CS Executive

CS Executive Company Law Important Questions and Answers

CS Executive: Company Law Important Questions and Answers

Those who want to become perfect in the CS Executive Company Law Syllabus can avail the CS Executive Company Law Important Questions provided below. Download the CS Executive Company Law Question and Answers available for free and get a grip on the concepts. CS Executive Programme: Company Law Important Chapters Questions and Answers Pdf, Notes, Study Material, Chapter Wise Weightage provided makes it easy for you to attempt the exam with confidence.

Chapterwise CS Executive: Company Law Questions and Answers

You can access the list of CS Executive Chapterwise Questions on Company Law available below during your preparation. Simply click on the links below and prepare accordingly the corresponding chapter.

Company Law Chapter Wise Weightage

Chapter 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
J D J D J D J D J D J D J D J D J D J D J D D
1 5 13 4 5 4 14 9 9 15 4 4 10 3 10 5 3
2 35 9 12 4 12 7 14 8 4 5 14
3 18 16 20 9 4 8 45 4 4 4 13 13 13 12 16 8 8 17 12 3
4 6 8 3 16 4 4 4 3 8 5
5 6 8 5 8 4 8 13 4 12 8 10 6 3
6 4 5 4 4 4 8 5 5 5 5 5 5 3 5 10
7 4 9 5 4 12 8 4 4 4 4 4 3 3 3 8
8 4 4 4 4 4 8 3 4 3
9 4 4 14 5 9 4 8 20 12 12 8 22 4 12 13 14 7 5
10 4 4 4 4 8 4 4 8 3
11 6 10 4 8 4 8 3 9 7
12 4
13 5 4 5 8 4 8 4 5 12 8 3 3 10 3
14 8 4 8 4 4 3 3 5
15 8 18 21 14 4 14 12 12 16 17 24 34 12 20 4 8 15 27 13 13
16 4 8 4 2 8 4 4 4 8 12 4
17 4 4 4 4 4 4 4 14 4 4 10 20
18 5 16 10 4 4 13 12 5 14 13 13 17 8 12 8 8 15 17 14
19 4 4 4 4 9
20 8 4 10
21 12

Summary

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CS Executive Financial and Strategic Management MCQ

CS Executive Financial and Strategic Management MCQ Questions with Answers | CS Executive FSM MCQ Pdf

CS Executive Financial and Strategic Management FSM MCQ Questions with Answers PDF Download are provided as per the latest CS Examination Pattern. Access the Financial and Strategic Management CS Executive MCQ Book Pdf with Answers and prepare offline too. Practicing the CS Executive Strategic Financial Management MCQ Question and Answers help you enhance your accuracy & speed as well to score good results in exams. All the MCQ on Strategic Financial Management with Answers PDF Download for CS Executive are given as per the new syllabus and after extensive study.

Financial and Strategic Management CS Executive MCQ Book Pdf | CS Executive FM MCQ

Make the most out of the Chapterwise CS Executive Financial Management MCQ and take your preparation to next level. Click on the quick links and prepare the concepts you are facing difficulties and overcome them.

MCQ on Strategic Financial Management with Answers PDF Download | Strategic Financial Management MCQ PDF

Financial Management MCQ

Strategic Management MCQ

CA Foundation Study Material

Financial and Strategic Management Chapter Wise Weightage

Chapter 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
J D J D J D J D J D J D J D J D J D J D J D D
1 10 8
2 3 3
3 2 1
4 6 2
5 3 1
6 3 2
7 7 7
8 4 8
9 4 4
10 5 7
11 11 15
12 2 2
13 2 3
14 6 4
15 6 8
16 10 8
17 8 9
18 8 8
Total 100 100

Wrapping Up

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CS Executive Jurisprudence, Interpretation & General Laws Important Questions

CS Executive: Jurisprudence, Interpretation & General Laws Important Questions and Answers

CS Executive Jurisprudence, Interpretation & General Laws Important Questions are provided in exam point of view. All the MCQ Questions provided here on Jurisprudence, Interpretation & General Laws are as per the latest syllabus trends and given by subject experts after ample research.  Learn all about the CS Executive Programme: Jurisprudence, Interpretation & General Laws Important Chapters Questions and Answers Pdf, Notes, Study Material, Chapter Wise Weightage. by referring to this page.

