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Foreign Trademark Registration in Nepal – 11 Free Details

by | Jul 8, 2020 | Legal

Foreign Trademark Registration in Nepal | Trademark Registration in Nepal

  • Relevant Law: Patent, Design and Trademark Act, 2022(1965)
  • Trademark is a word, symbol or picture or combination thereof to be used by any firm, company or individual in its product or services to distinguish them with the product or services of others.
  • Section 21(b) of the Act states that rights over foreign trademarks can’t be claimed or acquired in Nepal without registering such foreign trademark registration in Nepal is complete.

Documents required for foreign trademark registration in Nepal:

  • Application for trademark registration.
  • Notarized copy of trademark registration certificate (in foreign country).
  • Documents evidencing priority claim (priority registration).
  • 4 specimens of trademark {8 cm x 8 cm}.
  • Copy of passport of directors/owner.
  • Business registration certificate
  • Application fee payment receipt.
  • Local address and identity document of the local contact person in Nepal.
  • Power of Attorney authorizing local person to file Trademark application.

Details to be furnished:

  • Name, address, nationality, and citizenship/passport number of the applicant.
  • Details of trademark.
  • Two witnesses.
  • Address of the applicant.

Key pointers:

  • Notary of documents is compulsory for all documents except originals.
  • Signature of the applicant is required at the flip side of each paper or document.
  • Foreign trademark application can be made in English language.
  • Separate application should be submitted to register trademarks of goods or services placed in different categories.
  • Classification of goods and services as per the Nice classification, 1957.
  • There are 34 class and 11 services which is present in the schedule 5 of the Trademark Operation Directives issued by the Department of Industry.
    .

Process to register trademark:

  1. Submission of application and relevant documents at the Department of Industry.
  2. Investigation by the Department of Industry. The department shall check all the documents and if deemed fit, it shall receive the application and prepares it for further process. The department investigates on the Trademark application and checks if the mark violates any existing laws.
  3. Publication in the website of Department (www.doind.gov.np) and Intellectual Property Bulletin.
  4. After publication in the bulletin there’s a 90 days’ time period to claim or challenge the application. Any public can challenge the Trademark if the mark violates any existing laws or if it is pre-owned or registered already. Any one who wishes to challenge the application must furnish relevant proof to support their claim.
  5. Registration within 1 year if there is no opposition. If there is no opposition then the Department shall register the Trademark and issue a registration certificate. The process, however, is a lengthy process since the department must abide by the due process or the statutory process where certain time must be crossed.

Time limit to use trademark: After a TM is registered it must be brought to usage within 1 year.

Validity of the registered trademark: 7 years from the date of registration until it is renewed.

Renewal of the trademark:

  • Trademark should be renewed within 35 days’ from the expiry date of the validity of the trademark.
  • Right to the trademark holder to renew the trademark by making payment of penalty of NPR 1,000 within 6 months from the expiry of the said 35 days period and if not done in this period also then it itself become cancelled.

Government revenue:

  • Application Fee: NPR 1000 (approx. USD 10)
  • Registration Fee: NPR 5000 (approx. USD 50)
  • Renewal Fee: NPR 500 (approx. USD 5)
  • Trademark Search Fee: NPR 500

Grounds for refusals to register a trademark:

• Violation of the prestige and reputation of any individual or institution.
• If found that it has already been registered in the name of another person.
• If it adversely affects the public conduct or morality or the national interest.

Ground for punishment:

In the following cases, it is considered the laws have been violated, which is backed by penalty as per the law.

  • Using or copying trademark without transfer (authority) of the ownership.
  • Using the trademark that is cancelled by the Department of Industry.
  • Using unregistered trademark.
  • Fine up to NPR 100,000 (approx. USD 1,000) and/or confiscation of goods.

If you want to learn more about Foreign Trademark registration in Nepal, feel free to contact us.

#Foreign trademark registration in Nepal

Insolvency Laws in Nepal – Exclusive 4 Mins Read

Insolvency Laws in Nepal – Exclusive 4 Mins Read

by | Jun 6, 2020 | Business, Legal

Insolvency Laws in Nepal

WHAT IS INSOLVENCY?

  • Insolvency is the state of being unable to pay the money owed to a Creditor by a person or company.
  • The person or company who are in the state of insolvency are referred as insolvent.
  • As per the Insolvency Act, 2006 ‘Being Insolvent’ is a state of being unable, or appearing to be unable, to pay any or all of the debts due and payable to or payable in the future to creditors or a situation where the amount of liabilities of a company exceeds the value of the assets.

INSOLVENCY, LIQUIDATION AND BANKRUPTCY

Insolvency

Liquidation 

Bankruptcy
It is the financial state of a person (Individual or Corporate body) in which they are unable to repay debt owed to their creditors, in time, or at all. It is the legal ending of the company. The assets are discharged and are sold to repay the creditors and the business is closed and its name is removed from the Company Registrar’s Office. It is the legal declaration and final way out in Insolvency.

