• Can I use my trademark application name/number to apply for a loan license

Dear Sir/Madam,

We are a chemical and pharmaceutical trading firm. We have a wholesale FDA license issued by the Maharashtra state government – Form 20B, 21B.

We are now interested in starting our own cosmetic brand and have applied for trademark for the same. Our trade mark application has been objected by the trademark office and have been moved to show cause hearing. We have waited for almost 2 months to get the hearing date but unfortunately no news from the trademark office in Mumbai.

We tried to get in touch with the Trademark office and were informed that no hearing dates will be given till March/ April, due to Covid situation. The concerned officer however said that you can begin your work using application number and we will not object the same.

Now, the question is

- Can I use my application name/number to apply for a loan license – Form 32 A?
- What if my license gets accepted and my trademark get rejected/objected after hearing?
- Also, other than license in Form 32 A, do I need any other license to sell/ distribute my products online?
Asked 5 months ago in Intellectual Property

3 answers received in 2 hours.

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11 Answers

Can you get the same thing in writing from concerned officer that he will not take any objection and issue trademark freely as per the application.

 

Do you have the specific reason in writing given by the officer for rejection/objection of your trademark application.

 

 

Ganesh Kadam
Advocate, Pune
12081 Answers
136 Consultations

4.9 on 5.0

You have not mentioned reasons why your application has been objected to by trade mark office 

 

2) no details of show cause notice has been mentioned 

 

3) apply for loan licence on basis of application number 

Ajay Sethi
Advocate, Mumbai
82670 Answers
5249 Consultations

5.0 on 5.0

- Since, your trade mark application has been objected by the trade mark office , and further a show cause notice has also been issued , then legally you cannot use the application number for a loan licence .

- However you have not mentioned that why you have got a show cause notice .

- Further, if your trade mark application is objected due to similarity with other trades etc, then you will be given time and chances to change/replace the same legally, and finally you will be allowed a new trade mark .

- A licence is mandatory for trading the cosmetics/.

Mohammed Shahzad
Advocate, Delhi
7062 Answers
73 Consultations

5.0 on 5.0

Dear sir,

Trademarks are not part of any securities for loans or advances. 

In case the office objections to acceptance of the
application for registration cannot be waived even
after considering the applicant’s response to
examination report, the matter is set down for
hearing through the system.
This hearing commonly known as show cause
hearing is scheduled and conducted at the
appropriate office of the Trade Marks Registry.

The Show Cause Hearing section of respective
office of the TMR shall schedule hearing for all
such cases in order of their seniority and as per
availability of hearing officers.

A hearing notice shall be sent to the
applicant/agent/attorney concerned, intimating him
about the application No & date of hearing. The
hearing notice shall be sent approximately 15 days
before the date of hearing.

A cause list in respect of cases fixed for hearing
shall be prepared on monthly basis and the same
shall be put up on office website shall be displayed
on the notice board
 After allocation of cases to specific hearing officers,
the cause list with the name of the Hearing Officer
shall be displayed on the notice board of the
respective office
 The Show Cause Hearing Section shall ensure that
all the relevant documents pertaining to the
application scheduled for hearing are digitized and
available in the system.

 

Adjournment of hearing
If the applicant or his authorized agent is not
prepared or is unable to appear for hearing and files
an application for adjournment of hearing, the
Hearing officer may allow the request for
adjournment and then a next date will be fixed for
hearing. However no adjournment will be given on
frivolous grounds. Hearings may also be adjourned
and may be fixed on another date due to
administrative reasons. In all adjournments of
hearing, a fresh hearing notice fixing hearing on
another date shall be issued to the
applicant/agent/attorney concerned.

 Note:

It is advisable not to seek loan from the application number till the show cause hearing.

you can apply for an appeal to the High court so that your case can be heard and quick redressal can happen.

 

 

  • For more assistance, you can book a consultation with me.
  • If you like my answer, please give a good rating and leave a review.