CS Executive: Jurisprudence, Interpretation & General Laws Important Questions and Answers

Below is the Compilation of Chapterwise CS Executive Jurisprudence, Interpretation & General Laws Questions which you can use to clear all competitive exams. Simply access them by clicking on the quick links and prepare the respective topics within.

Jurisprudence, Interpretation & General Laws Chapter Wise Weightage

Chapter 2014 2015 2016 2017 2018 2019 2020
D J D J D J D J D J D D
1 9 5 5 5
2 21 13 9 13
3 4 4 9 4
4 4 4 8 5
5 4 4 12 8
6 17 4 8 12
7 4 8 4 8
8 9 16 4 12
9 8 5 16 4
10 4 4 16 9
11 12 13 4 8
12 16 8 8
13 18 5 5 10 3 12 5 11 16 12 9 8
14 5 5 5 3 5 5 5 8 8 8 8
15 15 5 5 3 5 10 8 4 4
16 4 4 4 8
17 8 4 4 8

Final Words

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CS Executive Corporate and Management Accounting MCQ

Corporate and Management Accounting CS Executive MCQ Questions with Answers

Considering the needs of CS Students we have covered the CS Executive Corporate Management Accounting MCQ as per the new syllabus. We have provided the CS Executive Corporate and Management Questions with Answers in a lucid and systematic manner for both theory and practical questions. Access the Corporate and Management Accounting Multiple Choice Questions and Answers Pdf to resolve any queries and prepare accordingly. Know about Corporate and Management Accounting Chapter Wise Weightage in the below sections.

CS Executive Corporate and Management Accounting MCQ Questions with Answers PDF New Syllabus

Avail Chapterwise Corporate and Management Accounting CS Executive Objective Questions provided here. Just tap on the direct links available and make your preparation effective.

CA Foundation Study Material

Corporate and Management Accounting Chapter Wise Weightage

Chapter 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
J D J D J D J D J D J D J D J D J D J D J D D
1 3 4
2 2 3
3 8 4
4 1 1
5 1
6 3 2
7 6 5
8 1
9 1 2
10 3 6
11 5 3
12 8 7
13 7 3
14 3 11
15 4 3
16 4 9
17 4 6
18 2 4
19 6 6
20 6 4
21
22 2 1
23 6 6
24 2 2
25 4 2
26 4 4
27 4 2
Total 100 100

Conclusion

We as a team believe the information shed has been true as far as our knowledge is concerned. For any further assistance leave us your suggestions via the comment box. Bookmark our site to have the latest updates on CS Executive Corporate and Management Accounting MCQ PDF at your fingertips.

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CS Executive Tax Laws MCQ

CS Executive Tax Laws MCQ Questions with Answers | CS Executive Tax MCQ Book PDF

Students preparing for CS Executive Tax Laws will find the high-quality content on CS Executive Tax Laws MCQ PDF extremely helpful. You can find a pool of CS Executive Tax Laws Questions and Answers given after extensive study to meet the latest exam patterns and syllabus. Chapterwise CS Executive Huge Question Bank can help you cover the syllabus smartly and achieve good results in exams. Learn about the Tax Laws Chapter Weightage by going through further modules.

Tax Laws MCQ for CS Executive New Syllabus | Tax Laws CS Executive MCQs

Refer to the Chapterwise CS Executive Tax Laws MCQ and prepare whichever topic or chapter you face difficulty at first. In order to access them, you just need to tap on the quick links and prepare according to your choice from the CS Executive Tax MCQ Book PDF.

