Legal Question in Intellectual Property in India
Assignor's Lien
We thank you for the prompt reply received by me yesterday regarding Assignor's Lien.
Further to the said reply:
Does the Assignor have lien over the delivered deliverables (A copy or counterpart of the Deliverables is also retained by the Assignor) for non payment of Contract Price? Does any Authority under the Trade Mark Act have the powers aforesaid? Can the Assignor seek injunction against the Assignee restraining from using the Deliverables? Case laws if any?
1 Answer from Attorneys
Re: Assignor's Lien
There is no specific provision in the Trademarks
Act that the assignor will have lien over delivered
deliverables on account of failure of Assignee to
pay contract price. The Authority under the
Trademarks Act, at the most refuse to register the
Deed of assignment / licence, until the competent
court decide the rights and obligations of Assignor
and Assignee. The Assignor can approach competent
court for injunction, breach of contract by
Assignee, declaration, seizure of goods, etc. as
the Assignor has monopoly and exclusive rights
over his intellectual property [the rights-in-rem].
The fact of breach of contract by Assignee for
failure to pay contract price to Assignor shall be
informed to Registrar of Trademarks, so that the
Deed of Assignment / licence shall not be
registered by Registrar in favour of Assignee.
In other words, the status quo will be maintained
as if there is no Assignor and Assignee - only
owner of intellectual property on one side and
infringer on other side. However, the best course
will be to approach competent court for relief
and remedy against Assignee.
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