 

Anik Miu
Advocate, Bangalore
1516 Answers
18 Consultations

5.0 on 5.0

The finance institution may or may not accept the application number of the trademark application to grant you loan on that basis, actually it is not a concrete document and ther is no guarantee tht the trademark license would be granted by the trademark registering authorities, hence the institution may not entertain your request on this basis.

 

The loan granted would be subject to the grant of trademark approval, 

 

Doing business is about the products what you want to sell and how.  

The grant of loan would be based on the merits that your application would contain  or on the basis of various factors involved to grant loan.

Selling various products that are not covered in the loan license is your own problem to which the institution may not interfere. 

T Kalaiselvan
Advocate, Vellore
72756 Answers
1110 Consultations

5.0 on 5.0

You should not apply for loan licence as most probably your application for trademark is going to be rejected 

Ajay Sethi
Advocate, Mumbai
82670 Answers
5249 Consultations

5.0 on 5.0

Yes you can but the purpose will not be for collateral

Prashant Nayak
Advocate, Mumbai
23442 Answers
49 Consultations

4.4 on 5.0

Dear sir/maam,

it is advisable to halt your action till the final judgement. 

you can apply for an appeal to the High court so that your case can be heard and quick redressal can happen.

  • For more assistance, you can book a consultation with me.
  • If you like my answer, please give a good rating and leave a review.

 

Anik Miu
Advocate, Bangalore
1516 Answers
18 Consultations

5.0 on 5.0

Hello... First of all to bring clarity to your query... Both the applications under trademark and From 32 A of FDA are different and independent and both should not the interplayed or can be mixed up and refusal or rejection in any one of them does not affect other.

I don't know who advised you but why you want to use your TM application number in Form 32? Of course, you can use your trade name for trading without registering it but it is not advisable or feasible to use your TM application no in Form 32A. 

Moreover, If your FDA license gets approved and your TM got rejected or refused you can still carry your business with your trade name unless there is an issue of infringement. 

There is no separate form except form  42/32  of  FDA for selling your cosmetics products online.

Advisory: 

1. Don't use your TM application no in form 32.

2. Remove your TM objections and if it gets rejected try to alter or modify your TM with new apllication.

3. If your FDA application is approved then you can start your business.

4. Seek legal advice from TM attorney for more clarification.

 

Pooja Ashar
Advocate, Ahmedabad
207 Answers
2 Consultations

5.0 on 5.0

- As i mentioned above that if the said application may be refused , then bank may create problem later. 

Mohammed Shahzad
Advocate, Delhi
7062 Answers
73 Consultations

5.0 on 5.0

For the purpose of this rule a 'loan licence' means a licence which a licensing authority may issue to an applicant who does not have his own arrangements for manufacture but who intends to avail himself of the manufacturing facilities owned by a licensee in Form 32.

The refusal by trademark authorities has nothing to with the loan license grant authority. 

Section 9(1) in The Trade Marks Act, 1999

(1) The trade marks—

(a) which are devoid of any distinctive character, that is to say, not capable of distinguishing the goods or services of one person from those of another person;

(b) which consist exclusively of marks or indications which may serve in trade to designate the kind, quality, quantity, intended purpose, values, geographical origin or the time of production of the goods or rendering of the service or other characteristics of the goods or service;

(c) which consist exclusively of marks or indications which have become customary in the current language or in the bona fide and established practices of the trade, shall not be registered: Provided that a trade mark shall not be refused registration if before the date of application for registration it has acquired a distinctive character as a result of the use made of it or is a well-known trade mark.

This is something concerned with the approval of trademark alone and not to prevent you from doing a business that you have proposed to do by obtaining proper license from the authorities concerned. 

You may proceed to obtain loan license as proposed even without the approval of your application for trademark registration, if at all there arises any problem in this regard, you will be notified about the illegality quoting the relevant law under which it becomes invalid, hence you can challenge the same on merits at that time. 

T Kalaiselvan
Advocate, Vellore
72756 Answers
1110 Consultations

5.0 on 5.0

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