Applicable Laws & Legal Compliances for Brand Protection in India: Best Corporate Lawyer Advice in Delhi NCR
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“Brand Protection is the need for every Corporate and Entrepreneur . The registration of brand, registration of logo, registration of mark and the registration of trademark is/are all the facets of brand protection in India. The best corporate lawyer advice for brand protection is to ensure the registration of the brand as per the applicable laws of India. Brand protection is the first step towards brand recognition.”
Introduction to Protecting the Brand from Identity Theft
A brand identity protection is a privilege indeed, but a need for large and small businesses to assure commercial fairness and asset growth. Success is prone to copying and utilizing one’s reputation. As a consequence, a company’s trademark strategy should prioritize providing maximum trademark and product protection. A brand’s success and protection depend on its distinctiveness and uniqueness. Trademarks are regularly used expressions or symbols that identify a brand. Unregistered trademarks are those that are used to distinguish one’s goods from those of competitors. Protecting a product’s structure or packaging Confirm your brand before registering or using it. Start your trademark online search. IP experts with access to global trademark databases can do additional searches. Identity theft is now a major privacy infringement that has negative social / psychological consequences. However, the ramifications of identity theft extend beyond individuals to organizations and businesses. Indian laws lag behind the terms of identity theft prevention and data protection, providing need for improvement in terms of quality laws, regulations, and regulations. Manipulative offenses have increased in recent decades due to a lack of explicit prohibitions. A good system with a suitable jurisdictional framework is required to enable adequate implementation of the existing laws or maintain equal monitoring. A minimum of power overlaps and sufficiently compassionate people are also required. Finally, governments must educate the public on how to properly use the internet and secure personal information online. They should also be educated on their responsibilities and remedies in the event of a fraud. When using credit files, users should keep track of personal information and inquire whether such information is essential or safe.
Brand may spend decades establishing a dynamic, engaging, and trusted brand, only to have it destroyed & stripped away in a matter of seconds due to the consequences of online fraud. Your clients trust you to preserve their personal data and go above and beyond to protect it from being targets of cyber fraudsters in this age of identity theft, information hacking, and virtual crime. Theft of brand identities has increased significantly. Perpetrators carry out impersonation threats on companies in order to turn a profit illegally from achievement of brands, causing harm to the companies involved. It is therefore more crucial than for business owners to act swiftly when faced with any type of company identity theft. Brand’s online security, that is a robust online protection solution meant to protect the company’s reputation and integrity, is equally important to its success. It comprises a wide-ranging, continuous surveillance of digital sites and websites in order to detect possibly dangerous acts. It’s critical to recognise that having a social media presence has both benefits and drawbacks, emphasizing the significance of utilizing online brand protection. The main force for this goal must be one of the most exact and effective measures, ensuring that the trademarks have the highest number of internet precautions conceivable.
What is online brand protection and why is it so important ?
When people see a brand, they get a sense of its brand identity. It refers to a customer’s degree of trust, professional competence, and reassurance when dealing with a company. It’s a must-have tool for any company, especially a small one. The brand encompasses how people perceive your company and everything associated with it, from the website to the way you interact with clients. It’s built around three elements:
● a visual depiction of the brand assets, your personality, and your voice.
● Excellent brand identity has to be maintained across all marketing platforms and must safeguard your most valuable asset.
● The brand’s intellectual property (IP) (or intellectual property).
Brands safeguard their identity & uniqueness in different ways: through patents, trademarks, and through nondisclosure agreements (NDAs) (non-disclosure agreements) also copyright is in the list. It’s the most effective strategy to safeguard your brand and intellectual property from online dangers such as coloured advertisers, fraudsters, and a variety of other entities who alter your brand’s perfect online and marketplace presence. Online brand protection, like a vaccine, can not guarantee that these actors would not try to harm your brand again in the future. They are rapidly recognised and eradicated, however, if a comprehensive trademark protection programme is in place. Online brand protection is an “offensive” defense against income loss, client trust and loyalty, and organizational stability that inevitably follows criminal elements exploiting your brand for personal benefit. That’s why online brand security is so important. Every company must be wary of having its brand distorted, exploited as both a vehicle for deceptive communications, or defamed in order to bring a huge financial catastrophe. When it comes to phishing, malware, brand impersonation, brand identity theft, and other forms of virtual fraud, complete online brand protection is a must for ensuring your company’s ongoing operational viability, retaining customers, and avoiding the burdensome loss of a long-term client base. Establishing firewalls & antivirus software isn’t enough to secure your online business. Professionals who seem to be aware of cybersecurity concerns and know how to respond to virtual fraud assaults are required. It entails checking public domains & Dark Web servers for proof of your brand getting misrepresented or exploited to spread online fraud schemes. It entails locating and disabling bogus social media profiles that use your brand & content to steal login details & gain access to your secure networks.