Tax Laws CS Executive MCQs | CS Executive Tax MCQ Book Pdf for June 2021

CA Foundation Study Material

Tax Laws Chapter Wise Weightage

Chapter 2014 2015 2016 2017 2018 2019 2020
J D J D J D J D J D J D D
1 7 6 3 6 4 2 6 4 6 3 1 2
2 6 2 4 3 4 4 4 5 2 4 3 4
3 8 5 5 7 5 9 9 2 2 4 4 3
4 4 2 3 3 2 3 3 3 4 4 4
5 6 10 8 6 4 10 8 10 9 11 10 8
6 4 9 4 5 4 3 4 7 1 6 3 4
7 5 4 4 5 4 9 6 5 3 2
8 2 1 2 2 2 4 2 2 2
9 3 2 4 5 5 4 2 5 4 1
10 6 6 3 7 4 4 9 6 7 4 3 3
11 4 2 1 4 5 6 2 2 4 3
12 4 1 2 2 3 3 2 1
13 3 4 4 2 4 3 3 1 3 1
14 3 3 3 3 4 3 3 5 5 3 3
15 1 2 1 1 1 2
16 6 1 7 8 4 2 5 4 1
17 6 6 6 4 7 1 3 3 5 4 6 2
18 2 2 4 5 2 2
19 2 1 5 1 3 2 1 6 4 3 1
20 3 3 2 2 3 2 3 6 2
21 30 30 30 30 30 30 30 30 30 30 46 43
22 4 7
Total 100 100 100 100 100 100 100 100 100 100 100 100

Final Words

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Return of Income – CS Executive Tax Laws MCQs

Return of Income – CS Executive Tax Laws MCQs

Students should practice Return of Income – CS Executive Tax Laws MCQ Questions with Answers based on the latest syllabus.

Return of Income – CS Executive Tax Laws MCQ Questions

Question 1.
Regular assessment means assessment made under
(A) Section 143(3)
(B) Section 144
(C) Both (A) and (B) above
(D) None of the above [Dec. 2014]
Answer:
(A) Section 143(3)

Question 2.
It is not mandatory for an assessee to file a return of loss if it pertains to
(A) Loss under the head ‘profits and gains from business or profession’
(B) Loss from maintenance of racehorses
(C) Loss under the head capital gains’
(D) Loss under the head income from house property’ [Dec. 2014]
Answer:
(D) Loss under the head income from house property

Question 3.
Any person who has not filed the return within the time allowed under section 139(1), 139(4) or within the time allowed under a notice issued by the Assessing Officer under section 142(1), may file a belated return u/s 139(4)
(A) Before the end of the relevant assessment year
(B) Before the completion of the assessment
(C) (A) or (B) above, whichever is earlier
(D) (A) or (B) above, whichever is later [Dec. 2014]
Answer:
(C) (A) or (B) above, whichever is earlier

Question 4.
In the case of an individual assessee, the return of income must be signed and verified by the following, except
(A) Individual himself
(B) Where he is absent from India, by some person duly authorized by him on this behalf
(C) Where he is mentally incapacitated from attending to his affairs, by his guardian or any other person competent to act on his behalf
(D) Spouse [Dec. 2014]
Answer:
(D) Spouse

Question 5.
If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may initiate proceedings of
(A) Re-assessment
(B) Regular assessment
(C) Self-assessment
(D) Best judgment assessment [Dec. 2014]
Answer:
(A) Re-assessment

Question 6.
A partnership firm whose sales turnover is ₹ 90 lakh has derived income from an industrial undertaking entitled to deduction u/s 80-IB.
The due date for filing the return of income for the A.Y. 2021-22 will be
(A) 31st July 2017
(B) 30th September 2017
(C) 31st October 2017
(D) None of the above [June 2015]
Answer:
(A) 31st July 2017

Question 7.
The ‘due date’ specified u/s 139(1) for filing the return of income in case of companies engaged in international transactions and who have to furnish a report u/s 92E is
(A) 31st July
(B) 31st August
(C) 30th September
(D) 30th November [Dec. 2015]
Answer:
(D) 30th November

Question 8.
A return of income when notified as defective, has to be rectified within
(A) 30 Days
(B) The financial year
(C) 15 Days
(D) 60 Days [Dec. 2015]
Answer:
(D) 60 Days

Question 9.
As per Section 234F of the Income Tax Act, 1961, where a person required to furnish a return of income u/s 139, fails to do so within the time prescribed time, he shall pay, by way of fee, a sum of if the return is furnished on or before the 31st day of December of the assessment year.
(A) ₹ 1,000
(B) ₹ 10,000
(C) ₹ 5,000
(D) ₹ 2,000 [Dec. 2015]
Answer:
(C) ₹ 5,000

