Trademark Infringement in Nepal

Illustrative scenario
Ms. Anjali Rajbhandari founded Gauriganga Brew, a speciality coffee brand registered with the Department of Industry (DOI) under the Patent, Design and Trademark Act, 2022 (1965). Six months after launch, a seller in Pokhara began using the name "Gauriganga Brew" and a near-identical logo on coffee packaging — including promotion on social media — causing demonstrable consumer confusion.
   Her legal counsel must address four immediate questions:
   ➔ Does the seller's conduct constitute trademark infringement under Nepalese law?
   ➔ Which provisions of the statute apply?
   ➔ What civil, criminal, and administrative remedies are available?
   ➔ What does relevant Nepali case law say about enforcement?

                                                                Governing Legislation

                    a. The Primary Statute- Trademark rights in Nepal are governed principally by a single Act:
    

Patent, Design and Trademark Act, 2022
पेटेन्ट, डि जाइन र ट्रेडमार्क र्क ऐन, २०२२ | Published 1965 A.D.

Commonly cited- PDTA

Administering authority
Department of Industry (DOI), Ministry of Industry, Commerce and Supplies

  The PDTA remains the operative legislation for trademark registration, infringement, and remedies in Nepal. No subsequent legislation has displaced it as the primary IP statute for marks.

                                                                         Statutory Provisions
Key Sections on Infringement and Remedies

Section 2- Defines "trademark" as any sign capable of distinguishing the goods or services of one enterprise from those of another, and "registered trademark" as a mark duly recorded in the Trademark Register maintained by the DOI.

Section 16- This is the core infringement prohibition.
The Act provides: "No person shall, without the consent of the registered owner or without transferring the ownership or obtaining a license from the registered owner, copy, use, or cause to be used a registered trademark."
Accordingly, it is unlawful, absent authorisation, licence, or transfer, to copy a registered mark, use it directly, or procure its use by others.
Section 17- It provides the operative test for infringement. Three conditions must be satisfied:
       ● The person uses a mark that is identical or deceptively similar to a registered trademark;
       ● The use is in relation to goods or services for which the mark is registered, or similar ones; and
       ● Such use is likely to confuse the public as to the origin, source, or quality of the goods.

Section 20- It empowers the competent court to grant the following relief:
      ● Interim and permanent injunctions to restrain continued infringement
      ● Damages for loss suffered by the trademark owner;
      ● Account of profits made by the infringer; and
      ● Orders for seizure, forfeiture, and destruction of infringing goods, labels, and packaging.

Section 21- Where infringement is willful, Section 21 provides for criminal liability including a fine of up to NPR 100,000, confiscation of infringing goods and tools, and in serious cases, imprisonment. Criminal proceedings run concurrently with civil remedies.
Section 21A- Added by amendment, Section 21A clarifies that a foreign trademark does not receive legal protection in Nepal unless it is registered with the Department of Industry. International brand owners must therefore ensure local registration to be entitled to the Act's remedies.

                                                          Supporting Legal Framework
                   The PDTA operates alongside several statutes that may be invoked to strengthen an enforcement strategy:

                                                                    Relevant Nepali Judicial Precedent 

a. Raja Flavours and Food LLP v. The Department of Industry ("TOOFAN") (Patan High Court · 2025)

Background 

Raja Flavours and Food LLP applied to register "TOOFAN" for food products. The DOI initially refused registration due to conflicting prior marks and procedural issues. 

Holding 

The Patan High Court clarified that registration may be granted where an applicant demonstrates distinctiveness and an absence of confusion with existing marks. The DOI must apply statutory criteria consistently and cannot arbitrarily reject applications that satisfy those requirements. 

Significance 

This decision confirms that registration is the gateway to enforceable trademark rights in Nepal, and that courts will scrutinize DOI decisions to ensure statutory compliance. It reinforces the centrality of distinctiveness and the adversarial role of courts in IP disputes. 

Prior Use vs. Registration ( Judicial Consensus · General Principle )

 "In Nepal, only registered trademarks are legally protected; prior use alone does not confer statutory trademark rights." 

Unregistered marks may pursue passing-off claims, but these carry a significantly higher evidentiary burden. Registration under the PDTA remains the primary and most reliable method of protection. 

Applying the Framework: Gauriganga Brew

                                                 Applying the statute to the scenario presented above:

                                                                   Step-by-Step Enforcement 

1. Preserve evidence 

   Screenshot infringing social media posts and marketplace listings with timestamps. Purchase a sample product and retain the receipt. Compile internal use records, invoices, packaging, marketing materials, and gather witness statements from confused customers. 

2. Issue a cease-and-desist letter 

   Reference the DOI registration number and cite Sections 16 and 17 specifically. Particularise the infringing acts with exhibits. Set a short deadline, typically seven days, and give notice of intended civil and criminal proceedings. 

3. File for civil relief
   Apply ex parte for an interim injunction under Section 20 to halt sales immediately. Pursue substantive proceedings for damages, account of profits, and destruction of infringing stock. 

4. Lodge a criminal complaint where warranted

   Where the evidence discloses deliberate counterfeiting, invoke Section 21 for criminal penalties, including fine and confiscation of goods and tools of production. 

5. Register with Customs 

   Record the mark with Nepal Customs under the Customs Act, 2064 (2007) to intercept future importation of infringing goods at the border, a preventive measure with low administrative cost. 

                                               Advisory :Practical Guidance for Brand Owners 

• Registration 

  Register early and completely. File with the DOI under the PDTA as early as possible. Foreign marks must also obtain local registration under Section 21A to be enforceable.

• Monitoring 

  Monitor the register and the market. Search the DOI register regularly for conflicting applications. Monitor online marketplaces, social media, and physical retail for unauthorised use.

• Records 

  Maintain evidence of use. Organize ongoing records of sales invoices, distribution agreements, labelling, marketing materials, export documents, and customer testimonials.

• Enforcement 

  Act promptly upon infringement. Preserve evidence before any contact with the infringer. Be prepared to seek an interim injunction under Section 20 without delay if goods are being actively sold.

• Strategy 

  Use a multi-pronged approach. Combine civil litigation, criminal complaints for willful acts, opposition proceedings, and customs registration. No single avenue is sufficient in isolation.

• Counsel 

  Engage qualified IP counsel early. Trademark disputes in Nepal are fact-specific and procedurally demanding. Early legal advice reduces the risk of evidentiary and procedural error. 

Closing Perspective 

Trademark infringement in Nepal is governed by a coherent statutory framework. Sections 16, 17, 20, and 21 of the Patent, Design and Trademark Act, 2022 (1965) provide the core provisions for establishing infringement and obtaining meaningful relief. The Patan High Court’s decision in TOOFAN and consistent judicial practice confirm that registration is the threshold requirement for statutory protection. 

For businesses, the most effective strategy combines:

1. Early and complete registration under the PDTA, including for foreign marks 
2. Continuous monitoring of the DOI register and relevant markets 
3. Meticulous records of the mark in commercial use 
4. Prompt, evidence-led enforcement using the full range of civil, criminal, and administrative remedies