Legal Question in Intellectual Property in India

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.