Question 10.
Quoting of PAN is mandatory when a person is entering into the following transactions:
(A) Sale of immovable property of ₹ 5 lakhs or more
(B) Deposit of ₹ 50,000 or more in Post Office Savings Bank
(C) Deposit of cash aggregating ₹ 40,000 in one day in a bank
(D) Contract of sale and purchase of securities exceeding ₹ 2 lakhs [Dec. 2015]
Answer:
(C) Deposit of cash aggregating ₹ 40,000 in one day in a bank

Question 11.
XYZ Ltd. filed its return of income for the A.Y. 2021-22 on 1st February 2022. The return was selected for scrutiny assessment u/s 143(3).
The Assessing Officer is required to serve upon the assessee a notice u/s 143(2) up to
(A) 31st July 2022
(B) 30th September 2022
(C) 31st July 2022
(D) 30th September 2022 [Dec. 2015]
Answer:
(B) 30th September 2022

Question 12.
A partnership firm having 9 trucks engaged in the business of plying these trucks on hire is to file its return of income for the AY 2021-22 on the basis of provisions of Section 44AE.
The partnership firm is required to file its return of income in
(A) Form ITR-4
(B) Form ITR-3
(C) Form ITR-2
(D) Form ITR-4S [Dec. 2015]
Answer:
(B) Form ITR-3

Question 13.
A return filed by Ms. Mala was found to be defective. The Assessing Officer gave notice of the defect to the assessee.
The time limit for rectification of the defect is
(A) 30 Days
(B) 15 Days
(C) 45 Days
(D) 60 Days
Answer:
(D) 60 Days

Question 14.
Chand Ltd. filed its return of income on 7th December 2020 declaring a loss of ₹ 3,50,000.
Later, it noticed a claim of expenditure omitted in the return filed. The revised return
(A) Must be filed before 31st March 2022
(B) Cannot be filed
(C) Must be filed before 31st March 2021
(D) Can be filed before completion of the assessment [June 2016]
Answer:
(C) Must be filed before 31st March 2021

Question 15.
Rose Ltd. filed its return of income for the assessment year 2021-22 on 10th August 2021.
The notice under Section 143(2) for scrutiny assessment should be served on the assessee by
(A) 31st March 2022
(B) 31st March 2023
(C) 10th February 2022
(D) 30th September 2022 [June 2016]
Answer:
(D) 30th September 2022

Question 16.
Zeit Ltd. engaged in the manufacturing of cement also had windmills to generate power. The entire power generated by it was used by its wholly-owned subsidiary Zoom Ltd. The amount received for the said power supply was ₹ 7 Crore. Zeit Ltd. disclosed a total income of ₹ 10 Crore for the assessment year 2021-2022.
The due date for filing return of income by Zeit Ltd. is
(A) 31st July 2021
(B) 30th September 2021
(C) 31st October 2021
(D) 30th November 2021 [June 2016]
Answer:
(B) 30th September 2021

Question 17.
As per Section 139( 1), an individual other than an individual of the age of 60 years or more shall have to file a return of income if
(A) His total income exceeds ₹ 2,50,000
(B) His total income exceeds ₹ 3,00,000
(C) His total income exceeds ₹ 2,00,000
(D) His total income before allowing deduction under Sections 80C to 80U exceeds ₹ 2,50,000 [June 2016]
Answer:
(D) His total income before allowing deduction under Sections 80C to 80U exceeds ₹ 2,50,000

Question 18.
The due date of filing return of income for the assessment year 2021-22 in case of a working partner of a firm whose accounts are liable to be audited shall be
(A) 31 st July of the assessment year
(B) 30thSeptemberoftheassessment year
(C) 30th June of the assessment year
(D) 3 0th November of the assessment year in case it is required to furnish report referred to in Section 92E and 30th September of the assessment year in any other case [June 2016]
Answer:
(D) 3 0th November of the assessment year in case it is required to furnish report referred to in Section 92E and 30th September of the assessment year in any other case

