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Trademark Live

Sections 52-54 of the Trade Marks Act, 1999: Infringement Proceedings by Registered and Permitted Users

Section 52: subject to any agreement between the parties, a registered user may sue for infringement in his own name as if he were the proprietor, making the registered proprietor...

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Published
October 1, 2026
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Last updated: October 2026Verified against: Government sources

These three short sections answer a practical question for every licensing arrangement: who can sue an infringer, and what can a licensee do with its rights? A registered user may sue in its own name, a permitted user who is not registered may not sue at all, and a registered user cannot assign or transmit its right to use the mark.

Section 52(1): a registered user may sue

"Subject to any agreement subsisting between the parties, a registered user may institute proceedings for infringement in his own name as if he were the registered proprietor, making the registered proprietor a defendant and the rights and obligations of such registered user in such case being concurrent with those of the registered proprietor."

FeatureWhat the text says
WhoA registered user
Where it can be limited"Subject to any agreement subsisting between the parties"
Name of the plaintiffThe registered user's own name
Proprietor's positionMade a defendant
Nature of rightsConcurrent with the proprietor's

Two things follow. First, the licence agreement can cut back or shape this right, so a licensee should read its agreement before planning a suit. Second, the registered proprietor is joined as a defendant, not as a co-plaintiff. The section does not say the proprietor must consent. Whether the licensee's own damage, or an injunction, is available is a matter for the infringement provisions and the court; see Section 29.

For the commercial side of licensing and what to put in the agreement, our trademark infringement notice service can help you decide who should send the notice and who should be the party to any suit. The guide to trademark infringement: what constitutes it and the remedies gives the wider picture.

Section 52(2): costs for the proprietor

"Notwithstanding anything contained in any other law, a registered proprietor so added as defendant shall not be liable for any costs unless he enters an appearance and takes part in the proceedings." The proprietor who is joined only because the section requires it is therefore protected from a costs order unless he chooses to participate. A proprietor who wants to support the suit, or contest it, appears and takes part, and then the protection falls away.

Section 53: no right for the second kind of permitted user

"A person referred to in sub-clause (ii) of clause (r) of sub-section (1) of Section 2 shall have no right to institute any proceeding for any infringement."

Section 2(1)(r) defines "permitted use". Its first limb is use by a registered user. The second limb, sub-clause (ii), is use by a person other than the registered proprietor and registered user, who is connected in the course of trade with the goods or services, uses the mark by consent of the registered proprietor in a written agreement, and complies with the conditions or limitations of the registration. Section 53 takes the right to sue from that second kind of user.

The practical lesson is plain. A licensee who is merely a permitted user under a written agreement, and is not on the register, cannot bring an infringement proceeding in its own right. A licensee who is registered as a registered user under section 49 can, subject to the agreement. If a licensee needs to be able to act against infringers, registration is one of the reasons to consider it. See Section 48 and Section 49. The definition of "permitted use" is covered in Section 2 definitions.

Section 54: no assignable or transmissible right

"Nothing in this Act shall confer on a registered user of a trade mark any assignable or transmissible right to the use thereof."

A registered user cannot pass on its right to use the mark by assignment, and the right does not pass by transmission. The registered user is a licensee whose position comes from the proprietor.

Explanation I: two cases that are not an assignment or transmission

The right of a registered user is not deemed to have been assigned or transmitted within the meaning of this section in two cases.

CaseTreatment
(a) The registered user, being an individual, enters into a partnership with another person for carrying on the business concernedThe firm may use the mark, if otherwise in force, only for so long as the registered user is a member of the firm
(b) The registered user, being a firm, undergoes a change in its constitutionThe reconstituted firm may use the mark, if otherwise in force, only for so long as any partner of the original firm at the time of its registration as registered user continues to be a partner of the reconstituted firm

Explanation II says that "firm" has the same meaning as in the Indian Partnership Act, 1932.

So a small business that is registered as a registered user and then takes in a partner does not break section 54, but the firm's right is tied to the continued membership of the original registered user or of an original partner.

Example. Mishra Spices, a sole proprietor, is a registered user of the mark "Ruchi" under a licence from Ruchi Foods Ltd. Mishra takes a partner and carries on the business as Mishra & Co. Under Explanation I(a), this is not treated as an assignment or transmission, and the firm may use the mark only for so long as Mishra remains a member. If Mishra leaves the firm, the firm's permission to use the mark ends with that membership.

How the three sections fit together

  1. Registered user: can sue in its own name, with the proprietor joined as defendant (section 52).
  2. Permitted user under a written agreement, not registered: cannot sue (section 53).
  3. Registered user's right to use: cannot be assigned or transmitted (section 54), subject to the partnership explanations.
  4. Certification trade marks: section 69 lists sections 52 and 54 among those that do not apply to them. Section 53 is not on that list. See Sections 69-70.

Practical points

  • Read the licence agreement before suing; section 52(1) is subject to it.
  • Decide who needs to be a plaintiff: if the proprietor wants to control the litigation, it may be better for it to sue directly.
  • Register the licensee if you want it to have the section 52 right.
  • Do not plan an assignment of a licence by a registered user; section 54 closes that door.
  • Watch partnership changes and re-check the Explanation I limits.

Need help with an infringement or licence issue?

If a licensee is facing a copycat, or a proprietor wants to know who should act, the answer depends on the register entry and the agreement. Our trademark infringement notice team can review both, send the notice and advise on the next step.

Key takeaways

  • A registered user may sue for infringement in its own name, subject to the agreement, with the registered proprietor as a defendant.
  • The rights of the registered user and proprietor in such a case are concurrent.
  • The proprietor so added is not liable for costs unless he enters an appearance and takes part.
  • A person in sub-clause (ii) of clause (r) of section 2(1) has no right to bring infringement proceedings.
  • A registered user has no assignable or transmissible right to use the mark.
  • A partnership entered into by an individual registered user, or a change in a registered user firm, is not an assignment, but the firm's right is tied to the original registered user or partner.

Read next

Disclaimer: Based on the Trade Marks Act, 1999 as amended by the Tribunals Reforms Act, 2021 and the Jan Vishwas (Amendment of Provisions) Act, 2023, as consulted on 1 October 2026. Forms, fees and procedure are set by the Trade Marks Rules, 2017 as amended from time to time. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Sections 52-54

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Can a licensee sue for infringement?

A registered user can, in its own name, subject to the agreement and with the registered proprietor as defendant. A person in the second limb of "permitted use" cannot.

Who pays the costs if the proprietor is joined as defendant?

The proprietor is not liable for costs unless he enters an appearance and takes part in the proceedings.

Read the notice the day it arrives; most of the damage is done by the weeks it sits unopened.

— TaxClue Compliance Desk

Sections 52-54: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Vikas Sharma Verified expert Tax & Compliance Expert

Experienced in company registration, GST, trademark, and compliance. Helping Indian businesses stay compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 5 questions readers ask most on this topic.

A registered user can, in its own name, subject to the agreement and with the registered proprietor as defendant. A person in the second limb of "permitted use" cannot.

The proprietor is not liable for costs unless he enters an appearance and takes part in the proceedings.

No. Section 54 says nothing in the Act gives a registered user an assignable or transmissible right to use the mark.

It is not treated as an assignment or transmission, but the firm may use the mark only for so long as the registered user remains a member of the firm.

Section 69 lists sections 52 and 54 as not applying to certification trade marks. Section 53 is not on that list.