What is brand identity theft ?
Brand identity theft is the criminal impersonation of a company, sometimes known as corporate identity theft. In this sense, any type of company having an ID, from a sole proprietor to a multinational company, could be the victim. We can automatically recognise and erase brand imitation instances to prevent online identity fraud, as well as a commercial identity theft case. Fraudsters use a variety of tactics to acquire business identity information and profit from it, such as
● Fake Social Media Profiles: False accounts are created by infringers who exploit the names, photos, trademarks, or other identifying details of people, brands, and companies to deceive others. It may take several days for newly established accounts to be discovered. Impersonators using stolen identities target clients with aggressive phony advertising campaigns during these periods of decreased visibility.
● Websites that are similar to one another: Another tactic used by impersonators is to duplicate the complete look of a well-known company’s website. Customers are directed to these bogus websites via search results, social media ad campaigns, or emails who are unaware of their existence.
● Email’s that are phising: The use of a brand’s logo and identity in emails sent to employees by impersonators is a prevalent type of commercial identity theft. Fraudsters hope to obtain a company’s banking details by doing so. This type of data can be used to commit financial fraud, such as getting loans, credit lines, or lines of credit in the name of the company.
● Misuse of Information: Thefts can easily obtain the information they require. Some information, such as sales tax numbers or business license numbers, may be freely available online if organizations post documents containing corporate information. Identity thieves prepare false tax forms for refunds using stolen corporate information.
● For a trademark, a ransom is demanded: Criminals might try to register your business’s names and logos as a trademark. In exchange for revealing their registered corporate identity, they seek a ransom.
● Fake Invoices: Infringers may create bogus invoices using your company’s name, or they may mimic a partner by sending you an invoice under their name and demanding payment.
● Brand Identity theft’s Impact: Identity theft can affect every type of business, as we’ve previously mentioned. It has the ability to tarnish a brand’s image and, as a result, reduce a company’s profit margin dramatically. The most serious consequences for businesses are listed below:
● A tarnished brand Image: The company’s reputation is one of its most valuable and vulnerable assets. It depends upon the quality of your business connections with creditors, partners, and, most crucially, customers. When your organization is targeted by identity thieves, it can drastically alter how people perceive you and destroy the trust you’ve earned with your consumers.
● Customer Scepticism: Customers who fall prey to bogus websites may wind up buying counterfeit goods or never receiving the goods they paid for. Fake social media profiles are no different. Customers are dissatisfied with their experience & decide to switch to a different brand next time.
● Revenues lost: Significant revenue losses are a significant concern, particularly for small enterprises with limited financial reserves. Employees, partners, vendors, and capital providers may be unable to be paid on time by business owners. Maintaining tax obligations and purchasing supplies are both examples of this.
● Tax conflicts can be complicated: If your company’s identity is used to file fake tax returns, you will almost certainly face fines and audits. Clarifying the problem can take time and money.
In addition to better intellectual property (IP) protection, When a logo, or even a trademark that is surprisingly similar to both a trademark application, is used in conjunction with the things and operations in which it is registered, it is considered infringement. Infringement occurs when one party, the “infringer,” uses a trademark that is identical or confusingly similar to the trademarks of another business in relation to types of goods and services that become functionally identical to the products and services covered by the registration. Infringers on either a trademark owner’s registrations can face legal action.
In this era of digitalization, brand identity theft is a severe problem for Businesses. It is a major crime that is rapidly spreading, causing financial harm to customers, prominent institutions, retail outlets, and the overall economy. Online identity fraud has expanded the range of forms, making the situation more complicated. It is not required for such fraud to have simple monetary consequences, it could also result in severe reputational harm, time spent dealing on false information, or exclusion from certain services because stolen names have now been misused. Electronic networks play a role in identity theft, as well as other online harm.