Question 19.
For the previous year 2020-21, an assessee suffered a business loss of ₹ 2,50,000. His income from other sources is ₹ 1,80,000. His due date of return was 31st July 2021 but he submitted the return on 9th September 2021.
The assessee in this case
(A) Shall be allowed to carry forward the loss of ₹ 70,000
(B) Shall not be allowed to carry forward any loss
(C) Shall be allowed to set-off current year business loss to the extent of ₹ 1,80,000 but shall not be allowed to carry forward the balance loss of ₹ 70,000
(D) Shall not be allowed to set-off the business loss to the extent of ₹ 1,80,000 and would be liable to tax on ₹ 1,80,000 [June 2016]
Answer:
(C) Shall be allowed to set-off current year business loss to the extent of ₹ 1,80,000 but shall not be allowed to carry forward the balance loss of ₹ 70,000

Question 20.
The notice under Section 143(2) must be served within
(A) 12 months from the date of filing of return
(B) 12 months from the due date of filing the return under Section 139(1) or from the date of filing of return of income
(C) 6 months from the end of the financial year in which the return was furnished
(D) 6 months from the end of the month in which the return was furnished [June 2016]
Answer:
(C) 6 months from the end of the financial year in which the return was furnished

Question 21.
If there is an apparent error in the intimation dated 11th June 2020 issued u/s 143(1), the time limit for filing an application for rectification u/s 154 is available up to
(A) 31st March 2024
(B) 31st March 2025
(C) 31st March 2021
(D) 31st October 2020 [Dec. 2016]
Answer:
(B) 31st March 2025

Question 22.
Quoting of PAN is not necessary in the case of
(A) Purchase of immovable property valued at ₹ 50 lakhs
(B) Payment of hotel bills ₹ 10,000
(C) Deposit of ₹ 75,000 into a bank in a day
(D) Payment of ₹ 5,00,000 for purchase of shares of a company [Dec. 2016]
Answer:
(B) Payment of hotel bills ₹ 10,000

Question 23.
The last date of filing return by a company which is required to furnish report referred to in Section 92E is
(A) 31st July of the relevant assessment year
(B) 30th September of the relevant assessment year
(C) 30th November of the relevant assessment year
(D) 31st of the relevant assessment year [Dec. 2016]
Answer:
(C) 30th November of the relevant assessment year

Question 24.
Zeit & Co. is a partnership firm whose turnover for the previous year 2020-21 was ₹ 220 lakhs.
The ‘due date’ for filing the return of income of the firm is:
(A) 31st July 2021
(B) 30th September 2021
(C) 30th November 2021
(D) 31st March 2021 [June 2017]
Answer:
(B) 30th September 2021

Question 25.
Chatterjee filed his return of income for the assessment year 2021-22 on 10.6.2021. He is eligible to revise his return:
(A) Up to the end of the assessment year 2022-23
(B) Before the end of the assessment year 2021-22
(C) Before completion of assessment u/s 153
(D) Before issuing of notice u/s 148 [June 2017]
Answer:
(B) Before the end of the assessment year 2021-22

Question 26.
A fixed deposit of ₹ 90,000 made by Mr. P on 5.11.2015 was detected on 7.9.2020. The time limit for issue of notice u/s 148 is:
(A) 31.3.2021
(B) 31.3.2023
(C) 31.3.2025
(D) 31.3.2027 [June 2017]
Answer:
(A) 31.3.2021

Question 27.
An apparent error in the assessment order passed u/s 143(3) dated 15.11.2020 was noticed by the assessee in February 2021.
The time limit for seeking rectification of mistake is available up to:
(A) 31.3.2025
(B) 31.3.2024
(C) 31.3.2021
(D) 31.3.2022 [June 2017]
Answer:
(A) 31.3.2025

Question 28.
Mandatory filing of return of income by individuals will apply when the total income before deduction under the following section exceeds the basic limit chargeable to tax.
(A) Deduction under Chapter VI-A
(B) Deduction under section 35
(C) Deduction under section 86
(D) Deduction under section 37 [Dec. 2017]
Answer:
(A) Deduction under Chapter VI-A