It is the legal process that happens when debtor declares when they can no longer pay debts off to creditor.

WHO CAN FILE APPLICATION FOR INSOLVENCY? (Insolvency laws in Nepal)

  1. A company itself that has become insolvent.
  2. Ten percent of the total creditors who has lent money to a company.
  3. Shareholders who have subscribed at least five percent of the total shares.
  4. Debenture holder who have subscribed at least five percent of the total debentures.
  5. A liquidator who is appointed to liquidate a company.
  6. In the case of a company carrying on any specific type of business, like Bank and Financial Institution, Insurance company has to obtain prior approval of its regulatory authority.

IMPORTANCE OF INSOLVENCY LAW IN THE POST COVID-19 NEPALESE ECONOMY

  • It provides the insolvent sometime to repay the debt.
  • It also provides the creditors a way to get back their money from the insolvent debtors.
  • It also allows debtors to obtain a fresh start by relieving them from their debt [Bankruptcy]

WHEN CAN A COMPANY CLAIM TO BE INSOLVENT?

  • If the General Meeting of shareholders adopts special resolution or a meeting of the Board of Directors decides that the company has become insolvent.
  • If there is a court order to repay debt within 35 days and if the debt is not paid off within that time.
  • If a company fails to pay the debt within 35 days after receiving the notice the creditor or if the debtor does not file application to dismiss the notice in the court.
  • If it is proved that the liability of the company exceeds the value of its assets or the company itself admits that it has become insolvent.

DOCUMENTS / EVIDENCES REQUIRED TO FILE APPLICATION

  • In case company itself files for Insolvency:
  1. Document certified by the Board of Directors declaring that the company has become insolvent.
  2. A special resolution adopted by the Board of Directors of the company to initiate the insolvency proceedings.
  3. Certified copies of the Balance-sheet and Auditor’s report of the company available at the time of filing application for insolvency proceedings.
  • In case the creditor of the company files for Insolvency:
  1. A statement of the Principal and Interest of the debt, which the creditor claims to be due and payable by the company.
  2. The date on which the company borrowed the debt claimed by the creditor stating the reason to take on the debt.
  3. Detail of the due amount and stating that that amount is payable immediately.
  4. Reason or ground on which creditor believes that the company has become insolvent.
  • When the liquidator makes the application:
  1. Evidence proving that a person is appointed as the liquidator by a company for the purpose of Insolvency proceedings.
  2. Opinion of the liquidator regarding the insolvency of a company filing application.
  • In case of shareholders and debenture-holders filing Insolvency application, an approval of the court to initiate the process is required and the conditions mentioned in the court approval letter must be complied.

INFORMATION REQUIRED TO FILE APPLICATION (Insolvency Laws in Nepal)

  • Name and address of the company
  • Reason to file
  • Financial standing
  • Document evidencing the company being insolvent
  • Other supporting documents
  • Name of the Applicants
  • Signature & Date

OUTCOME OF INSOLVENCY PROCEEDING

Depending upon the report submitted by the Liquidator, resolution adopted by the Creditor’s Assembly and the restructuring plan submitted by the company, the court gives following order within 7 days of the adopted resolution:

  • To immediately liquidate the company.
  • To implement the restructuring the program of the company.
  • To wait for some time & see if there’s probability for the progress of the company.
  • To extend the period of insolvency proceedings to get further report.
  • To dismiss the Insolvency proceeding.

For more information on Insolvency laws in Nepal and Bankruptcy law, please email us at info@lawchintan.com.

Or simply fill out the contact us form by clicking the link below and we will contact you.

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Patent Filing in Nepal – Exclusive 3 Mins Read

Patent Filing in Nepal – Exclusive 3 Mins Read

by | Dec 17, 2019 | Business, Legal

Patent Filing in Nepal | Filing a Patent application in Nepal

Patents are registered and regulated under the Patent, Design and Trademark Act, 2022 (1965) (“the Act”) in Nepal. The Act came in effect since 1965 and has seen very few updates and/or amendments ever since. Nepal also became one of the parties to the ‘Paris Convention for the Protection of Industrial Property, 1883 (“the Convention”) on June 22, 2001 and since then it is a member of the International Union for the Protection of Industrial Property, which is founded under the Convention.

As per Section 9 of the Nepal Treaty Act, 2047 (1990), any treaty ratified by Nepal Government upon its accession shall be applicable as good as law and has further provided that the Articles of the Treaty or Convention to which Nepal is a party and has ratified shall prevail even if such Articles are inconsistent with the laws of Nepal. It is also important to note that Nepal is not a member of Patent Cooperation Treaty, 1970.

The Act defines Patent as ‘any new idea or method relating to the design, operation or transmission any substance or group of substance, or any useful invention developed by some new principle or formula.

In Nepal, Patent Filing in Nepal can be done as either ‘Ordinary Application’ or ‘Conventional Application’. The former is considered as an unique Patent application being filed for the first time in Nepal, whereas the later is an application usually filed elsewhere (usually the member states of the Convention) and filed within 12 months from the date of initial application with an intent to create a “priority claim” in Nepal for the purposes of examining Novelty.