Brand Identity can be Well Protection by way of Copyright Registration & Trademark Registrations
Trademark protection is generally extended to logos and visuals used as business brand identities. Since they are ‘creative works with an intellectual component’, these are also covered as copyrights. Trademark and copyrights are two different categories of intellectual property which are protected under different laws and have different levels of protection. When used in trade, a trademark is indeed a mark that can be visually expressed and that can differentiate one person’s goods or services from those of another. While every company organization strives for recognition and devotes a significant amount of time, effort, and ingenuity to developing beautiful brand identities and logos, not all logos are unique or creative. Because of their originality and affiliation with their owners, brand identities can effectively represent enterprises, although they may not meet minimal creative standards or qualify as unique. However, due to a lack of aesthetic character, the same may not be eligible for copyright protection. Similarly, while the use of a particular color or mix of colors can create a strong brand identification, it may not be copyrightable. Pursuing copyright and trademark registration, which will safeguard your logo from infringement at that time. The fundamental objective underlying copyright and trademark is to protect the intellectual property rights and ensure that no other firm steals your idea, logo design, or similar names. Copyrights and trademarks are both great ways to safeguard the original thoughts from being utilized as someone else’s property. Without a doubt, this is the most significant advantage they provide. People will recognise the brand by its trademark as long as they use it in commerce to determine the source for the brand or services. It’s an important and a powerful communication tool that may convey the Online brand image as well as the items or services you provide to customers in an instant. Although trademarks provide significantly more security than copyrights, copyrights are crucial for the safeguarding of logos..
Legal Remedies available against Identity Theft & Brand Protection in India
Criminal Remedies: A trademark infringer can be sued in court (In civil law proceedings, the plaintiff seeks remedy for himself, but in criminal law cases, a complainant asks punishment for the infringer.) If you participate in the next two activities, you will face criminal charges.
Complaint before a Magistrate: To begin a prosecution under the TradeMarks Act’s Penal provisions, The rightholder can file a complaint with a Magistrate, requesting orders to, to undertake inquiries under the Criminal Procedure Code’s section 156 (3) as well as a petition to obtain General Search Warrants under section 93/94 of the Criminal Procedure Code of 1973. The Trademarks Act, section 115(4), specifies how to submit a direct trademark infringement complaint with the police. The Act authorizes the lowest rank of police official, the Deputy Superintendent of Police (DSP)/Assistant Commissioner of Police (ACP). Before continuing, the concerned DSP/ACP must first get a trademark opinion from the Registrar of Trademarks.
The following provisions of the Trade Marks Act of 1999 can be invoked for remedies:
1. Anybody who misrepresents a trademark as well as falsely appears to apply a trademark to services and goods is subject to
2. Anyone who helps the accused mostly by selling, supplying, or looking to hire assistance for these kind of goods, owning such goods to sell, or in any other way is punishable under Section 104 of a Trade Marks Act with a term of imprisonment of not or less 6 months and not more than 6 years, as well as a fine of not be less than Rs 50,000 but no more than Rs 2,00,000.
3. If a person has committed any of the acts stated in section 103 or 104 for the second or subsequent time, he shall be sentenced to a year in prison and/or the fine between Rs. 1,00,000 and Rs. 2,00,000.
Period after the Limitations: Any trademark infringement action must be filed within 3 years of the date of the infringement. When an offense occurs on a regular basis, a new strategy is needed. The IPC of 1860, and the IT Act of 2000, makes illegal to steal identity. Identity theft is a crime, Electronic records are the focus of these new provisions. “Information, record, or data created, visual, or sound delivered or received through every digital channel,” according to the IPC (1860). “Data, record, or data produced, visual, or sound communicated or retrieved in any electronic form,” according to the Information Technology Act of 2000.
The term “theft” as defined by Section 378 of the Indian Penal Code, 1860, excludes identity theft because it only pertains to transportable, tangible items and has no bearing on cyberspace. Given the fact that its IPC, 1860 doesn’t somehow expressly recognise “identity theft,” it does contain provisions for sentencing forgery, so identity theft has also been included to the range of these rules as a consequence of the IPC, 1860’s revision. Identity theft falls under sections 419 and 420 of Indian Penal Code since it involves impersonation. Identity theft is classified as a type of long-term forgery and fraud with in Penal Code of 1860, thereby eliminating the issue. It took some time to grasp the need of offense-intentional legislation, such as Section 66C of the Information Technology Act of 2000, which forbids the fraudulent and dishonest use of a person’s identity feature.
Information Technology Act of 2000 Provisions for Nrand Protection in India
In India, the major regulation governing cybercrime is the Information Technology Act of 2000. Despite the fact that its primary goal was to acknowledge, IT Act 2000 appears to be the most important act dealing with e-commerce in India, with cybercrime regulation in India.
Section 66A Under Information Technology Act of 2000, Section 66A, sending “grossly offensive” or “menacing” information via computer or communication device is a crime.
Section 66B Receiving or keeping an accused of stealing computer resource and communication device, knowing or needing reason to believe it is a stolen device resource and communication device, is punishable by three years imprisonment, fine upto 1lakh or both.
Section 66C defines identity theft as using another person’s electronic signature, password, or even other unique identification characteristic unlawfully or dishonestly, and punishable by up to three years imprisonment and a fine of up to Rs. 1 lakh.
