Introduction
A trademark is a crucial asset for businesses, providing brand identity and distinguishable goods and services among competitors. Businesses build and maintain their goodwill and reputation by enduring the fierce competition in the relevant market, as an average common consumer always relates to a product based upon the satisfaction, goodwill, and reputation. Consequently, in order to portray a consumer-centric approach, businesses come together to establish themselves as a new joint entity to provide goods and services in collaboration with each other, which they're individually well known for in the market. In accordance with the basic doctrine of the trademark, it is usually owned by the single proprietor; however, a slight shift from the basic paradigm is depicted as per Section 24 of the Trade Marks Act, 1999, which allows a trademark to be owned by multiple owners. With the emergence of the new joint entity, the companies/businesses aim to provide goods and services that shall together garner reputation and goodwill based on the established market standards.
Joint Ownership of Trademark
The joint ownership of a trademark is termed as a mutual agreement between multiple parties or entities to own a trademark together. Simply, when two or more entities jointly own a trademark or come together as a single proprietor for a trademark or goods or services provided by them and entail equal rights over such trademark, they are referred to as joint ownership of a trademark.
Joint ownership witnesses the joining of the economic value of the trademark along with the balance of interest among parties with regard to the rights and obligations of the trademark.
Relevant Provision
Section 24 of the Trade Marks Act, 1999 specifically provides for the joint ownership of the Trademark and lays down the rules for the same.
Sub-section (1) prohibits in express terms that "nothing in this Act shall authorize the registration of two or more persons who use a trademark independently, or propose so to use it, as joint proprietors thereof.
However, Sub-section (2) states that in case of joint ownership, the relation between the joint owners is such that both or all the parties/entities use the trademark together, but neither of them shall be the absolute owner of the trademark. The trademark shall be registered in favour of all the parties to be held together. Parties will have the rights to use the trademark as if those rights are vested in a single person. The joint entities or parties cannot use the jointly registered trademark against each other.
Section 18 of the Act provides that either of the parties or entities while entering into Joint Ownership of a Trademark, needs a principle place of business necessarily in India.
Procedure of Registration of Trademark to be owned jointly
An application for registration of the mark by the joint owners can be made by filing the Form TM-A accompanied by the documents required. An additional category as a "joint applicant" is required to be selected for filing an application as a joint proprietor along with the details of each of the proprietors. The fees for filing a trademark application in the case of joint applicants, irrespective of the number of joint applicants, will be 9000 INR only.
Notably, the application by the joint proprietors can be made for the mark that is already in use by the joint owners, or they may propose to use it, and either of the parties of the joint ownership must have a place for their business within the territory of India, and it would be mandatory for them to have their address for service in India. Since the application for joint proprietors is considered as a single application, the remaining rules of application, oppositions, registration, and renewals will be the same as applicable to an application owned by a single entity.
Conclusion
Jointly owned trademarks can be a valuable strategy for businesses engaged in collaborations or partnerships. However, they require careful structuring, clear agreements, and consistent use to ensure legal enforceability and avoid conflicts. Section 24 of the Trade Marks Act, 1999, clearly bestows the legal framework for such ownerships, emphasizing mutual benefits and cooperation among the proprietors.
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