THE TRADE AND MERCHANDISE MARKS ACT, 1958
43 OF 1958

CHAPTER X
Offences, penalties and procedure

  1. Meaning of applying trade marks and trade descriptions.
    1. A person shall be deemed to apply a trade mark or mark or trade description to goods who-
      1. applies it to the goods themselves; or
      2. applies it to any package in or with which the goods are sold, or exposed for sale, or had in possession for sale or for any purpose of trade or manufacture; or
      3. places, encloses, or annexes any goods which are sold, or exposed for sale, or had in possession for sale or for any purpose of trade or manufacture, in or with any package or other thing to which a trade mark or mark or trade description has been applied; or
      4. uses a trade mark or mark or trade description in any manner reasonably likely to lead to the belief that the goods in connection with which it is used are designated or described by that trade mark or mark or trade description; or
      5. in relation to the goods uses a trade mark or trade description in any sign, advertisement, invoice, catalogue, business letter, business paper, price list, or other commercial document, and goods are delivered to a person in pursuance of a request or order made by reference to the trade mark or trade description as so used.
    2. A trade mark or mark or trade description shall be deemed to be applied to goods whether it is woven in, impressed on, or otherwise worked into, or annexed or affixed to, the goods or to any package or other thing.
  2. Falsifying and falsely applying trade marks.
    1. A person shall be deemed to falsify a trade mark who, either,-
      1. without the assent of the proprietor of the trade mark makes that trade mark or a deceptively similar mark; or
      2. falsifies any genuine trade mark, whether by alteration, addition, effacement of otherwise.
    2. A person shall be deemed to falsely apply to goods a trade mark who, without the assent of the proprietor of the trade mark,-
      1. applies such trade mark or a deceptively similar mark, to goods or any package containing goods;
      2. uses any package bearing a mark which is identical with or deceptively similar to the trade mark of such proprietor, for the purpose of packing, filling or wrapping therein any goods other than the genuine goods of the proprietor of the trade mark.
    3. Any trade mark falsified as mentioned in sub-section (1) or falsely applied as mentioned in sub-section (2), is in this Act referred to as a false trade mark.
    4. In any prosecution for falsifying a trade mark or falsely applying a trade mark to goods, the burden of proving the assent of the proprietor shall lie on the accused.
  3. Penalty for applying false trade marks, trade descriptions, etc. Any person who,-
    1. falsifies any trade mark; or
    2. falsely applies to goods any trade mark; or
    3. makes, dispose of, or has in his possession, any die, block, machine, plate or other instrument for the purpose of falsifying, or of being used for falsifying, a trade mark; or
    4. applies any false trade description to goods; or
    5. applies to any goods to which an indication of the country or place in which they were made or produced or the name and address of the manufacturer or person for whom the goods are manufactured is required to be applied under section 117, a false indication of such country, place, name, or address; or
    6. tampers with, alters or effaces an indication of origin which has been applied to any goods to which it is required to be applied under section 117; or
    7. cause any of the things above mentioned in this section to be done;

    shall, unless he proves that he acted without intent to defraud, be punishable with imprisonment for a term which may extend to two years, or with fine, or with both;
    Provided that where the offence under this section is in relation to goods or any package containing goods which are drugs within the meaning of clause (b) of section 3 of the Drugs Act, 1940, or "food" as defined in clause (v) of section 2 of the Prevention of Food Adulteration Act, 1954, the offender shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both.

  4. Penalty for selling goods to which a false trade mark or false trade description is applied. Any person who sells, or exposes for sale, or has in the possession for sale or for any purpose of trade or manufacture, any goods or things to which any false trade mark or false trade description is applied or which, being required under section 117 to have applied to them an indication of the country or place in which they were made or produced or the name and address of the manufacturer or the person for whom the goods are manufactured, are without the indication so required, shall, unless he proves,-
    1. that, having taken all reasonable precautions against committing an offence against this section, he had at the time of the commission of the alleged offence no reason to suspect the genuineness of the trade mark or trade description or that any offence had been committed in respect of the goods; or
    2. that, on demand by or on behalf of the prosecutor, he gave all the information in his power with respect to the person from whom he obtained such goods or things; or
    3. that otherwise he had acted innocently;

    be punishable with imprisonment for a term which may extend to two years, or with fine, or with both:
    Provided that when the offence against this section is in relation to goods or any package containing goods which are drugs as defined in clause (b) of section 3 of the Drugs Act, 1940, or "food" as defined in clause (v) of section 2 of the Prevention of Food Adulteration Act, 1954, the offender shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both.

