Introduction
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Background
The case began with a trademark registration application submitted by the petitioner, Mrs. Nirmala Kabra, carrying on business as Action (India) Pharmaceuticals Division as early as June 25, 2010. They sought to register the “Breastone” trademark. Even after more than 15 years, no decision has been taken on the petition.
In 2013, the application was opposed by a competing business, Hassnar Health and Personal Care, and after adversarial proceedings, the pleadings were completed and the matter was posted for evidence in July 2017. The evidence was never taken, and never has there been a hearing or order or decision by the Registrar. Faced with this incredible delay, the petitioner sought a direction from the Rajasthan High Court to expedite a determination of the matter.
This case illustrates a systemic issue with India being one of the largest trademark-filing jurisdictions in the world, but it also has some of the slowest and most inept procedural delays to its processes. Millions of applications are pending at various stages which has made the intellectual property protection processes impotent.
Key Points
Breach of Rule 50 of the Trade Marks Rules, 2017:
The Court stated in the decision that Rule 50 sets out that the Registrar must issue hearing notices, and conclude their decision after the closing of evidence (with some limited grounds to adjourn). Rule 50 prescribes a quick decision-making process that was completely disregarded in this case, constituting a breach of a public’s statutory duty.
Unreasonable delay as a deprivation of justice:
Justice Dhand roundly held that keeping an application for registration pending for over a decade without resolution was a “clear act of a violation of natural justice.” Unreasonable delays can defeat the purpose of filing to begin with and can also create uncertainty, financial loss, and can inhibit entrepreneurial actions.
Constitutional Issue:
The Court reframed the argument using Article 21 of the Constitution and clearly stated that the right to speedy disposal stems from the fundamental right to life. The Court noted, a 15 year delay is quite simply incompatible with the guarantees made in the Constitution.
Implications for the public:
The Court was not only reflecting upon the grievance of the petitioner, but on the greater, systemic crisis that the Intellectual Property Rights (IPR) regime is presently experiencing. The judgement clearly stated that long delays diminish the public’s faith that statutory authorities are functioning properly, and it put at risk India’s position as a world leader in trademark filings.
Recent Developments
The Court made two major directions in its operative part:
direction dealing with specific case: the Registrar of Trademarks was ordered to finalize the pending application for ‘Breastone’ within three months of receipt of the High Court’s order.
direction that had precedent value: the Registrar was explicitly ordered to prepare a plan to address the backlog of trademark application cases and clear out the applications awaiting processing in accordance with Rule 50 of the 2017 Rules.
The Court specifically advocated for the need to implement simplified and speedy mechanisms to protect IPRs associated with business interests and innovation in India.
Conclusion
The judgement categorizes extended pendency as violation of natural justice and a person’s right to liberty and life under Article 21. In this way, it advances trademark registration delays from simply being a type of incompetence into something more serious – violations of legal and fundamental rights.
For the petitioner, the remedial process may finally provide some closure to the long saga of “Breastone.” For the IPR ecosystem, the judgement suggests severe delays will not be tolerated and that the Registrar of Trademarks, as directed and given time, will develop and implement a plan of action in relation to trademark approvals to live up to this responsibility. As one of the world’s top 5 jurisdictions for trademark filings, timely adjudication is not only an ethical obligation, but the maintenance of economic growth and investor trust presents an important imperative.
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WRITTEN BY __ Kondala Phani Priya
