Trade Marks Act, 1999
40. Restriction on assignment or transmission
where multiple exclusive rights would be created.-
(1) Notwithstanding anything in sections 38
and 39, a trade mark shall not be assignable or transmissible in case in which
as a result of the assignment or transmission there would in the circumstance
subsist, whether under this Act or any other law, exclusive rights in more than
one of the persons concerned to the use, in relation to-
(a) same goods or
services
(b) same description
of goods or services
(c) goods or services
or description of goods or services which are associated with each other.
Of trade marks nearly resembling each other or
of identical trade mark, if having regard to the similarly of the goods and
services and to the similarity of the trade marks, the use of the trade marks
in exercise of those rights would be likely to deceive or cause confusion.
Provided that an assignment or transmission
shall not be deemed to be invalid under this sub-section if the exclusive
rights subsisting as a result thereof in the persons concerned respectively
are, having regard to limitations imposed thereon, such as not to be
exercisable by two or more of those persons in relation to gods to be sold, or
otherwise traded in, within India otherwise than for export there from, or in
relation to good to be exported to the same market outside India or in relation
to services for use at any place in India or any place outside India in
relation to services available for acceptance in India.
(2) The proprietor of a registered trade mark
who proposes to against it may submit to the Registrar in the prescribed manner
a statement of case setting out the circumstances and the Registrar may issue
to him a certificate stating whether, having regard to the similarity of the
goods or services and of the trade marks referred to in the case, the proposed
assignment would or would not be invalid under sub-section (1), and a
certificate so issued shall, subject to appeal and unless it is shown that the
certificate was obtained by fraud or misrepresentation, be conclusive as to the
validity or invalidity under sub-section (1) of the assignment insofar as such
validity or invalidity depends upon the facts set out in the case , but as
regards a certificate in favor of validity, only if application for the
registration under section 45 of the title of the person becoming entitled is
made within six months from the date of which the certificate is issued.