A collective trademark is a mark which is used or owned by a group of entities. These marks represent the products and services of members from others. Collaboration plays a significant role in today’s business market, so a collective trademark will help support small and medium-sized businesses to grow their operations. According to Section 2(1)(g) of the Trademark Act 1999, a collective trademark is a mark that distinguishes the goods and services offered by members of a specific business association of persons. A collective trademark consists of letters, words, names, and designs.
Key Specifications of a Collective Trademark:
The ownership of a collective trademark will be held by a collective organisation, such as a cooperative or an association. Members of the organisation are only allowed to use the trademark. Collective marks can distinguish the goods and services of a group according to the region, quality, and manufacturing method. A set of rules will be established for group members regarding the use of the mark and the quality standards to be followed. Additionally, a collective trademark can be used to represent regionally specific goods and services. A collective trademark will be mostly used by groups or associations such as farmers, traders, or professionals in the same industry to indicate that their members belong to the organisation and adhere to shared standards.
According to Section 63 of the Indian Trademark Act, 1999, a collective trademark must comply with specific regulations to be eligible for registration, including the criteria for use of the mark, the manner of use, and the membership conditions. So, when applying for a collective trademark, the applicant should provide details regarding the authorised users, the rules for how the mark should be used, and penalties for misuse. Section 68 of the Indian Trademark Act outlines the grounds for the removal of a trademark, such as misleading usage and failure to comply with regulations. Businesses should make sure that the authorised users of the mark don’t use the mark in a way that could mislead the public.
Case Study of a Collective Trademark
Tea Board India Vs ITC Limited
The Tea Board of India has acquired the trademark and geographical indication protection of the “Darjeeling” for the name and logo, and this is a collective trademark for the tea which is produced in the Darjeeling region. ITC Limited has used the “Darjeeling” name for its hotel, “Darjeeling Lounge”, which raises an issue that it could mislead consumers into believing a connection with authentic Darjeeling tea. The court denied the injunction because the use of the name “Darjeeling” for the lounge did not constitute a direct infringement on the tea’s GI status.
How is a Collective Trademark Different from a Certification Trademark?
An independent entity will own a certification trademark, and its purpose is to certify that the goods and services meet specific standards, such as quality and performance. Multiple users can use a certification mark if their products and services are compliant with the standards set by the certifying body. A collective trademark emphasises group identity, whereas a certification mark focuses on quality standards. An example of a certification mark is the ISI mark, which indicates the quality of a product.
How will Businesses Benefit from a Collective Trademark?
Improves the Brand Value
Members of the group who are part of the association will benefit from the collective mark’s reputation. A collective mark can establish a unified brand identity, thereby improving the credibility of the products and services associated with the group.
Legal Protection
The Trademark Act of 1999 provides specific provisions for the protection of collective marks. Section 67 of the Trademark Act deals with the infringement proceedings of the collective mark. If there is any misuse of the registered mark, the owner can file infringement lawsuits, and the court will take appropriate action according to the loss that has occurred due to the infringement. Section 62 of the Trademark Act prevents the registration of a mark which is confusingly similar to a registered collective mark.
Economical
The collective trademark will be owned by the group’s members, allowing for the sharing of expenses for registration, protection, and maintenance. Additionally, joint branding is possible with the collective trademarks, thereby reducing individual costs.
Supports Regional Identity
It can be used to promote unique products from a specific area. For example, certain fruits are native to particular regions, and small-scale businesses in these regions can utilise collective trademarks to promote and distinguish their products in the marketplace.
Market Accessibility
A collective trademark will be owned by a unified group, which can gain more influence than a single entity, and this can be beneficial in accessing broader markets. Additionally, this feature will be helpful for small-scale businesses to compete with established ones in the market.
Market Differentiation
The products and services of the group members will stand out from others in the market. A collective trademark will promote quality, origin, or ethical standards associated with the group.
Customer Trust
Standardised practices and shared values can help businesses to achieve brand loyalty. Regional authenticity and fair trade play a significant role in this.
How is a Collective Trademark Different from a Regular Trademark?
Collective trademarks differ from regular trademarks as these marks represent the goods and services of a group, such as an industry or an association. A single person or company cannot own a collective trademark. At the same time, an individual or an entity will own a regular trademark. The members in the association will only be able to use the collective trademark legally. A collective trademark can be used to identify the goods and services of a geographical area. A large group of businesses can also own a collective trademark, and the users will be the members of the group. A collective mark will indicate the members and their shared standards, and it will also help establish customer trust. A regular trademark distinguishes the products and services of a single entity. A regular trademark can offer brand distinction by protecting individual brand identity.
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Trademark registration is necessary to secure your brand legally and protect it from infringement. A registered trademark can enhance brand value and provide legal protection. Businesses should be aware of the legal requirements and procedures for registering a trademark. Jitendra IP and Legal Services can help companies with the trademark registration procedure in India. Additionally, we can help you with trademark monitoring, enforcement, and protection.
