Registration of the agreement, which justifies a security interest in the patent, is mandatory under the Patent Act 1970. Security interest or mortgages on a patent are not valid unless they are registered in writing and within six months (or within a maximum of six months over the total period, as permitted by the application) in accordance with section 68 of the Patent Act 1970, in writing and with the Comptroller General. The document must contain all the conditions that govern their rights and obligations. The application for registration of the document must be submitted to the patent holder in Form 16. The granting of the TM license is not a sale. Licensing only confers the right to use the mark, while ownership of the trademark belongs to the owner himself. The rights granted are time-limited rights and may extend to the right to use the trademark, sell the products, etc. The TM license may or may not be exclusive. It is desirable for the licensee to protect its know-how, including trademarks, trade secrets and other protected information, by entering into a confidentiality agreement or declaration of intent with the potential licensee.
In developing such agreements, it is essential to ensure their applicability under Indian contract law and relevant intellectual property laws and to ensure their impermeability. It may also be advisable to enter into such agreements with employees and other third parties or advisers of the licensee who may run into protected information. A mark may be granted for some or all covered products or services. The law of Section 50 provides for the modification or deletion of the registration of a registered user/taker on the grounds, among other things, that the registered user/taker has used the mark in a manner that is not in accordance with the agreement, or that the holder/user has not disclosed a substantial fact for such a registration, or that the provision of the goods quality agreement is not applied, or that circumstances have changed since the date of registration, etc.