A partner quietly registered the firm’s brand in his own name. When the partnership broke up, he claimed the mark was his. A single balance-sheet entry proved otherwise.
The facts
A partnership formed in 2004 used the mark “BAWA / BAWA FEED” for cattle and poultry feed. One partner (the respondent) filed trademark applications in Classes 31 and 35 claiming use from 1 April 2001, and the marks were registered in late 2005. After partners departed and dissolution deeds were executed (2006 and 2010), the petitioner filed a Form TM-24 assignment request and sued for injunctive relief.
The issue
“Where a partner claims to be proprietor of trademarks and the same is used for partnership business, whether ownership rests with the partner or with the partnership.”
Key provisions: Section 14 of the Partnership Act, 1932 (property of the firm) and Section 18 of the Trade Marks Act, 1999 (who may apply as proprietor).
The arguments
- Petitioner (firm): the respondent registered the mark in his individual name but using the firm’s address, without disclosing the partnership; and the mark was first used only after the partnership began. A ₹10,000 entry in the firm’s balance sheet matched the trademark registration cost — evidence of partnership expenditure.
- Respondent (partner): he claimed to have conceived and used the mark since 2001 but lacked documents (small business), and said the registration during the partnership meant the petitioner knew of it.
The decision
The court found for the firm. The balance-sheet entry (₹10,000, matching the 2005 filing year and registration cost) established the trademark as a partnership asset created during the partnership. The respondent could not substantiate his claimed 2001 use. So the registration was cancelled for misstatements, and the petitioner’s TM-24 assignment request was granted.
The takeaways
- Use for the firm + firm’s money = firm’s asset. A mark developed with partnership funds for partnership business belongs to the firm, regardless of whose name is on the register.
- Accounting records are powerful evidence. A balance-sheet entry decided ownership here.
- Register in the right name. Clarify at the outset whether a mark is a partner’s personal asset or a firm asset — and document it.
Frequently asked questions
Who owns a trademark used for a partnership’s business? Where the mark is developed with the firm’s funds for the firm’s business, it is generally a partnership asset — even if registered in a partner’s individual name.
What decided the BAWA case? A ₹10,000 balance-sheet entry matching the registration cost, showing the mark was a partnership asset; the partner’s claimed prior personal use was unproven.
Can a partner register the firm’s mark in his own name? He can file it, but if it is a firm asset the registration can be cancelled for misstatement and reassigned to the firm.
How do partners avoid this dispute? By agreeing and documenting at the outset whether a mark is personal or a firm asset, and registering it accordingly.
Legislation referred to
- The Trade Marks Act, 1999
- The Indian Partnership Act, 1932