The Basic Concept of Trademark
There are many different industrial sectors running in an economy like Agriculture, Health, Tourism, Professional Services, Fashion Industry, Communication, and so on. There is the number of business entities working in each sector. Business Entities working in the same industry with similar products or services consider themselves competitors and they need to attract customers by providing much better products and services. Here comes the importance of the unique identification of a business entity, its products, and services.
It is a common practice worldwide that people or business entities try to copy or replicate successful or popular business ideas, products, and services. For example, Mobile phone industry, there are numbers of players in this industry and the products they offer are quite similar. However, Apple I-phone and Samsung own the major share of the market. It is also easy to identify their product like Phone with a logo of apple that is partly bitten, and Samsung with the logo of SAMSUNG of a specific font.
The concept of intellectual property was introduced in order to preserve the unique identity of a business entity, its products, and its services. One of such concepts is Trademark, which helps business to maintain their identity in the competitive business world.
What is Trademark?
A trademark is a unique identification, can be a symbol, a name, or a text that the business entity chooses as the identity of its business as a whole or for any of its products and services. Once legally trademarked, such symbol, mark, name, or text cannot be used by any other person or business entity. For example, the ‘Unilever’ trademark represents Unilever Nepal Limited (a company) while there is the number of products that are separately trademarked.
A registered trademark is intellectual property or intangible asset for a business. The main purpose of registering a trademark is to prevent others from using one’s product without their consent and authorization. In absence of a trademark registered under the competent authority, a person or a business entity cannot get any kind of legal protection. So, trademark registration provides the right to sue anyone trying to copy, replicate or sell the registered trademark without the consent of the owner.
What can be registered as a Trademark?
Product/Business Name
Register product names like Apple's iPod, company names like Bajaj, and abbreviations like BMW as trademarks for legal protection.
Logo/Symbol
Trademarking logos is a common practice to protect brand identity. Logos differentiate businesses from their competitors.
Business Tagline
Distinct taglines can be trademarked to protect a business's identity and showcase its mission, like Nike's "Just do it" tagline.
Shapes and Others
Business can also trademark particular product's shape, color, scent, certification, patterns, packaging and many more!
Why should I register a Trademark?
If you don’t register your trademark, then someone else can. A business will grow exponentially only when it establishes a strong brand image. Just imagine, if someone senses the potential of your business and uses your trademark claiming to be the original, then this would disrupt your growth and pull you into an unnecessary legal battle, putting your business, products, or services at risk. With your brand registered, you are within your rights to take action against those who attempt to register conflicting trademarks, or operate with conflicting brands.
Following are some of the benefits listed out:
1. Protects the legal ownership of Trademark
In Nepal, trademark registration is mandatory for acquiring protection over any trademark. Trademark is your business’s identity so having one registered will protect you against anyone trying to steal your trademark or use a similar conflicting trademark for themselves. Non-registration will restrict your rights over the trademark and claim for compensation in case of infringement.
2. Establish credibility and image
In today’s world, with many choices available in the market, customers are becoming brand conscious, and trademark is how customer identifies a product. Customers’ loyalty can be affected when similar products with hard-to-differentiate trademarks are available in the market. Registering a trademark will not only help your business to increase your visibility and market presence but also restrict competitors to use similar or conflicting trademarks in their products.
3. Increase the Brand Value
Trademark is an intangible asset for the reason that it represents the brand image of the business that influences the customer and ultimately enhances the market value of the business. Like other assets, a trademark can also be bought, sold, and licensed to expand the business. The more b brand reputation grows, the more valuable your business will be. Increasing the brand value will help in the expansion of business from one region to another or from one industry to another.
4. Better Investment and Partnership
Startups or any growing business should be able to convince investors or collaborating partners that they have the potential to be successful. For a business entity that believes they have better products and services, trademark registration gives a sense of security regarding the brand value and customer loyalty. So, registering a trademark, popular with customers, can help businesses attract potential partnerships or cobranding deals.
When to Register Trademark?
To reiterate, a trademark is any symbol, logo, text, or name that helps identify a business entity, its products, or services different from any other business entity, products, or services. Every business has its own trademark acting as its identity. Businesses can register trademarks at the following points time:
1. After Business Registration
It is always a better option to secure your trademark at the start of business operation, especially when you believe your business or products have the potential to be successful in the short run. This helps you and your investor feel secure about the intellectual property and not worry about the potential infringement.
2. When products become popular
It might be okay if you have not registered your trademark at the start of the business because the business is new and not many people know about it. But when your business starts to grow and your product becomes popular among customers, without any further delay, you should have your trademark registered with the authority. Otherwise, you are simply letting others enjoy your popularity and customer base.