  5. Penalty for removing piece goods, etc., contrary to section 74. If any person removes or attempts to remove or causes or attempts to cause to be removed for sale from any premises referred to in section 74, or sells or exposes for sale or has in his possession for sale or for any purpose of trade or manufacture piece goods or cotton yarn or cotton thread which is not marked as required by that section, every such piece and every such bundle of yarn and all such thread and everything used for the packing thereof shall be forfeited to Government and such person shall be punishable with fine which may extend to one thousand rupees.
  6. Penalty for falsely representing a trade mark as registered.
    1. No person shall make any representation-
      1. with respect to a mark not being a registered trade mark, to the effect that it is a registered trade mark; or
      2. with respect to a part of a registered trade mark not being a part separately registered as a trade mark, to the effect that it is separately registered as a trade mark; or
      3. to the effect that a registered trade mark is registered in respect of any goods in respect of which it is not in fact registered; or
      4. to the effect that the registration of a trade mark gives an exclusive right to the use thereof in any circumstances in which, having regard to limitations entered on the register, the registration does not in fact give that right.
    2. If any person contravenes any of the provisions of sub-section (1), he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both.
    3. For the purposes of this section, the use in India in relation to a trade mark of the word "registered", or of any other expression referring whether expressly or impliedly to registration, shall be deemed to import a reference to registration in the register, except-
      1. where that word or other expression is used in direct association with other words delineated in characters at least as large as those in which that word or other expression is delineated and indicating that the reference is to registration as a trade mark under the law of a country outside India being a country under the law of which the registration referred to is in fact in force; or
      2. where that other expression is of itself such as to indicate that the reference is to such registration as is mentioned in clause (a); or
      3. where that word is used in relation to a mark registered as trade mark under the law of a country outside India and in relation solely to goods to be exported to that country.
  7. Penalty for improperly describing a place of business as connected with the Trade Marks Office. If any person uses on his place of business, or on any document issued by him, or otherwise, words which would reasonably lead to the belief that his place of business is, or is officially connected with, the Trade Marks Office, he shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both.
  8. Penalty for falsification of entries in the register. If any person makes, or causes to be made, a false entry in the register, or a writing falsely purporting to be a copy of an entry in the register, or produces or tenders, or causes to be produced or tendered, in evidence any such writing, knowing the entry or writing to be false, he shall be punishable with imprisonment for a term which may extent to two years, or with fine, or with both.
  9. No offence in certain cases. The provisions of section 77, 78, and 79 shall, in relation to a registered trade mark or proprietor of such mark be subject to the rights created or recognised by this Act, and no act or omission shall be deemed to be an offence under section 77 or section 78 or section 79 if,-
    1. the alleged offence relates to a registered trade mark and the act or omission is permitted under this Act; and
    2. the alleged offence relates to a registered or an unregistered trade mark and the act or omission is permitted under any other law for the time being in force.
  10. Forfeiture of goods.
    1. Where a person is convicted of an offence under section 78 or section 79, or is acquitted of an offence under section 78 on proof that he acted without intent to defraud, or under section 79 on proof of the matters specified in clauses (a), (b) and (c) of that section, the court convicting or acquitting him may direct the forfeiture to Government of all goods and things by means of, or in relation to, which the offence has been committed, or but for such proof as aforesaid would have been committed.
    2. When a forfeiture is directed on a conviction and an appeal lies against the conviction, an appeal shall lie against the forfeiture also.
    3. When a forfeiture is directed on an acquittal and the goods or things to which the direction relates are of value exceeding fifty rupees, an appeal against the forfeiture may be preferred, within thirty days from the date of the direction, to the court to which in appealable cases appeals lie from sentences of the court which directed the forfeiture.
    4. When a forfeiture is directed on a conviction the court, before whom the person is convicted, may order any forfeited articles to be destroyed or otherwise disposed of as the court thinks fit.
  11. Exemption of certain persons employed in ordinary course of business. Where a person accused of an offence under section 78 proves-
    1. that in the ordinary course of his business he is employed on behalf of other persons to apply trade marks or trade descriptions, or, as the case may be, to make dies, blocks, machines, plates, or other instruments for making, or being used in making, trade marks; and
    2. that in the case which is the subject of the charge he was so employed, and was not interested in the goods or other thing by way of profit or commission dependent on the sale of such goods; and
    3. that, having taken all reasonable precautions against committing the offence charged, he had, at the time of the commission of the alleged offence, no reason to suspect the genuineness of the trade mark or trade description; and
    4. that, on demand made by on behalf of the prosecutor, he gave all the information in his power with respect to the persons on whose behalf the trade mark or trade description was applied;

    he shall be acquitted.

