licensor may face difficulty proving use of the trademark through the licensee.
  • Risk of disputes or misuse may increase without formal recognition of the arrangement.
  • It may weaken the enforcement of quality control or contractual provisions in court.

Best Practice Recommendation

  • It is advisable to always register the license with the Trade Marks Registry for legal security.
  • Ensure the agreement is in writing, properly executed, and clearly defines all terms.
  • Registration should be done promptly after execution of the license agreement.
  • Legal guidance can ensure compliance with procedural and documentation requirements.

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