India: The Trademark Rules, 2017: Process made simpler, Faster, Start-up friendly but dearer

In a constructive attempt to streamline, simplify and expedite the trademark registration processes, the Trade Mark Rules, 2017 have been notified and came into effect from March 6th 2017. In consonance with the National IPR Policy, 2016, the Rules also introduce specific provisions for Start-Ups and Small Enterprises to stimulate and promote innovation and creativity among such entities.

The Salient Features of the Rules are as follows:

GENERAL:

• Definition of Start-Ups and Small Enterprise introduced.
• Number of Forms has been reduced from 74 to 8. 
• Procedures relating to registration as Registered User of trademarks have been simplified. 
• Provisions have been introduced to serve all applications, notices, statements and other documents electronically - from applicants to the Registry and vice-versa.

OFFICIAL FEES:

• Government Fee applicable for various trademark registration related activities has been simplified by reducing the number of entries to just 23. 
• Filing fee of a new application has been increased by about 125 %. (INR 9,000.00).
• Renewal fee increased close to 100% (INR 10,000.00). 
• Fee for expedited registration process increased by 100% (INR 40,000.00).
• Handling fee for Madrid Applications increased by 150% (INR 5,000.00).
• 50% discount on the new filing fee for Individuals/Start-Ups/Small Enterprise. 
• To promote e-filing, the fee for online filing has been kept 10% lower as compared to fees for physical filing.
• Fee for extra characters (beyond 500 characters) in the description of goods/services has been done away with.

EXPEDITED PROCESSING OF APPLICATIONS:

Provisions laid down for expediting the registration from filing through registration on payment of higher fees. Earlier, only examination of application could be expedited.

REPRESENTATION OF SOUND MARKS:

Sound marks applications to be also accompanied by reproduction in MP3 format (not exceeding thirty seconds’ length).

EXPEDITE OPPOSITION PROCEEDINGS:

• Provision to file counter statement to the notice of opposition as soon as it is made available online. 
• The requirement of serving a copy of opposition notice shall be dispensed with if a counterstatement has already been filed based on electronic copy of notice available online. 
• No scope for seeking extensions in case of filing evidences. 
• The number of adjournments for hearings reduced to 2 for each party and each adjournment shall not be allowed for more than 30 days.
• Mandatory costs up to INR 10,000.00 to be awarded to either the Applicant or the Opponent (depending on the case) for not contesting opposition proceedings thereafter. 

WELL-KNOWN TRADEMARKS:

• Modalities for determination of a trademark as a well-known mark have been introduced for the first time. 
• Application to be filed with an exorbitant fee of INR 1,00,000.00 per mark and only through e-filing.

VIDEO-CONFERENCING OF HEARINGS:

Provisions have been laid down to hold personal hearing through video- conferencing or other audio-visual communication devices.

RENEWAL OF REGISTRATION:

The window for renewal of registration now opens one year prior to the date of expiration as against six months under the old Rules.

EXTENSION OF TIME:

Any extension of time, as specifically allowed under the Trademarks Act, 1999, shall not exceed one month.

ASSIGNMENT OF TRADEMARKS:

• Providing a duly certified copy of original document, instrument or deed purporting to transfer the title will suffice; an original instrument or deed is no longer necessary. 
• Filing of Affidavit along with the application for recordal of assignment is no longer required. 

STATEMENT OF USE:

• All applications (except with the intent to use) shall contain a statement of use with respect to ALL goods or services mentioned in the application.
• An affidavit testifying such use (if application claimed prior user date) along with the supporting documents has to be filed.

Visibly Faster Turnarounds By Indian Trademark Registry

This morning, when I opened my inbox, one email in particular surprised me. The email contained our first ever “e-certificate” for a trademark application filed just about one year ago! In the past, such prompt action by Indian IP Offices was almost unheard of. But clearly, the technology-enabled procedural changes introduced over the past year or so have begun to bear fruit.

The issues faced by the Registry in printing and dispatching hard copy (Registration Certificates) are quite well-known. On many occasions, the certificates did not reach the intended recipients. This not only caused delay and inconvenience to stakeholders but also imposed needless cost on the Registry as well as Applicants (who had to apply for a duplicate certificate).

About a month ago, the Indian Trademark office, via its notification dated 28^th July 2016, had notified the new system of sending only e-certificates (Registration), and doing away with the century old system of sending hard copies. This was made effective from 1^st August 2016 for all trademark applications:

• published in the Trade Marks Journal on or after November 23^rd, 2015;

• where no request for amendment filed on behalf of the applicant is pending disposal;

• where Trade Mark registry’s database contains the original application;

• where no compliance requirement is pending on part of the applicant; and

• which have not been specifically prohibited for registration by the order of any court, IPAB or any competent authority.

With the adoption of the new system it appears that the Registry is taking every possible step to eliminate the root cause for delay and thus expedite the registration process and deliver on the higher standards outlined in India’s new IP Policy.

INDIAN TRADEMARKS REGISTRY ABANDONS PENDING APPLICATIONS – GIVES GRACE PERIOD TO REVIVE

The Controller General of Patents, Designs and Trademark of India (CG) vide its notification dated 4^th April 2016 has given an opportunity to all Applicants and authorised Agents of Trademark Applications which were recently abandoned by the Indian Trademark (TM) Registry to (re)submit their responses or make submissions (where response was not submitted earlier) by 30th April 2016.

This action will benefit the several thousand pending Trademark applicants whose applications were abandoned by the Indian Trademarks Registry due to lack of responses.

For the last several years, the Indian TM Registry had stopped sending Office Actions through the postal service. Instead, they uploaded them online on the TM Registry website. However, there were always delays and other issues in the process. It appears that due to discrepancies and mismanagement, several files and documents were misplaced and the TM Registry could not locate the filed responses which apparently caused a chaos at the Registry. However, instead of attempting to trace the missing documents, the Registry took the decision to simply abandon all applications where the Office Actions were issued (on/off line) and the TM Registry could not trace the responses submitted.

After much ado, the TM Registry has granted a grace period of 3 weeks (until 30th April 2016) allowing all applicants who had filed their responses to re-send copies of their responses. The same grace period also applies to those who did not submit responses because they did not receive the Office Action even though it was uploaded / sent through post. All applications that do not receive responses by 30th April 2016 shall be treated as abandoned.

On the one hand, the move to abandon the applications has been criticised widely as a sign of the Registry not holding itself accountable. On the other, it is also seen as a smart move to clear off the overload that is sometimes caused by non-serious applications.

If you or any of your clients have filed any trademark application in India, you may wish to check the status with your concerned Attorney. If it has been “abandoned”, you still have time till 30^th April 2016 to take remedial action and submit a response.

If you are a Fox Mandal client, be assured that we are checking the status of your applications and shall be reaching out to the TM Registry to take necessary actions. Also, if your application has been examined, you must send your instruction to file a response immediately so a suitable response can be drafted and filed on or before 30th April 2016.

PS: As per the latest news, as a result of several writ petitions being filed before different High Courts, on 5^th April 2016, the Delhi High Court vide its Interim order has stayed the order of CG. We await the final order and shall keep you informed.