  12. Procedure where invalidity of registration is pleaded by the accused.
    1. Where the offence charged under section 78 or section 79 is in relation to a registered trade mark and the accused pleads that the registration of the trade mark is invalid, the following procedure shall be followed-
      1. If the Magistrate is satisfied that such defence is prima facie tenable, he shall not proceed with the charge but shall adjourn the proceeding for three months from the date on which the plea of the accused is recorded to enable the accused to file an application before the High Court under this Act, for the rectification of the register on the ground that the registration is invalid.
      2. If the accused proves to the Magistrate that he has made such application within the time so limited or within such further time as the Magistrate may for sufficient cause allow, the further proceedings in the prosecution shall stand stayed till the disposal of such application for rectification and of the appeal, if any, therefrom.
      3. If within a period of three months or within such extended time as may be allowed by the Magistrate the accused fails to apply to the High Court for rectification of the register, the Magistrate shall proceed with the case as if the registration were valid.
    2. Where before the institution of a complaint of an offence referred to in subsection (1), any application for the rectification of the register concerning the trade mark in question on the ground of invalidity of the registration thereof has already been properly made to and is pending before the tribunal, the Magistrate shall stay the further proceedings in the prosecution pending the disposal of the application aforesaid and shall determine the charge against the accused in conformity with the result of the application for rectification in so far as the complainant relies upon the registration of his mark.
  13. Offences by companies.
    1. If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
      Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
    2. Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
      Explanation. For the purposes of this section-
      1. "company" means any body corporate and includes a firm or other association of individuals; and
      2. "director" in relation to a firm means a partner in the firm.
  14. Cognizance of certain offences.
    1. No court shall take cognizance of an offence under section 81, section 82 or section 83 except on complaint in writing made by the Registrar or any officer authorised by him in writing.
    2. No court inferior to that of a session judge, presidency magistrate or magistrate of the first class shall try an offence under this Act.
  15. Evidence of origin of goods imported by sea. In the case of goods brought into India by sea, evidence of the port of shipment shall, in a prosecution for an offence under this Act or under clause (d), clause (dd), clause (e), clause (f), clause (h), clause (i) or clause (j) of section 18 of the Sea Customs Act, 1878, be prima facie evidence of the place or country in which the goods were made or produced.
  16. Costs of defence or prosecution. In any prosecution under this Act, the court may order such costs to be paid by the accused to the complainant, or by the complainant to the accused, as the court deemed reasonable having regard to all the circumstances of the case and the conduct of the parties. Costs so awarded shall be recoverable as if they were a fine.
  17. Limitation of prosecution. No prosecution for an offence under this Act or under clause (d), clause (dd), clause (e), clause (f), clause (h) clause (i) or clause (j) of section 18 of the Sea Customs Act, 1878, shall be commenced after the expiration of three years next after the commission of the offence charged, or two years after the discovery thereof by the prosecutor, whichever expiration first happens.
  18. Information as to commission of offence. An offence of the Government whose duty it is to take part in the enforcement of the provisions of this Chapter, shall not be compelled in any court to say whence he got any information as to the commission of any offence against this Act.
  19. Punishment of abetment in India of acts done out of India. If any person, being within India, abets the commission, without India, of any act which, if committed in India, would, under this Act, be an offence, he may be tried for such abetment in any place in India in which he may be found, and be punished therefor with the punishment to which he would be liable if he had himself committed in that place the act which he abetted.
  20. Instructions by Central Government as to permissible variations to be observed by criminal courts. The Central Government may, by notification in the Official Gazette, issue instructions for the limits of variation, as regards number, quantity, measure, gauge or weight, which are to be recognised by criminal courts as permissible in the case of any goods.