Summary: The Indian government has notified amendments to the Indian Trade Marks Act, 1999, which decriminalises minor offences and revises penalties, and also introduces an adjudicating mechanism. These amendments came into effect from 1 August 2024.
The Jan Vishwas (Amendment of Provisions) Act, 2023 ("JV Act") came about in August 2023 by the Indian government to facilitate and promote the ease of doing business in the country. The JV Act sought to amend 42 laws, including the Indian Trade Marks Act, 1999 ("the Trade Marks Act"), by omitting minor offences, decriminalizing certain kinds of offences, or revising penalties. With effect from 1 August 2024, provisions of the JV Act, in relation to the Patents Act, the Trade Marks Act,, and the Geographical Indications of Goods (Registration and Protection) Act, 1999, will come into force.
Amendments to The Trade Marks Act, 1999
The JV Act amended the Trade Marks Act by imposing penalty instead of fine and imprisonment in Section 107(2), and by altogether omitting Sections 106, 108, and 109. It also provided for mechanisms for the adjudication of all penalties (including the appointment of an adjudicating officer) as well for the appeals against the order of the adjudicating officer.
A summary of penalties as revised by the JV Act is provided below:
| S. No. | Provision | Penalty under unamended Act | Penalty/provision under amended Act |
| 1. | Section 106
Penalty for removing piece goods, etc., contrary to section 81 |
Upto 1000 rupees. | Omitted |
| 2. | Section 107 (2)
Penalty for falsely representing a trademark as registered |
Imprisonment upto three years, or with fine or with both | Lower of 0.5% of total sales or turnover, or Rs 5,00,000/- |
| 3. | Section 108
Penalty for improperly describing a place of business as connected with the Trademarks Office. |
Imprisonment upto two years, or with fine or both. | Omitted |
| 4. | Section 109
Penalty for falsification of entries in the register. |
Imprisonment upto two years, or with fine or both. | Omitted |
| 5. | Section 112A
Adjudication of penalties |
Not present | New provision empowering Registrar to appoint adjudicating officer for enquiry and imposing penalty. |
| 6. | Section 112B
Appeal |
Not present | New provision allowing appeals within 60 days against orders under S. 112A to the appellate authority (i.e., an officer at least one rank above the adjudicating officer). |
| 7. | Section 140(3)
Importer or his agent to provide information of imported goods bearing false trademarks within fourteen days. |
Penalty up to 500
(No proviso) |
Upto Rs 10,000/-
(also introduces a proviso that this penalty shall be levied and recovered by the appropriate authority under Customs Act, 1962) |
| 8. | Section 157(2)
Power of the Central government to make rules- form and particulars to be included in the application to the Appellate Board under sub-section (1) of section 97 |
— | New clauses introduced:
157(2)(xxxiiia)-the manner of holding inquiry and imposing penalty under section 112A. 157(2)(xxxiiib)-form and manner of preferring appeal under 112B (2). |
There are some key omissions, notably Sections 108 and 109, and a clear definition of the monetary penalty under Section 107, which was not present earlier. The JV Act also cleans up the Trade Marks Act by removing Section 106, which had already been rendered obsolete after its associated section 81 was omitted by the Trade Marks (Amendment) Act, 2010. Also, Section 140(3) now allows for a higher penalty, presumably intending to improve compliance in relation to imported goods suspected of bearing false trademarks.
Finally, the introduction of new provisions by way of Sections 112A and 112B are a completely new mechanism for adjudication and appeal, which was not present earlier. The manner in which these provisions will be operationalised is to be seen, as it requires the Registrar to appoint or designate adjudicating officers as well as appellate authorities. For trademark applicants, holders and their agents, this is an additional adjudicatory option in the trademarks system, but for the Trademarks Registry itself, it presents new administrative challenges and responsibilities. Transitions to new systems always have a learning curve, and all stakeholders will have to be patient till processes get ironed out.
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