Section 66D was added to penalize computer-based impersonation cheating.
With the rise of internet frauds and cybercrime, the government is revising its legislation to protect the people’s interests.
The regulations protecting “sensitive personal information” in the hands of intermediaries and providers (corporations) have also been strengthened.
Legal Remedies to protect Online Brands in India and Brand Protection in India: Best Corporate Law Advice
Trademark Registration
A trademark is the most effective way of protecting for an online brand. While obtaining trademark rights and obtaining them takes a bit of time, when you have them, the infringement by others is dealt with brutally. For registering a trademark, this is an excellent resource. You own a trademark when you register it, and you can sue anyone else who infringes upon that. One can sue anybody who uses your trademarked objects or designs against the permission anywhere else in the globe when you have trademark protection for them.
Protection for the Copyright
Although if your brand has already been protected under copyright law, copyrighting this should make it that much easier to detect & erase infringements on the internet, as long as the infringement complies with the rules set forth in the copyrighting agreement.
Identifying and using Logo on a Wider Basis
The logo or brand is the most apparent aspect of a company’s identity. Even the simplest logos & names have purpose and meaning, and thus serve as a way for customers to communicate with you. Contemplate the message you wish to express when signing a logo.
Fake E-commerce platform’s domain monitoring
Fake email schemes, and other methods to divert traffic from your established channels will be purchased by fraudsters. Copyright laws can be used to remove content that is misrepresented as yours if you regularly review similar or related website domains that you own. If you don’t have the right tools to optimize this type of scanning, it may require ongoing manual effort.
Case Laws on Brand Protection in India: Indian Court’s Outlook
● Starbucks Coffee V Sardarbuksh Coffee, CS (COMM) 1007/2018, on August 1, 2018, High Court of Delhi, The well-known Starbucks was victimised by the cunning minds of Indian infringers, who used Sardar rather than Star in such a deceptive and widespread manner that many were made to believe they were owned by the same individual. The Court did, however, award the Defendant the right using the Trademark Sardar Baksh to Sardarji Baksh in its altered form, as well as the right to sue anyone who uses Baksh in the future.
● DM Entertainment v Baby Gift House and Ors, Here issues of publicity rights & character retailing arose. It was alleged that by creating miniaturized toy cars of public figures, the defendant was engaging in an unapproved action and thereby endangering the company’s and singer’s reputation. Due to the lack of a specific description of the ability to pass off, the court used precedent to award the plaintiff Rs. 1 lakh as compensation.
● Samdeep Vaghese vs. Kerala State Sections 65-66 of the IT Act of 2000, as well as Sections 419 & 420 of the Indian Penal, 1860, apply. www.jaypolychem.com. A website called www.jayplychem.org was put up with social network Samdeep Varghese, the accused in partnership of Preeti and Charanjeet Singh, Sam’s sister and brother-in-law, including both, and Preeti’s spouse (who was fired by the company). Malicious allegations were made against firm and the directors on this website. In Cochin, a group of well-known and unknown criminals founded a corporation to perpetrate fraud, impersonation, and other crimes. Amardeep Singh & Rahul were frequent travelers to Delhi and Cochin. To defame the Company and its Directors, forged email accounts were employed. Everyone on the preceding list had slandered the company’s name and reputation. As a consequence, the corporation suffered a significant financial loss. 66E – Penalties for invading someone’s privacy
● The Delhi High Court stated in The Coca-Cola Company Vs. Bisleri International Pvt. Ltd the court has jurisdiction to hear the issue. The solution in this case was brought in by the ambiguity of the brand-name MAAZA from said plaintiffs’ corporation to the defendants’. The defendant used the trademark both domestically and internationally. In addition, the plaintiff requested a permanent injunction and claimed damages for the corporation. The court imposed an interim injunction after concluding that the defendant is responsible for trademark infringement predicated on excessive usage of the mark.
FAQ’s on Brand Protection in India and Brand Identity Theft in India
1. What is brand identity?
Brand identity refers to the visible features of a brand, such as color, design, or logo, that distinguish the reputation in the mind of consumers.
2. What is online brand identity?
Online branding is a way of establishing a person’s or a company’s online identity via the use of websites, Google, Facebook, Twitter, blog posts, and other internet marketing tools.
3. Why is brand identity important?
Brand identity aids in the construction of a brand’s distinct stance and differentiation from competitors in the industry. This differentiation is also useful in developing a marketing plan and establishing a loyal consumer base.
4. What constitutes Legal protection of online brands?
People receive a sense of a business’s brand identity when they see it. It relates to a customer’s high level of trust, competency, and reassurance when interacting with a firm. A brand identity advancement can help protect a company’s most precious asset : Brands goodwill, Brands IP (intellectual property).
