Chapter VI - Use of Trade Marks and Registered Users
Section 46
Section 46: Proposed company and registered-user use
An intended company assignment or registered-user arrangement can satisfy the proposed-use setting described in this provision.
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Need advice on Section 46?
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
(1) No application for the registration of a trade mark in respect of any goods or services shall be refused nor shall permission for such registration be withheld, on the ground only that it appears that the applicant does not use or propose to use the trade mark if the Registrar is satisfied that—
(a) a company is about to be formed and registered under the Companies Act, 1956 (1 of 1956) and that the applicant intends to assign the trade mark to that company with a view to the use thereof in relation to those goods or services by the company, or
(b) the proprietor intends it to be used by a person, as a registered user after the registration of the trade mark.
(2) The provisions of section 47 shall have effect, in relation to a trade mark registered under the powers conferred by this sub-section, as if for the reference, in clause (a) of sub-section (1) of that section, to the intention on the part of an applicant for registration that a trade mark should be used by him there were substituted a reference to the intention on his part that it should be used by the company or registered user concerned.
(3) The Registrar or the High Court, as the case may be may, in a case to which sub-section (1) applies, require the applicant to give security for the costs of any proceedings relating to any opposition or appeal, and in default of such security being duly given, may treat the application as abandoned.
(4) Where in a case to which sub-section (1) applies, a trade mark in respect of any goods or services is registered in the name of an applicant who, relies on intention to assign the trade mark to a company, then, unless within such period as may be prescribed or within such further period not exceeding six months as the Registrar may, on application being made to him in the prescribed manner, allow, the company has been registered as the proprietor of the trade mark in respect of those goods or services, the registration shall cease to have effect in respect thereof at the expiration of that period and the Registrar shall amend the register accordingly.
Rule and business relevance
The application is not to be refused on the stated non-use ground alone if the Registrar is satisfied about the intended company or registered-user use. The section adapts the non-use test, permits security for certain proceeding costs and requires the intended company to become registered proprietor within the prescribed or permitted period.
Limits and related provisions
This does not waive all registration conditions. The additional period allowed for recording the company cannot exceed six months; the original period is prescribed and must be checked in current rules. The quoted Companies Act 1956 reference must be read with the current corporate framework and savings.
Hypothetical business example
Hypothetical example: A promoter files intending to transfer the mark to a company being formed. The promoter tracks formation and title registration rather than leaving the mark indefinitely in a personal name.
Practical decision flow
Document the genuine intended company or registered-user use.
Check any security requirement and applicable non-use rules.
For a company assignment, meet the prescribed title-registration period and any lawfully granted extension.
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
- Document the genuine intended company or registered-user use.
- Check any security requirement and applicable non-use rules.
- For a company assignment, meet the prescribed title-registration period and any lawfully granted extension.
Avoid
- This does not waive all registration conditions. The additional period allowed for recording the company cannot exceed six months; the original period is prescribed and must be checked in current rules. The quoted Companies Act 1956 reference must be read with the current corporate framework and savings.
Glossary
- Intended user
- The company or registered user whose planned use is recognised in the provision.
- Prescribed period
- The period set by applicable rules rather than stated as a fixed duration here.
Frequently asked questions
Does this guarantee registration despite other objections?
No. It prevents refusal on the specified ground alone when the statutory conditions are met.
Is every delay in recording the company allowed?
No. The prescribed period and maximum further extension conditions must be observed.
Can security for opposition or appeal costs be required?
Yes. Subsection (3) provides for that and the consequence of default.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026