In India, a taker does not have a legal obligation to sub-concede the mark to third parties until it is explicitly or implicitly mentioned in the licensing agreement between the licensee and the taker. If there is a particular condition in the licensing agreement for the purchaser not to have the right to sub-concerate the mark, it contractually binds the taker to such a right. A licensing agreement between a trademark holder and a manufacturer is an official document indicating that the manufacturer of a product is authorized to manufacture the product by the company or by the person who protected it. However, the trademark holder may choose the terms of the licence for this contract. The Trademark Act 1999 refers to “attribution” and “cession” of trademarks and does not explicitly refer to “licensing.” It is therefore relevant to understand that there are some fundamental differences between the transfer and licensing of trademarks. A transfer is a permanent transfer of ownership of a trademark, while the granting of licenses is a temporary transfer from certain rights to use a trademark. In addition, unlike orders, a license may be revoked. As a result, assignments result in a change of ownership in which the assignee becomes the owner of the trademark, unlike licenses for which limited rights are transferred to the licensee for a specified period of time. A license, mortgage or other abrupt portions of a registered design are not valid unless it is written and the agreement between the parties clearly specifies the terms of the rights and obligations (section 30, Designs Act 2000). The agreement by which a mortgage or other interest is established for the registered design must be submitted to the person in charge of the processing on Form 12 within six months of the completion of the instrument or within a maximum of six months, as permitted by the person in charge of processing the application. The clerk may accept the application in full or conditionally.
Conditional reception is made when conditions/restrictions/restrictions are set for the authorized use under the licence. In the event of conditional acceptance, the Registrar will notify the applicant. The issuance of the licence must be described in detail. It includes the type of license to use the mark, which should not be transferable. All licensing issues must be noted here.