3. Launching new products
Every product has its name and people remember the product by its name. for example coca-cola, this is the most common cold drink. Imagine if any other company could name their cold drink coca-cola, this would collapse the market share of this cold drink giant. So, if your business is producing or launching a new product in the market, make sure you register your trademark to avoid identity theft.
Trademark Registration in Nepal
A. Where to register a trademark?
The Department of Industry (DOI) which falls under the Ministry of Industry is the regulatory authority to register a Trademark in Nepal. DOI is responsible to inspect, supervise, and regulate trademark registration. Protection and Enforcement of trademarks are governed by the Patent, Design and Trademark Act, 1965 (PDTA).
B. How to Register Trademark in Nepal?
Registration process can be categorized into following four steps:
Step 1: Submission of Application in DOI
A Business Entity should apply an application in the prescribed form to DOI for registration.
Along with this application, the following documents should also be submitted:
- Copy of Company registration documents
- Copy of PAN or VAT registration certificate.
- Tax clearance certificate of the last fiscal year.
- 4 copies of the trademark label (logo/ text/ name/ image) that is to be registered.
- Letter of Power of Attorney
- Payment Voucher showing payment of registration fee.
- If it is for foreign trademark registration, additional foreign registration is required.
Step 2: Preliminary examination of the application by DOI
On submission of documents by the applicant, the department verifies the authenticity and completeness of documents. It also checks whether the trademark being applied is conflicting with respect to other registered trademarks or the law governing the trademark registration. Department holds the right to accept or refuse the application subject to the provisions of the Act.
Step 3: Publication of Trademark in the Industrial Property Bulletin (IP Bulletin)
After conducting a preliminary examination, if no violation of any law or provision is found, the department shall publish the applied trademark in an IP Bulletin. After such publication, the public is invited to oppose the registration of such trademark citing reasons consistent with the provisions of governing law. Such opposition should be filed within 90 days of publication in the IP Bulletin.
There are many different industrial sectors running in an economy like Agriculture, Health, Tourism, Professional Services, Fashion Industry, Communication, and so on. There is the number of business entities working in each sector. Business Entities working in the same industry with similar products or services consider themselves competitors and they need to attract customers by providing much better products and services. Here comes the importance of the unique identification of a business entity, its products, and services.
Step 4: Registration of Trademark
If no opposition is filed, the department shall register the trademark and issue the registration certificate. In Nepal’s context, registering a trademark takes about nine months to 2 years, with a validity of 7 years from the registration date.
C. What is a Trademark Class?
Nepal follows NICE Classification for the registration of Trademarks. These classifications include every type of product as well as service. There are 45 classes in a total of which class 1-34 covers various products whereas class 35-45 covers services. Trademarks can be registered only using one or many of these classes. If any business has products or services which fall under multiple classes, then separate registration in each of those classes is mandatory to safeguard every aspect of the business.
Some examples of NICE Classes:
- Class 1: Industrial Products, Agriculture & Photography
- Class 34: Tobacco-related products & Matchboxes
- Class 35: Advertisement, Management services & Office Operations
- Class 45: Social Welfare, Security for individuals & properties
D. When to renew Trademark?
Once registered, the trademark shall remain valid for seven years from the registration date. Trademark needs to be renewed within 35 days of expiry. If not renewed within this period, it can be renewed within six months from the expiry of the above 35 days, but the penalty of Rs. 1000 will be charged for delay in renewal. If the renewal is not made within the given time, the registration will be canceled, and the owner can no longer claim legal rights over the canceled trademark.
E. Can Application to register a Trademark be refused?
The Department of Industry is the legal authority responsible to register trademarks in Nepal. The provisions of registration are governed by the Patent, Design and Trademark Act, 1965 (PDTA). As per the provisions of the Act, the department can reject the registration of a trademark if such trademark:
- is deemed to have an adverse effect on the reputation, goodwill, or trademark of any individual or institution,
- adversely affects the wellbeing, morale of people in general or the national interest,
- has already been registered by any other person.
- is contrary to the principle, norms, and international conventions of industrial property.
Documents required for Trademark Registration
- Application for Trademark Registration
- Bill of the sum paid for the registration of a trademark.
- Four copies of the trademark that is to be registered.
- Company registration documents and VAT/PAN number of the company willing to register.
- Details of the applicant (Status, applicant’s address, or company applying for trademark registration).
- Tax clearance certificate of the applicant.
- Copy of Power of Attorney
Conditions of Refusal of Trademark Registration
The Patient, Design and Trademark Act, 1965 (PDTA) has mentioned specific grounds under which the registration of a trademark can be rejected:
- If the trademark is deemed to hurt the dignity of any individual or institution,
- If such a trademark harms the well-being and morale of people in general or in the national interest,
- If such trademark affects the goodwill of trademark of any other person, or
- If such trademark has already been registered in the other person’s name.
