Chapter XII - Offences, Penalties and Procedure
Section 104
Section 104: Selling falsely marked goods or services
Selling, hiring or supplying the specified falsely marked goods or services can create exposure even where the seller did not make the mark.
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Need advice on Section 104?
This article is for general information. Refer to the Trade Marks Act, 1999 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Any person who sells, lets for hire or exposes for sale, or hires or has in his possession for sale, goods or things, or provides or hires services, to which any false trade mark or false trade description is applied or which, being required under section 139 to have applied to them an indication of the country or place in which they were made or produced or the name and address of the manufacturer, or person for whom the goods are manufactured or services provided, as the case may be, are without the indications so required, shall, unless he proves,—
(a) that, having taken all reasonable precautions against committing an offence against this section, he had at the time of commission of the alleged offence no reason to suspect the genuineness of the trade mark or trade description or that any offence had been committed in respect of the goods or services; or
(b) that, on demand by or on behalf of the prosecutor, he gave all the information in his power with respect to the person from whom he obtained such goods or things or services; or
(c) that otherwise he had acted innocently, be punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees:
Provided that the court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months or a fine of less than fifty thousand rupees.
Rule and business relevance
The provision states alternative grounds the accused may prove, including reasonable precautions with no reason to suspect, supply-source information on demand, or otherwise acting innocently. The ordinary punishment is six months to three years and ₹50,000 to ₹2 lakh, with a recorded-special-reasons proviso.
Limits and related provisions
Do not assume a reseller is automatically immune or omit the proof required by the relevant defence. Keep supplier identity, due-diligence and transaction records.
Hypothetical business example
Hypothetical example: A retailer accused of selling falsely marked stock produces purchase records and evidence relevant to the precise statutory defence it relies on.
Practical decision flow
Trace the stock or service and alleged false mark or missing origin indication.
Identify the applicable defence and collect supporting records.
Provide required source information and obtain advice on the prosecution.
Applying the Act and current procedure
Read the statutory rule together with the applicable Trade Marks Rules, current Registry directions and the facts of the particular mark. Forms, fees and procedural requirements should be checked against their current official source before filing.
Practical checklist
Do
- Trace the stock or service and alleged false mark or missing origin indication.
- Identify the applicable defence and collect supporting records.
- Provide required source information and obtain advice on the prosecution.
Avoid
- Do not assume a reseller is automatically immune or omit the proof required by the relevant defence. Keep supplier identity, due-diligence and transaction records.
Glossary
- Reseller exposure
- The conduct covered even when the seller did not manufacture the goods.
- Innocent conduct
- The express defence in clause (c), subject to proof.
Frequently asked questions
Can a seller be prosecuted without making the false mark?
The section covers the listed sale, hire and service conduct.
Are supplier records useful?
Yes. Clause (b) concerns information within the accused’s power about the source.
Can the court impose below-minimum punishment?
The proviso permits it for adequate and special reasons recorded in the judgment.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026