Section 46

46. Proposed use of the trademark by the company to be formed, etc.—

(1) No application for the registration of a trademark in respect of any goods or services shall be refused nor shall permission for such registration be withheld, on the ground only that it appears that the applicant does not use or propose to use the trademark if the Registrar is satisfied that—

(a) a company is about to be formed and registered under the Companies Act, 1956 (1 of 1956) and that the applicant intends to assign the trademark to that company with a view to the use thereof in relation to those goods or services by the company, or

(b) the proprietor intends it to be used by a person, as a registered user after the registration of the trademark.

(2) The provisions of section 47 shall have an effect, in relation to a trademark registered under the powers conferred by this subsection, as if for the reference, in clause (a) of sub-section (1) of that section, to the intention on the part of an applicant for registration that a trademark should be used by him there were substituted a reference to the intention on his part that it should be used by the company or registered user concerned.

(3) The tribunal may, in a case to which subsection (1) applies, require the applicant to give security for the costs of any proceedings relating to any opposition or appeal, and in default of such security being duly given, may treat the application as abandoned.

(4) Where in a case to which subsection (1) applies, a trademark in respect of any goods or services is registered in the name of an applicant who relies on intention to assign the trademark to a company, then, unless within such period as may be prescribed or within such further period not exceeding six months as the Registrar may, on the application being made to him in the prescribed manner, allow, the company has been registered as the proprietor of the trademark in respect of those goods or services, the registration shall cease to have effect in respect thereof at the expiration of that period and the Registrar shall amend the register accordingly.