Collective Marks under Trademark Law

A trademark is a distinguishing feature that may assume the form of a symbol, design, word, phrase or any combination thereof to distinguish the goods or services of that entity from those of others in the marketplace. Its origin and geographical aspects show that a consumer can determine the region from which a particular good or service has come. Trust trademarks, which essentially mean something like ‘conformity of goods and/or services’, are used above all for registration of logos as such symbols associated with goods, their educating titles as well as phrases; however, they do take the particular aspects such as unique shapes or colour schemes or even auditory cues. In other words, trademarks are useful tools for the legal systemic order with regard to the assistance provided to firms while availing and carrying out any chances of risk and likelihood of copying them by other firms.

Section 2(1)(zb) of the Trade Marks Act, 1999 defines a “trade mark” as a mark capable of being represented graphically and which is capable of distinguishing the goods or services of one person from those of others and may include the shape of goods, their packaging and combination of colours; and –

(i) In relation to Chapter XII (other than Section 107), a registered trademark or a mark used in relation to trade goods or services for the purpose of indicating or so as to indicate a connection in the course of trade between the goods or services as the case maybe, and some person having the right as proprietor to use the mark; and

(ii) In relation to other provisions of this act among used or proposed to be used in relation to goods or services for the purpose of indicating or so as to indicate a connection in the course of trade between the goods or services as the case may be and some person having the right either as a proprietor or by way of the permitted user to use the whether with or without any indication of the identity of that person and includes a certification trademark or collective mark.

Even though some countries adopt the ‘first in time, first in right’ rule and recognise the use of marks as evidence of their rights, in most jurisdictions, it is a prerequisite for obtaining exclusive rights to such marks. Such registration makes it possible for the holders of such marks to exploit them commercially and protect their markets by taking legal actions against the infringers. Trademarks are significant for businesses in that they create purchase intentions, enable consumers to identify the good or service being offered by the company, and aid in the development of the intangible assets of the firm. Moreover, they facilitate the control processes by shaping consumers’ attitudes regarding the quality and authenticity levels of the goods.

What is a Collective Mark Under The Trademarks ACT, 1999

According to the legislation governing trademarks in India, a collective mark is a category of trademarks adopted by a group or an association to represent the source of goods and services as its members, unlike the conventional marks, which are more so the trademarks of a single company or a person, a collective mark is affixed to the goods or services by the members of an organisation to ensure that they meet a defined standard of quality or even origin. For instance, a collective mark might indicate the fruits of the labour of a group of persons in a soft toy-making co-operative or the services provided by the members of any other organisation.

The operation of collective marks in India is covered under the Trade Marks Act 1999. Such marks are only permitted to be used by registered clubs and associations, and only those that have a code of practice for that mark have submitted a set of rules for its operation. This mark is for use in the promotion and protection of the image of the group of members while ensuring that these members and, more importantly, non-members do not abuse it. Some collective marks are, for example, those used by trade unions, associations of producers, or certifying organisations to protect society and its members.

Section 2(1)(g) of the Trademarks Act, 1999 defines a collective mark as a trademark distinguishing the goods and services of the members of an association of persons not being a partnership within the meaning of the Indian Partnership Act 1932, which is the proprietor of the mark from those of others.’

Features of a Collective Mark

Collective marks enhance the presentation of the market and recognition of people and their requirements, all of which are protected as well under the trademark.

1. General Ownership: Disregarding the single trademarks that are on the owner’s name, collective marks are the name of associations or groups or collective organisations entitling them to a type of membership.
2. Origin or Quality Claims: These marks state that the goods and/or services hold certain quality levels or are from the members of the said association.
3. Restrictions on use: The said association is duty-bound to establish mechanisms and keep them in place such that no third parties shall be allowed to use the collective mark.
4. Limitation of Abuse: The use of collective marks is, however justified, primarily looking at the community that benefits from the sector because only a few select individuals are allowed to use them.
5. Requirement of a Mark for its Registration: The mark should possess the required distinctiveness, so it could differentiate the member goods or services from the goods or services available with any other trader in the market.
6. Importance of registration: According to the Trade Marks Act of 1999, it is an offence to use words or a combination of words or symbols that other organisations or individuals registered as trademarks.