As per Section 3 of the Act, any person desirous to acquire right over any Patent has to register such Patent in their name. Procedures regarding filing of the Patent application is mentioned in Section 4 of the Act. The applicant has to submit the Application Form as prescribed under Annex 1 (A) along with the following documents at the IP Section of the Department of Industry (“DOI”).

  • Full name, address and profession of the inventor
  • Details of invention, operation & usage of Patent
  • Technical specifications, formulas or principles 
  • Designs, drawings of the invention along with details
  • Power of Attorney is application is being made by an intermediary on the behalf of inventor
  • Copy of the receipt of Patent registration in home country (for conventional applications)
  • Application fee of NPR 2,000 (approx. USD 18) for each Patent

After the application is duly registered, the DOI then inspects the Patent, tests for novelty and usage for the general public. If approved, the applicant receives a registration certificate.

Conditions in which Patent Filing in Nepal can’t be done:

  • If such Patent is already registered in a different person’s name
  • If the applicant is not the real inventor of Patent nor has acquired rights over such Patent
  • If the Patent is likely to adversely affect public health, conduct, morality or the national interest
  • If the Patent is against the prevailing laws 

Once registered, the DOI publishes such Patents in Nepal Gazette for the knowledge of general public (except for the Patents required to be kept secret for national interest). A registered Patent remains valid for 7 years. Patent owner can file for renewal within 35 days from the date of expiry of registration. An owner can renew Patent application for two tenures –  7 years duration for each tenure.  The renewal fee, for the first tenure is NPR 5,000 (approx. USD 44) per year (NPR 35,000 in total for the renewal of first 7 years).

Likewise, the  renewal fee for the second tenure is NPR 52,500 at the rate of NPR 7,500 per year. If in case the application for Patent renewal is not filed within 35 days after the expiry of registration date, an owner can still file for renewal within 6 months after the expiry of 35 days period by paying a fine of NPR 1,000. Failure to renew by 6 months time by paying fine shall ipso facto result in the cancellation of Patent registration.

If you want to learn more about Patent Filing in Nepal, feel free to contact us at info@lawchintan.com or call us at +977 9866556697.

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Social Security Fund in Nepal – Exclusive 2 Mins Read

Social Security Fund in Nepal – Exclusive 2 Mins Read

by | Sep 27, 2019 | Legal

Social Security Fund in Nepal

Social Security Fund (SSF) is a newly introduced concept in Nepal. With the enactment of Social Security Act and Rules, the Government has implemented and enforced the SSF. However, many employers and employees are still confused and uninformed about the provisions regarding the SSF. At Chintan Law Associates, we have expertise in matters related with employment and labor law. We provide expert opinions and services to our clients in these matters. Below are some basic Q&As that shall help anyone trying to get information about SSF. It is now compulsory for all the employers, including the companies, firm, NGOs, INGOs, agencies to register at SSF and also deposit the required contribution of its employees.

  1. How can one participate in SSF?
    By visiting the website of SSF at www.ssf.gov.np one can register by clicking SOSYS online Registration after which a unique SSF number, username and password can be obtained. After this all the necessary details of employer and employee can be updated and uploaded online.

     

  2. What benefits can one obtain after participating in SSF?
    -Medical checkups and maternity security plan
    -Accidental and physically impaired Security plan
    -Dependent family security plan
    -Old age security plan

  3. How to deposit amount in SSF?
    Amounts can be deposited online in SSF through Connect IPS. SSF bears a call account in Nepal Bank Limited, having account number 00211606720012000002.

  4. Is it absolutely compulsory to participate in SSF?
    It is a compulsory to participate in the SSF pursuant to the Labour Act. However, in the writ petition filed by the employees of Banks, a joint bench of Supreme Court has issued an interim order on 3 August 2021 to make the participation optional until the final verdict is passed by the SC.

  5. What is the total contribution to be made in SSF?
    31% of the basic salary of an employee must be deposited in the SSF. 20% of which shall be borne by the employer and the remaining 11% shall be borne by the employee.

  6. What happens if an employee resigns from an enterprise and joins another enterprise?
    The social security number of such employee shall remain the same. Regular contribution shall have to be made even from a different entity.

  7. What if someone quits a job and starts own business?
    Self-employed persons can also be a part of SSF by depositing regular contribution. In case if someone quits an existing job and starts own business, such person can continue to contribute in SSF.
  8. Is it necessary to deposit 1% social security tax after participating in SSF?
    Not necessary. 1% social security tax is not required to be paid after contributing in the SSF.

  9. Until what age does one have to contribute in SSF?
    Until 60 years of age. One must contribute for 15 years regularly to get pension from SSF. If someone retires before contributing for 15 years, such employee shall receive lump sum.

For further information, feel free to contact us at info@lawchintan.com.

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