Hi
1) Patents and Trademarks are territorial rights.
2) In general, the exclusive rights are only applicable in the country or region in which a patent and trademark has been filed and granted, in accordance with the law of that country or region.
3) Please be aware that India recognises the concept of the "Well-known Trademark" and the "Principle of Trans Border Reputation" (Supreme court - N. R. Dongre v. Whirlpool (1996) 5SCC 714)
4) If the USA Company has not registered its trademark or patents in India, then you might be granted a trademark and or Patent in India subject to the USA Company not opposing your application.
5)However the USA Company can definitely challenge your trade mark and patent at a later date on the following grounds
5 a) Worst case scenario : The USA Company may claim for
a) Interlocutory/ interim injunction restraining you from production and sale of chairs under Brand name "Royal Chair".
b) Damages or account of profits: Claim substantial revenues(close to 100%) earned by you as account of profits and also additionally claim damages (100%) of your income
c) Permanent injunction: Cancellation of trademark and patent.
6) You can counter any of the legal action that might be undertaken by the USA company by incorporating the following suggestions:
a) On the patent front in order to protect yourself from any future claims it is recommended that you should consider small/minor modifications
- The design patterns of the chair OR
- The composition of materials used in the chair OR
- Process of Manufacturing/Assembling of chairs etc OR
- Ensure Localisation of components up to 90% of your raw materials
b) On the Trade mark front, it is suggested to use transliteration( English to Hindi, English to marathi, English to Gujarati etc ) as an effective tool in trademark registration and register your trademark in multiple indian languages.
c) Under first use policy, you are entitled to certain protections. So you need to ensure that all your Procurement of raw materials, Production processes, Marketing, Sales and Distribution are adopted to ensure that your claim for first use in india are established and can never be subject to any Infringement OR Passing of claims at a later date.
Hope this information is useful.