Implications for Businesses as Indian Trademark Jurisprudence Finds Resonance in Nepal

WISECODE Take

Indian conglomerate ITC's victory against local business Sujal Foods at the Supreme Court of Nepal proves that earlier local trademark registration does not guarantee protection for bad-faith squatting. Many business owners falsely assume local filing secures absolute rights, ignoring the impact of transborder reputation. In decision 074-CI-0252 issued on July 8, 2024, Nepal's Supreme Court canceled the local CANDY MAN mark registered in 2003 and recognized ITC's CANDYMAN brand reputation established in India since 2001 via cross-border TV broadcasts. Drawing on Indian precedents, the court affirmed that local priority cannot override bad-faith adoption of foreign marks with established transborder fame. For businesses expanding across South Asia, regional media spillover can turn transborder reputation into a powerful defense against squatters. Conversely, local brands lacking cross-border media reach cannot rely on this precedent. First, document all cross-border advertisements, satellite broadcast records, and regional sales to build a solid evidence chain for transborder reputation. Second, conduct comprehensive regional trademark searches prior to market entry to avoid prolonged cancellation disputes. Establishing transborder reputation requires meticulous evidence accumulation, making cross-border media spillover an essential factor in trademark defense strategies.