India jurisdiction report: Remedies against infringing names

The provisions of sections 20 and 22 of the erstwhile Companies Act, 1956 was amended vide Trademarks Act, 1999, to recognise bona fide rights of registered trademark proprietors and to provide safeguards against infringements.

Section 20 provided for the government not to allow companies to be incorporated with names that closely resembled trademarks. Section 22 carried the intention further and empowered the government to pass orders either suo moto or on application made by a registered proprietor, against companies that had been incorporated or had come into existence with a name similar to that of registered trademarks.

Position under Companies Act, 2013

With the coming into force of the Companies Act, 2013, sections 4 and 16 correspond to the erstwhile sections 20 and 22 of the previous act. Section 4(2), empowers the Registrar of Companies to preclude companies from incorporation of or registration with names, the use of which constitutes an offence under any law.

Section 4 read with rule 8(2) of the Companies (Incorporation) Rules 2014 stipulates that where the name of a new company or an existing company that proposes to change its name, includes a trademark, then such corporate names are undesirable names and incapable of being reserved as a corporate name.