Trademark Registration in Nepal

A trademark is a distinct signifier, be it a word, symbol, or insignia that identifies a particular product and sets it apart legally from other products on the market. A trademark exclusively identifies a product as belonging to a particular company and recognizes the company’s ownership of the brand. Trademarks are considered a form of intellectual property. Example:- Nike logo, Coca-Cola bottle etc.

Trademark rights in Nepal are governed by the Patent, Design and Trademark Act, 2022 (1965). This Act establishes the legal and procedural framework for the registration, protection, renewal, and enforcement of trademarks.

Department of Industry (“DOI”)under the Ministry of Industry, Commerce and Supplies of Government of Nepal registers and administers trademarks in Nepal.

Benefits of registering a trademark

Registering a trademark confers several significant legal and commercial advantages to rights holders:

1. Exclusive Proprietary Rights: – Trademark registration grants the proprietor the exclusive right to use the mark in connection with the designated goods or services. This exclusivity enables the owner to prevent third parties from adopting identical or deceptively similar marks.

2. Strong Legal Protection: – A registered trademark provides a strong legal basis for enforcement. The owner may initiate legal action against infringers and seek remedies such as damages, and confiscation of counterfeit goods pursuant to the governing legislation.

3. Enhanced Brand Recognition and Goodwill: – Registration strengthens brand identity in the marketplace, fostering consumer trust and distinguishing the owner’s products or services from those of competitors. It contributes to the development and preservation of commercial goodwill.

4. Valuable Intellectual Property Asset: – A registered trademark constitutes an intangible asset of the business. It may be licensed, assigned, franchised, or used as security, thereby generating economic value and supporting commercial transactions.

5. Prevention of Market Confusion and Unfair Competition
Trademark registration helps prevent the unauthorized adoption of marks that may cause consumer confusion or dilute brand distinctiveness, thereby promoting fair and competitive business practices.

Criteria for Trademark Application

A trademark must meet the following criteria:-

• The trademark must be capable of distinguishing ones goods or services from those of others.
• The mark cannot be identical or confusingly similar to an already registered mark.
• It should be not be deceptive or against public morality.
• It should not include national emblems, flags, or symbol.
• One must demonstrate a genuine intention to use the trademark in commerce.
• It must relate to the goods or services being provided.

Required Documents for Trademark Registration.

Applicants must prepare and submit the following documents:

• Application form according to Schedule-1(C) of The Patent, Design and Trademark Act, 2022.
• Clear representation of the trademark or logo.
• Copy of the applicant’s citizenship certificate or passport.
• Business registration certificate.
• Tax registration Certificate
• Power of Attorney (for foreign applicants.)
• Specification of goods/services to be covered by the trademark.
• Tax clearance certificate of the last fiscal year.
• 4 copies of the trademark label (logo/text/name/image).

Trademark Registration in Nepal.

• Step 1: Submission of Application for Registration before Department of Industry (DOI).
• Step 2: Preliminary Examination by DOI (DOI will check whether the proposed trademark is Similar to Already Registered Trademark or Contradicts with the Prevailing Law
• Step 3: Publication of Trademark in Industrial Property Bulletin (IP Bulletin which is published by DOI every 3 Months.)
• Step 4: Successful Trademark Registration in Nepal If Opposition isn’t received by Third Party (Petition for Opposition against Applied Trademark can be filed within 90 Days of Publication in the IP Bulletin.)

When a Trademark Can Be Refused

Under the Patent, Design and Trademark Act, 1965, a trademark will not be accepted if:

• It hurts the reputation or feelings of any person or organization.
• It is bad for the public, against good morals, or against the country’s interest.
• It damages or copies the reputation of someone else’s trademark.
• The same trademark is already registered by someone else.

Official Government Fees for Trademark Registration

The trademark registration process in Nepal incurs several official fees payable to the Department of Industry. These fees are prescribed under the Industrial Property Act, 2073 (2017) and its regulations, with different rates applicable based on the type of applicant and service requested.

Application Filing Fees

The initial filing fees for trademark applications in Nepal vary depending on whether the applicant is a domestic or foreign entity:

• For Nepalese individuals/companies: NPR 1,000 per class
• For foreign individuals/companies: NPR 2,000 per class
• For SAARC country applicants: NPR 1,500 per class

These fees must be paid at the time of submitting the trademark application to the Department of Industry. The fee structure follows the Nice Classification system, which categorizes goods and services into 45 distinct classes.

Registration Fees

Once a trademark application is approved, registration fees must be paid to complete the process:

• For Nepalese individuals/companies: NPR 5,000 per class
• For foreign individuals/companies: NPR 10,000 per class
• For SAARC country applicants: NPR 7,500 per class

The Industrial Property Act stipulates that these fees must be paid within 35 days of receiving the registration approval notice from the Department of Industry.

Renewal Fees

Trademark registrations in Nepal are valid for 7 years from the date of filing and require renewal to maintain protection:

• For Nepalese individuals/companies: NPR 5,000 per class
• For foreign individuals/companies: NPR 10,000 per class
• For SAARC country applicants: NPR 7,500 per class

Late renewal within the grace period incurs additional charges of 25% for the first three months and 50% for the next three months as prescribed under Section 23D of the Industrial Property Act.

FAQs on Trademark Registration Costs in Nepal

1. How much do foreign applicants have to pay?
   Foreign companies generally spend between NPR 45,000 and NPR 95,000 per class. This total includes official fees (NPR 12,000), attorney/agent charges (NPR 25,000–60,000), and document preparation expenses (NPR 8,000–23,000). Applicants from SAARC countries get slightly reduced government fees.
2. Are there extra costs involved in the trademark process?
   Yes, certain additional expenses may arise, such as fees for responding to objections (NPR 5,000–15,000), handling opposition cases (NPR 10,000–30,000), and document translation for foreign applicants (NPR 1,000–2,500 per page), as required under the Industrial Property Act.
3. What is the cost of renewing a trademark in Nepal?
   Renewal costs are NPR 5,000 per class for Nepali applicants and NPR 10,000 per class for foreign applicants, plus an additional charges for professional services. If renewal is late, surcharges apply: 25% for the first three months and 50% for the next three months.
4. Can trademark fees be paid in installments?
   No. The Department of Industry requires all trademark-related fees to be paid in one installment. Filing fees must be paid at the time of application, and registration fees must be cleared within 35 days of receiving the approval notice, as outlined in Section 18 of the Industrial Property Act.
5. Do service fees differ between trademark agents in Nepal?
   Yes. Professional fees vary widely. Domestic applications typically cost NPR 15,000–40,000, while foreign applications usually range from NPR 25,000–60,000. Larger or internationally connected law firms tend to charge higher rates than smaller firms offering basic services.
6. What if I miss the registration fee payment deadline?
   If the registration fee is not paid within 35 days of receiving the approval notice, the application is considered abandoned under Section 18(4) of the Industrial Property Act. To protect the mark, you must file a new application and pay all fees again.