Sagnik (Management Trainee) 01 March 2012

Do we have to inform dipp if we give our trade mark as colla

Greetings, recently Kingfisher became the first company to give their trademark as a collateral security in lieu of loan from Banks. I wish to know that do we have to inform Comtroller general Patenet Design & trademark (i.e is Registry of trademark) about the security? Do we have to file TM-24 ? Thank you.

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4 Replies

Rajesh Hazra (Mediator and Legal Counsel ) 01 March 2012

Dear Sagnik,

If my understanding is right we should file the Form TM- 24 before the Registry to avoid any complications in future.

Rajesh Hazra (Mediator and Legal Counsel ) 01 March 2012

Cont......

But in case of collateral security in lieu of loan from Banks, the Request to register a subsequent proprietor of a trade mark or trade marks upon devolution of title does not occur in true sense, as the title is withheld by the bank for certain period. Hence this case the need to register the change with the Registry of Trdae Marks should not arise.

(Guest)

Dear Sagnik,

TM 24 is not required to be filed in this case since the title in the asset does not transfer to the bank. The bank has the option to sell/assign the trademark for recovery of loan amount in case of non-payment. Till such a scenario comes up the ownership does not change.

Hope this helps.

Regards,

Abhinav Bhalla

B.R. Bhalla & Associates

+91 9910406711

abhinav@brbhallaassociates.com