Monday 14 December 2015

Rule 147- Alarming situation for CS in proposed TM Rules


                 (on the letter head or send in the mail)



Additional Secretary to the Government,
Ministry of Commerce and Inustry,
Department of Industrial Policy and Promotion,
Udyog Bhawan, New Delhi – 110011


Sub.: Objections/suggestions to the proposed Trademark Rules, 2015 dated 17th November, 2015.

Dear Sir/Madam,

This is in reference to the draft Trademark Rules, 2015 (“Draft Rules”), published by the Government of India and as shown on the website of Registrar of Patents and Trademark we would like to submit certain suggestions/observation to the said draft rules before your good office.

We are practicing as Company Secretaries and undertake the assignments for registration of trademarks on behalf of Public at Large. We also spread the knowledge and make people aware about their Intellectual Property Rights.

In reference to the draft Rules our Objections/Suggestions are as follows:

Rule 147: Exclusion of Company Secretaries to be qualified as Trademark Agent

We would like to submit before the Department that Government of India vide Standing Order bearing No. 1396, dated 23rd March, 1985 (w.e.f. 6th April, 1985) substituted Rule 148(iii) of the Trade and Merchandise Marks Rules, 1959, and inserted the provision that a Member of the Institute of Company Secretaries of India is also qualified to be registered as a trade marks agents.

Whereas, Rule 150 of the Trade Marks Rules, 2002, carried the same provisions and provides as follows:

“150. Qualifications for registration: Subject to the provisions of rule 151, a person shall be qualified to be registered as a trade marks agent if he:
(i)        is a citizen of India;
(ii)      is not less than 21 years of age;
(iii)  has passed the examination prescribed in rule 154 or is an Advocate within the meaning of the Advocates Act,1961 (25 of 1961) or is a Member of the Institute of Company Secretaries of India;
(iv)     is a graduate of any university in India or possess an equivalent qualification; and
(v)       is considered by the Registrar as a fit and proper person to be registered as a trade mark agent.”

However, in the proposed Rules the Member of the Institute of Company Secretaries of India are excluded from the provisions of qualification of Trademark Agents. Rule 147 of the Draft Rules provides as follows:


147. Qualifications for registration: Subject to the provisions of rule 148, a person shall be qualified to be registered as a trade marks agent if he:

(i)        is a citizen of India;
(ii)      is not less than 21 years of age;

(iii)  is a graduate of any university in India or possesses an equivalent qualification and has passed the examination prescribed in rule 151 or is an Advocate within the meaning of the Advocates Act,1961 (25 of 1961);
(iv)     is considered by the Registrar as a fit and proper person to be registered as a trade mark agent.”

The members of the Institute of Company Secretaries of India (“the ICSI”) are actively participating in the various fields of law very effectively and are being recognized by the Government of India and public at large as efficient legal representatives before legal authorities such as:

(i)                 Company Law Board.
(ii)               National Company Law Tribunal.
(iii)             Competition Commission of India & Competition
(iv)             Appellate Tribunal.
(v)               Securities Appellate Tribunal.
(vi)             Registrar of Companies.
(vii)           Consumer Forums.
(viii)         Telecom Disputes Settlement and Appellate Tribunal.
(ix)             Tax Authorities.

Company Secretaries are well efficient to handle Trademark registration and representation before the Trademark Authority.  Since, 1985, after getting recognition by the Government of India are actively participating for Trademark Registration and providing services to the public at large.

Our Recommendation:

We request your good office to include the Company Secretaries within the ambit of Rule 147(iii) to provide better Trademark Registration services to the public at large.

We do hereby submit our observation/recommendation on the Draft Rules for your kind perusal. We shall be glad to provide any other detail as required by your good office.

Thanks and Regards

For ..(Name of Firm)….


Signature

Date:

Place: 

Trademark - Impact of increase in fee

Trademark after fee increase - a Legal Luxury

India is a developing country and still people are unaware of the Rights related with the Intellectual properties. Once considered as the legal luxury, Trademark is now considered as the basic requirement of the Business in India. In Indian business scenario importance of the trademark is increasing but still the Small and Medium Scale entrepreneurs are yet to be aware of the importance of Trademark in business.

 As per the draft Rules the Government has proposed to increase the fee by twice for trademark registration and for physical filing the applicant is required to pay Rs. 800/- extra. Government has recently increase the trademark registration fee from Rs. 3,500/- to Rs. 4,000/-[1].

Sudden rise in the fee by double will cause negative impact in public at large and some grave consequences will be as follows:

a.      Burden of Extra fee:

Increase in fee by double (existing Rs. 4,000/- per Trademark to Rs. 8,000/- per Trademark) will cause an extra burden on public at large who are interested in registration of their mark with the Trademark Registry.

b.      Downfall in number of Registration:

Indian Trademark registry has received 202,444 Trademark Applications in comparison to the 1,880,000 Trademark Application received by the China in the year 2013.[2] In BRICS countries India stands at second position after the China, however, in international scenario India is much behind China.

This sudden increase in fee by double will demoralize the intention of people to get their mark registered.

c.      Extra burden to SME

In the diversified economy of India SME are growing rapidly and it is the obligation of government to give extra benefits and relaxation to the SME’s. A large number of small scale organizations cannot pay the increase fee i.e. Rs. 8,000/- due to which SME’s not only stop applying for registration of their mark but also fail to get their right on their hard earned Intellectual Property Right.

d.      Depriving public from getting registration

Increase in fee will deprive a mazor section of society who cannot pay Rs. 8,800/-to the Government for the registration of their mark. Entrepreneur who are at the starting stage of business will hesitate to file the trademark application due to the huge cost involved.

          
It will be in the interest of the Public that Government take the increase in fee back and do not implement the same. Increase in cost will make the trademark a legal luxury.




[1] As per Notice bearing number CG/PublicNotice/2014-15/51 dated 07th August, 2014 and consequent to the notification in the official gazette of India issued by the Ministry of Commerce and Industry (Department of Industrial Policy and Promotion) dated 01st August, 2014 (G.S.R. 523(E)).

[2] WIPO statistics database, October 2014.

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