Question 29.
Quoting of Permanent Account Number (PAN) mandatory when the cash deposit in a bank account exceeds:
(A) ₹ 9,999
(B) ₹ 19,999
(C) ₹ 49,999
(D) ₹ 99,999 [Dec. 2017]
Answer:
(C) ₹ 49,999

Question 30.
The assessee who has filed a return of income for A.Y. 2021-22 as per section 139(1) can file a revised return any time:
(A) Before 1 year from the end of the relevant assessment year.
(B) Before the end of the relevant assessment year or before the completion of the assessment whichever is earlier.
(C) Before the expiry of the relevant assessment year or before the completion of the assessment whichever is later.
(D) Before the completion of the assessment year. [Dec. 2018]
Answer:
(B) Before the end of the relevant assessment year or before the completion of the assessment whichever is earlier.

Question 31.
The due date for e-filing of return of income by a Charitable Trust claiming exemption under sections 11 and 12 for the assessment year 2021-22 is:
(A) 31 st March 2021
(B) 30th September 2021
(C) 31 st August 2021
(D) Between any time specified in (B) and (C) [Dec. 2018]
Answer:
(B) 30th September 2021

Question 32.
Any person who has not filed the return within the time allowed under section 139(1) may file a belated return:
(A) At any time before the end of the relevant previous year
(B) At any time before the end of the relevant assessment year
(C) Before the completion of the assessment
(D) At any time before the end of the relevant assessment year or before the completion of the assessment whichever is earlier [Dec. 2018]
Answer:
(D) At any time before the end of the relevant assessment year or before the completion of the assessment whichever is earlier

Question 33.
What are the items taken into consideration by the Assessing Officer (AO) while processing a return at the Centralised Processing Centre (CPC)?
(A) The total income or loss after making adjustments for any arithmetical error in the return
(B) An incorrect claim, if such incorrect claim is apparent from any information in the return
(C) The fee payable under section 234F (fee for default in furnishing return of income) in computing the tax
(D) All of the above
Answer:
(D) All of the above

Question 34.
Anil made the following transaction for the year ended 31st March, 20,19:
(a) acquired the immovable property for ₹ 6 lakh;
(b) made a term deposit (TDR) of ₹ 30,000 in a bank;
(c) paid ₹ 75,000 to a hotel for his birthday party and
(d) deposited ₹ 45,000 cash in his
Savings Bank (SB) account.
Quoting of PAN is mandatory in which of these transactions:
(A) Purchase of immovable property
(B) TDR with bank and deposit of cash in the bank
(C) Payment to the hotel for birthday party
(D) All the three above in A, B & C [June 2019]
Answer:
(C) Payment to the hotel for birthday party

Question 35.
A non-resident is not required to furnish return of income under section 139(1) if his total income during the previous year consists of:
(A) Income from Technical fee
(B) Income from Interest / Dividends
(C) Income from Royalty
(D) Income from House Rent [June 2019]
Answer:
(B) Income from Interest / Dividends

Question 36.
Hindu Undivided Family (HUF) of Vinay consisted of himself, his major son, minor son, and his wife. At the time of filing of return of income of the HUF for A.Y. 2021-22, Vinay was out of the country.
The return of income of the HUF can be signed in this case by:
(A) Karta
(B) Authorized Tax Consultant
(C) Major Son
(D) Minor Son [June 2019]
Answer:
(C) Major Son

Return of Income – CS Executive Tax Laws MCQs Read More »

Intellectual Property Laws – Setting Up of Business Entities and Closure Important Questions

Intellectual Property Laws – Setting Up of Business Entities and Closure Important Questions

Intellectual Property Laws – Setting Up of Business Entities and Closure Important Questions

Question 1.
What is meant by ‘Industrial Property under the Intellectual Property Rights (IPRs)? [June 2015 (3 Marks)]
Answer:
Legal scholars often make a distinction between intellectual and industrial property. Intellectual property covers copyright and related rights, whereas industrial property means patents, trademarks, trade secrets, and so on. Traditionally this distinction was made because industrial property rights were mostly used by industry, whereas intellectual property right was “only” for artists, writers, and other creative people.