Types of Collective Marks

There are not many types of collective marks, thus not making the concept complicated or confusing to understand. Below are the types of a collective mark:

1. Geographical Indications (GI) Collective Marks: These marks are meant for imperatively identifying the products of specific geographical range with their particular character or reputation. For example the mark of ‘Darjeeling Tea’.
2. Association Marks: These marks are used for advertising purposes by trade unions or associations with respect to the products and services provided by their members. For instance, it would include a common mark of a cooperative society.
3. Professional Collective Marks: Professional bodies also have marks for indicating membership or professional qualification as in the case of chartered accountants or legal practitioners like for example the logo of the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI).
4. Certification Based Collective Marks: These marks indicate that there is a found quality of production, vectors of the manufacturing method, or composition of materials being observed in the production of such goods and/or services.

Benefits of a Collective Mark

Collective Marks, that are of course registered, are significant to associations and their members for developing trust and market credibility and for pursuing their common goals.

1. Protection of Collective Use of the Reputation: The purpose of collective trademarks is to protect the association’s, group’s or collective’s goodwill by permitting usage only to the group’s members. This restriction just helps in preserving the trust in the market and the reputation of the entire group.
2. Quality Assurance: Such marks indicate either the quality or features of goods or services offered by the collective group. The public relates the quality of the mark with the collective, hence building trust.
3. Control of Abuse: Collective marks also prevent non-members from using the mark to avoid infringement or breach of the mark.
4. Group Inclusion Promotion: They help in creating a single brand for the members of the association and helps the consumers to identify their goods/services.
5. Value Addition: Collective marks help the members in achieving a unique feature that helps them compete with bigger or well-established corporates or institutions.
6. Encourages Joint Actions: Collective trademarks assist the organisation’s members to act jointly in creating a foundation for promotional and advertising activities.
7. Monetary Benefits: Common trademarks enhanced the quality of goods or services in the market, thereby assisting local or regional associations or, more particularly, small-scale businesses.
8. Protective Policies: Collective trademarks that are filed under the Trade Marks Act of 1999 provide the group with exclusive use of the mark and provide a legal defense for illegal appropriation of the mark.
9. Enhancement of GIs: Geographical indicators can be improved by using collective marks which can distinguish between the products based on their place of origin.

Conclusion

Collective marks are of significance in trademark law as they intend to promote the causes of a society or an association and protect the quality and prestige of goods and services rendered by its members. Unlike trademarks, which are the rights of individual owners, collective marks emphasise the group as a whole and the responsibility of all its members in the usage of the mark, thus assisting customers in identifying goods and services belonging to certain groups or geographical areas. This further ensures that cooperatives, trade unions, professional organisations and other such groups can benchmark their members, promote brand loyalty and build markets.

In India, the law that governs the use of collective marks is the Trade Marks Act 1999, which includes the entire process of trademark registration and enforcement of the rights of groups and their members. This law stipulates that only a certain number of people or groups can use the mark as intended, and it prevents damage to collective goodwill because access is given to persons outside the association. Also, by underlining the source and standard of goods or services, collective marks reduce the incidence of unhealthy competition and give confidence to the consumers.

Given the high collectivistic tendencies of Indian society, it is not surprising that most collective marks, particularly in the context of crops, crafts, and services provision, are also very important. They further support local industries and culture because they value products associated with specific places. Overall, collective marks lie between the protection of individual interests in a collective context and ensuring the benefit of goodwill associated with the mark to remain with the association alone. They provide an innovative approach that improves a mutually beneficial working relationship, enhances present market participation, and reduces the potential for market deception.

Related Services

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