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What are penalties for trademark infringement?

Legal Framework for Infringement

  • Trademark infringement is governed by the Trade Marks Act, 1999.
  • It occurs when a person uses a registered trademark or a deceptively similar mark without authorization.
  • Infringement includes unauthorized use, imitation, counterfeiting, or passing off goods/services.
  • Both civil and criminal remedies are available to the trademark owner.

Civil Penalties and Remedies

  • The trademark owner can file a civil suit for injunction, seeking to stop the infringing activity.
  • The court may award damages or account of profits, compensating for financial loss.
  • The court may order seizure, destruction, or removal of infringing goods and materials.
  • Additional relief includes legal costs, declaratory relief, and permanent injunction.

Criminal Penalties

  • Trademark infringement is a cognizable offence under the Act.
  • Punishment includes imprisonment of not less than six months, which may extend to three years.
  • A fine of not less than ₹50,000, which may extend to ₹2,00,000, can also be imposed.
  • Offenders may face both imprisonment and fines based on the gravity of the offence.

Penalties for Falsely Applying a Trademark

  • Applying a false trademark or falsely representing a registered mark is a punishable offence.
  • Such acts attract criminal liability, even if the trademark is not registered.
  • The same penalties apply: imprisonment and fines, along with the confiscation of goods and tools.
  • Repeat offences may lead to stricter judicial scrutiny and enhanced penalties.

Preventive and Strategic Actions

  • Trademark owners should register their mark and monitor the market for unauthorized use.
  • Issuing cease and desist notices can deter infringers before legal action.
  • Customs enforcement, digital takedowns, and legal proceedings strengthen enforcement.
  • Proactive protection helps maintain the value, goodwill, and exclusivity of the brand.

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