Introduction
In addition to being complicated, the trademark registration procedure takes several months. In India, there are several steps involved in registering a trademark, and following them is essential to a successful registration process. If the status of the trademark has been marked as "Abandoned", it means that the applicant has failed to follow the trademark registration process.
A trademark that is no longer in use or that the owner has purposefully or inadvertently permitted to expire is known as an abandoned trademark. This status means that the owner has completely relinquished their ownership of the trademark. Abandonment can happen when certain regulatory requirements are not fulfilled, such as failing to meet renewal deadlines or not adhering to office actions, but it does not occur when a trademark is simply not used for a few years. Consequently, the trademark loses its original protection, making it vulnerable to infringement by third parties.
Reasons for Abandonment of the Mark
According to Section 132 of the Trade Marks Act, 1999, the trademark application may get abandoned if the Registrar is of the opinion that the applicant has not followed the prosecution process for the application filed and, after giving notice of remedy and opportunity of being heard, the applicant has not corrected or amended the default. There are several reasons for trademark abandonment:
1. Non-use of the Trademark
2. Non-compliance of orders made by the Trademark Registry
3. Cancellation proceedings by the third party
4. Non-Renewal of Trademark after Expiry of Time Period of Renewal
Consequences of Abandonment of Trademark
1. The trademark is no longer protected—the applicant of the abandoned trademark loses legal protection towards it, and any other proprietor can use it anyway without any prior permission.
2. Trademark rights are not enforceable. After the trademark gets abandoned, the proprietor cannot take any legal action if any individual uses the same trademark for its business.
3. Complexity in restoration of the mark: If the application of the trademark is in the process and gets abandoned, there is no scope of restoration; a new trademark application needs to be filed by the applicant. Whereas if the registered trademark gets abandoned, the restoration of the same can be time-consuming and complex.
4. Damage of Goodwill—Goodwill contributes to the overall value of a company. If a trademark is abandoned, and the associated goodwill suffers, the company's market value may fall, making it more difficult to sell or recruit investors in the future.
Is it possible to restore the abandoned mark?
If an abandoned trademark is in the registration process, it cannot be restored in accordance with the Trade Marks Act of 1999 or the Trade Mark Regulations of 2017. It is, however, possible to submit a new trademark application for registration in India. If the registered trademark has been abandoned because it wasn't renewed, it is possible to restore it by submitting the TM-R form within a year and six months of the trademark's abandonment. According to Section 25(4) of the Trade Marks Act of 1999, there are legitimate reasons for trademark restoration in India.
In India, the application of a trademark that has been abandoned because it has not been renewed by the proprietor may apply for restoration within a year of the removal date, along with any necessary penalties or fees. If it is no longer available for restoration, the proprietor might have to submit a fresh application for trademark registration along with sufficient supporting documents to preserve the use of the trademark from the date of prior usage.
Conclusion
To minimize the risk of abandonment, companies should manage their trademarks proactively. This involves keeping a close eye on how registered trademarks are being used and practicing in order to protect trademark rights when needed. Additionally, it is essential to ensure that all trademark registrations are updated and that any modifications to goods or services are incorporated in the registrations.