Today the distinction between the two has almost disappeared. Most people use “intellectual property” as a catch-all term, including patents and other items that traditionally were considered “industrial property.”

Question 2.
Two persons applied for registration of the same trademark at the same time. In such a case, how the proprietor of the trademark will be decided? [June 2005 (5 Marks)]
Answer:
There cannot be two or more proprietors of the same trademark belonging to the same class.

There can be two or more proprietors of the same trademark in different classes of trademarks. Eg: Blackberry’s trademark belongs to mobile phones as well as textile and clothing as they both are of a different class.

But is if it is a well-known trademark then there cannot be another proprietor even if it belongs to a different class.

The proprietor of a trademark is decided by the date of usage of the mark by a person in business transactions. Although persons applied for registration of the same trademark at the same time the proprietorship is determined by its usage in a commercial transaction.

Question 3.
Explain the term ‘Well Known Trademark’ as per Trademark Act, 1999. [Dec. 2008 (3 Marks)], [Dec. 2014 (5 Marks)]
Answer:
Mark which is similar to a well-known trademark cannot be registered as a trademark under the Trademark Act, 1999.

Well, Known Trademark [Section 2(1 )(zg)]: A well-known trademark in relation to any goods or services means a mark which has become so to the substantial segment of the public which uses such goods or services such that the use of such mark in relation to other goods or services would be likely to be taken as indicating a connection in the course of trade or rendering of services between those goods or services and a person using the mark in relation to the first-mentioned goods or services.

Examples of well-known trademarks are Google, Tata, Yahoo, Pepsi, Reliance, etc. Further, under the principle of “Trans-border Reputation”, India has afforded protection to trademarks like Apple, Gillette, Whirlpool, Volvo, which despite having no physical presence in India, are protected on the basis of their trans-border reputation in India.

Question 4.
Distinguish between: Collective Trademark & Certification Trademark [Dec. 2009 (5 Marks)]
Answer:
Following are the main points of difference between collective trade-mark & certification trademark:

Points Collective Trademark Certification Trademark
Meaning A collective mark means a trademark distinguishing the goods or services of members of an association of persons which is the proprietor of the mark from those of others A certification mark is a mark used in commerce by a person other than its owner. The owner of the certification mark establishes standards for certification to identify that goods or products bearing the mark are of a particular type.
User Members of collectives use the collective mark to identify their goods and services and to distinguish their goods and services from those of non-members and indicate membership in the group A certification mark is a mark used in commerce by a person other than its owner.
Example Examples of collective trademarks include:

  • The “CA” device used by the Institute of Chartered Accountants.
  • The “CS” device used by the Institute of Company Secretaries.
Some examples of certification trademarks are ‘1ST, ‘Agmark’, ‘Woolmark’ etc.

Question 5.
Distinguish between: Trademark & Certification Trademark [Dec. 2010 (5 Marks)], [June 2013 (5 Marks)]
Answer:
Following are the main points of difference between trademark & certification trademark:

Points

Trademark

Certification Trademark

Meaning A trademark is a recognizable sign, design, or expression which identifies products or services of a particular source from those of others. A certification mark is a mark used in commerce by a person other than its owner. The owner of the certification mark establishes standards for certification to identify that goods or products bearing the mark are of a particular type.
User A person having a trademark can only use it or he can authorize others by license. A certification mark is a mark used in commerce by a person other than its owner.
Example Some of the well-known trademarks are Coca-Cola, Pepsi, Tata, etc. Some examples of certification trademarks are ‘IST, ‘Agmark’, ‘Woolmark’ etc.
Assignment A trademark can be assigned or transferred by its owner. A certification mark cannot be assigned or transferred.
Registration It is not obligatory upon a proprietor of a trademark to apply for registration. It is optional. A certification mark cannot be given to any product or service unless such certification mark is registered.