- The trademark is contrary to industrial property principles, norms, and international conventions.
Why should I register a Trademark?
01. Protecting your Legal Ownership of Trademark
In Nepal, trademark registration is mandatory for acquiring protection over any trademark. A trademark protects you against someone stealing your logo, goodwill, or other infringement upon your brand name in the market. Non-registration will restrict your rights over the trademark in case of infringement. This is the primary reason for opting for the registration of a trademark.
02. Have a better Partnership
Trademark is an essential identifier in any commercial setting as it helps distinguish your business from others and indicates the source of goods/services. It also aids as an economic tool for the business as it can attract potential partnerships or cobranding deals.
03. Establish Credibility and Image
Trademarks are an effective means of communication between the manufacturer and the customer. They can communicate emotional and intellectual attributes and provide a message about you, your business, reputation, and products. Furthermore, consumers are increasingly aware of brands, which is an incentive to take the time to secure the rights to your brand. Trademarks are often the first thing a buyer sees about a brand. So, if advertising tools are used correctly, they can create positive buzz and improve your visibility and market presence.
Trademark Registration in Nepal with Company Khata
Company Khata Pvt Ltd itself is a startup established to make corporate services easily accessible and more trustworthy. We provide registration, compliance, and tax-related services to our clients. If you are planning to register a trademark for your business in Nepal, our expert team can guide you through every step of the registration process.
- We assist our clients in trademark search
- We guide you through trademark class and selection
- We provide help with documentation and form fill-up
- We file trademark registration on your behalf after obtaining an authorization letter
- We provide you constant updates on the registration process
Fill-up the form below to start registration of Trademark with Company Khata.
FAQ regarding Trademark Registration
ट्रेडमार्क यस्तो चिन्ह हो जसले कुनै पनि व्यवसायले उत्पादन गरेको बस्तु तथा सेवालाई अन्य बस्तु वा सेवासंगको भिन्नता दर्शाउने गर्छ| यसले प्रतिस्पर्धात्मक बजारमा व्यवसायिक उत्पादनको रक्षा गर्नुको साथसाथै फरक पहिचान दिलाउन सहयोग गर्छ |
प्रतिस्पर्धात्मक बजारमा हुबहु मिल्ने डिजाइन वा चिन्हको चोरी हुनु कुनै नौलो कुरा हैन | यसमार्फत व्यवसायले विभिन्न घाटा बेहोर्नुपरेको हुन्छ| ट्रेडमार्क दर्ता पश्चात हजुरको व्यवसायले यस्ता चोरी र जथाभावी प्रयोगमा रोक लगाउन सक्छ| यसका साथै ट्रेडमार्क बहुमुल्य व्यवसायिक सम्पति पनि हो जस्तै हामी रोयल्टी वा बिक्रि गरि आयआर्जन गर्न सक्छौं|
कम्पनीको नाम र व्यापारिक चिन्ह फरक कुरा हो| कम्पनी दर्ता भएपछी यसको नामले कम्पनीको पहिचान गराउँछ जुन धेरैजसो प्रा. ली. का साथ् टुंगिन्छ र यो हजुरको कम्पनीको कानुनी नाम पनि हो| तर ट्रेडमार्क एउटा यस्तो चिन्ह हो जस्ते हजुरको उत्पादन वा सेवालाई अन्यबाट भिन्न देखाई कानुनी रुपमा सुरक्षा प्रदान गर्छ| कुनै बस्तु वा सेवाको डिजाइन तथा अन्य पक्षको संरक्षण गर्न ट्रेडमार्क दर्ता अनिवार्य छ|
पाइंदैन| नेपालमा दर्ता गरेको ट्रेडमार्क नेपालमा मात्र संरक्षित हुन्छ| अन्य देशमा पनि दर्ता गर्नुपरेमा त्यहि देशको कानुन अनुसार ट्रेडमार्क दर्ता गर्नुपर्ने हुन्छ|
® : कुनै पनि चिन्ह दर्ता भैसकेको छ भने आफ्नो चिन्हसंगै यो प्रयोग गर्न सकिन्छ,
TM: आफ्नो चिन्ह दर्ताको लागि अधिकारिक निवेदन दिइसकिएको छ तर दर्ता भैसकेको छैन भने यो प्रयोग गर्न सकिन्छ,
SM: कहिलेकाहीं सेवा चिन्हको रुपमा यसलाई प्रयोग गर्ने गरिन्छ
१. निवेदनको बखत : रु १,०००
२. दर्ताको बखत : रु ५,०००
Source: Department of Industries Nepal & IPO Nepal
