Chapter VI - Use of Trade Marks and Registered Users
Section 54
Section 54: Non-transferability of registered-user rights
Registered-user status does not itself confer an assignable or transmissible right to use the mark.
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Need advice on Section 54?
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
Nothing in this Act shall confer on a registered user of a trade mark any assignable or transmissible right to the use thereof.
Explanation I.—The right of a registered user of a trade mark shall not be deemed to have been assigned or transmitted within the meaning of this section in the following cases, namely:—
(a) where the registered user being an individual enters into a partnership with any other person for carrying on the business concerned; but in any such case the firm may use the trade mark, if otherwise in force, only for so long as the registered user is a member of the firm;
(b) where the registered user being a firm subsequently undergoes a change in its constitution; but in any such case the reconstituted firm may use the trade mark, if otherwise in force, only for so long as any partner of the original firm at the time of its registration as registered user, continues to be a partner of the reconstituted firm.
Explanation II.—For the purposes of Explanation I, “firm” has the same meaning as in the Indian Partnership Act, 1932 (9 of 1932).
Rule and business relevance
The explanations preserve defined partnership situations without treating them as assignment or transmission. For an individual entering a firm, use lasts only while that user remains a member; for a reconstituted firm, at least one original partner at user registration must remain, and the right must otherwise remain in force.
Limits and related provisions
Do not treat these limited exceptions as permission to transfer the licence freely to any new entity. The agreement and statutory status still require review.
Hypothetical business example
Hypothetical example: An individual registered user forms a partnership. The firm examines the statutory condition that the registered user remain a member and that the right otherwise continue.
Practical decision flow
Identify the registered user and proposed change.
Test whether a specific explanation applies and its continuing-partner condition.
Check that use remains otherwise in force and complies with the agreement.
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
- Identify the registered user and proposed change.
- Test whether a specific explanation applies and its continuing-partner condition.
- Check that use remains otherwise in force and complies with the agreement.
Avoid
- Do not treat these limited exceptions as permission to transfer the licence freely to any new entity. The agreement and statutory status still require review.
Glossary
- Non-transferable user right
- The lack of assignability or transmissibility conferred by the Act.
- Continuing partner condition
- The individual or original-partner link required in the specified firm situations.
Frequently asked questions
Can registered-user rights freely be sold to another business?
The Act does not confer an assignable or transmissible use right under this section.
Can an individual’s partnership use the mark in the stated setting?
Yes, only while the identified conditions continue.
Does any partner in a reconstituted firm suffice?
The explanation requires a partner from the original firm at its registration as registered user to continue.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026