5. What is brand identity theft?
Hackers steal and use personal information such as the governmental identification number and data of brand as well as the logo of a brand name with a similar representation, to obtain the brand identity.
6. Can brand identity be protected under trademark and copyright or any other legal provisions?
Yes, Trademarks safeguard brand logos and designs. They are protected by copyright because they are intellectual works of art. That which makes a firm or a brand identifiable.
7. Can you trademark brand identity?
Yes, To be eligible for trademark protection, the brand, logo, tagline, or brand identity component must be unique, distinctive, and unique.
8. How can a brand name be protected?
To protect the intellectual property, create a distinctive mark, establish your trademark, and give your brand a name.
9. What are trademarks for brand identity?
Trademarks allow businesses to claim ownership of specifics, words, representations, and designs. If you like, you may even patent your brand phrase. A trademark allows you and your company to protect your ip rights (such as a brand) from being used by another commercial entity.
10. Is brand different from trademark?
As a result, the brand connects the marketing strategy with positive images and experiences. Contrarily, a trademark is a legally protected word or phrase that identifies a company and its goods.
11. How can I protect my brand legally?
Some of these methods are legal redress for existing brand theft, and some are preventative measures.
● The filing of a trademark application.
● Validated social media profiles, as well as community management.
● Implement a series set brand rules for yourself.
● Create a logo and use it frequently.
● Act swiftly in the case of a trademark infringement.
● Make a memorable brand identity.
12. Is brand protection absolutely required for your company legally ?
If a company offers any trademarked products, it should carefully consider developing a brand security policy. Developers, brand value companies, and design-focused firms are three types of organisations that really are especially vulnerable to counterfeiters. These organisations are vulnerable to copying because of the significant effort and time they put into building a well-known brand, doing product research and development, and meticulously creating products before they are ever released, so brand protection is absolutely required for the company legally.
13. What are the legal significance of registering for a trademark ?
● The Registered Owner of a trademark can build and protect the goodwill for his products and services.
● Prohibit other traders from being used their trademark unlawfully, sue for damages, or have violating goods or labels destroyed.
● For delivering services to businesses inside the areas of trademark choice, registration, and protection, legal professionals are compensated. Purchasers of goods and services, as well as consumers of goods and services, are offered options from which to pick.
● Registering a trademark for the brand of a company raises the value and protection in legal terms.
14. What are the legal issues surrounding brand elements point it out ?
● Maintaining commercial secrecy.
● Enforcement of IP ownership agreements in writing.
● As soon as feasible, trademark any designs and intellectual property.
● Conduct a clearance search.
● Protect your brands by filing a trademark application.
● Make sure you’ve covered all of your brand’s bases and legalities.
15. What is the provision for punishment under IT Act for Brand identity theft?
Under 66 C of IT Act 2000, If anyone uses other persons personal signature, password, or other uniquely identify feature fraudulently or dishonestly faces a maximum sentence of three years in prison and a fine of Rs. one lakh.
Conclusion
Trademarks are being used to legally defend important aspects of a brand that add significant value. Taking into account the cost of a particular brand, and the logo design. Advertisements, marketing campaigns, or other circumstances regularly employ these. Suddenly, an opponent with the same (or almost identical) brand identity enters the market. Customers are bewildered, and as a result, sales drop. This circumstance would not have occurred if brand identifying characteristics had not been trademarked. This highlights the significance of intellectual property laws and rights. Theft of brand identities has risen drastically in the last year. Criminals carry out impersonation assaults on businesses in order to profit unlawfully from the brand’s reputation, causing severe damage to the firms involved. Brand theft and brand identity theft are both criminal impersonations of a company. From a modest sole proprietor to a large business, any organization with identifying documents and a destination address could be a victim. Copyright laws, patents, and trademark are the most typical aims of brand protection, but some intellectual property, including such invention rights & trade dress, may be included. The major driving force behind all of this is possibly one of the most precise and powerful techniques now available, which ensuring that trademarks are protected from brand identity theft through applying as many online security measures as possible. The only reason for this is to prevent imitation of online brand identification. The internet offers a lot of freedom and opportunities for expanding and promoting a business online, but also has certain drawbacks. Unless you already own a trademark and want to lawfully sell it, you’ll need to make sure it’s protected from malicious purpose. The most important step in building a brand is to obtain a domain. It comes with a lot of benefits. When you are using name registrars to protect your brand, you may choose from a variety of global & generic domains offered in a multitude of packages.
Authored By: Adv. Anant Sharma & Aparajita Singh