Bombay HC Rules: Permissive Use Ends Trademark Ownership Claims
Corporate restructurings often leave subsidiaries holding legacy brand names that belong to the parent entity. When permissive use expires, the subsidiary must cease all branding activity associated with the trademark. As affirmed by the Bombay High Court, goodwill generated under a licensed mark exclusively accrues to the registered proprietor. Claiming independent prior use under Section 34 of the Trade Marks Act is legally inconsistent if the party has already admitted to using the mark with the owner's permission, leading to an inevitable injunction.