Question 6.
Distinguish between: Infringement of trademark and Passing off [June 2011 (5 Marks)]
Answer:
Following are the main points of difference between infringement of trademark and passing off:

Points Infringement of trademark

Passing off

Meaning Trademark infringement is a violation of the exclusive rights attached to a trademark without the authorization of the trademark owner or any licensees. Passing off is a common law tort, which can be used to enforce unregistered trademark rights. The law of passing off prevents one person from misrepresenting his goods or services as that of another.
Action The infringement action can be only in respect of a registered trademark. Passing off action can be taken in respect of registered trademark as well as for unregistered trademark.
What to establish The definition of ‘infringement’ is very wide. ‘Similarity’ and ‘likely to confuse’ is sufficient to establish infringement of the trademark. While for ‘passing off’ the mark should be ‘deceptively similar’.
Base for action For infringement action, one has proved a violation of his statutory right. For passing off action one has to show misrepresentation, deceit, or bad faith.

Question 7.
What do you understand by ‘Collective Trademark’? Also state the provisions applicable to the collective marks under the Trademark Act, 1999. [Dec. 2011 (5 Marks)]
Answer:
Collective Trademarks includes:

  • The “CA” device used by the Institute of Chartered Accountants
  • The “CS” device used by the Institute of Company Secretaries
  • The mark “CPA”, used to indicate members of the Society of Certified Public Accountants
  • The marks of various confederated lobby groups.

The “collective” itself typically does not sell goods under the mark but instead advertises or promotes the goods or services of its members under the mark.

Example: Turkey. The Perfect Protein (National Turkey Federation)

  • Association uses the mark to promote the interests of its members.
  • Members use the mark on their products to distinguish their products from those of non-members

Question 8.
State the absolute grounds for refusal of registration of a trademark. [Dec. 2013 (3 Marks)]
Answer:
Absolute grounds for refusal of registration [Section 9]: Following trademarks cannot be registered:
(a) Which are devoid of any distinctive character ie. not capable of distinguishing goods or services of one person from those of another person.
(b) Which consist exclusively of marks or indications which may serve in trade to designate the kind, quality, quantity, intended purpose, values, geographical origin or the time of production of the goods or rendering of the service or other characteristics of the goods or services.
(c) Which consist exclusively of marks or indications which have become customary in the current language or in the bonafide and established practices of the trade.

However, if a trademark has acquired a distinctive character as a result j of the use made of it or is a well-known trademark, its registration shall | not be refused.

Question 9.
Explain the meaning of the term ‘certification trademark’ under the Trademarks Act, 1999. [Dec. 2015 (3 Marks)]
Answer:
Certification Trademark [Section 2(1 )(e)]: Certification trademark to mean a mark capable of distinguishing the goods or services in connection with which it is used in the course of trade which is certified by the proprietor of the mark in respect of origin, material, mode of manufacture of goods or performance of services, quality, accuracy or other characteristics from goods or services not so certified and registerable as such in respect of those goods or services in the name, as proprietor of the certification trademark, of that person.

Some examples of certification trademarks are ‘1ST, ‘Agmark’ etc.

In simple words, a certification mark certifies the nature or origin of the goods or services on or in connection with which it is used. This includes, for example, region or location or origin, materials of construction, method or mode of manufacture of goods or provision of services, quality assurance, the accuracy of the goods or services, and any definable characteristic of the goods or services.

Question 10.
What is a ‘trademark’? Comment on the benefits of a trademark to all stakeholders. [Dec. 2016 (5 Marks)]
Answer:
A trademark is a recognizable sign, design, or expression which identifies products or services of a particular source from those of others.

A trademark may be located on a package, a label, a voucher, or on the product itself. A trademark symbolizes the business’s reputation. Trademark is the valuable property of any business. Some of the well-known trademarks are Coca-Cola, Pepsi, Tata, etc. It is intangible property.

Common benefits of trademark:

  • It identifies the goods/or services and their origin.
  • It guarantees its unchanged quality.
  • It advertises the goods/services.
  • It creates an image for the goods/services.

Question 11.
Pankaj, Director of M/s. Mustered Oil Manufacturing Company, seeks your advice for the selection of a trademark which he proposes to be used for its products. Describe various natures of trademarks and which trademarks are considered as strong in nature. [Dec. 2018 (5 Marks)]
Answer:
Following are the prerequisites for registration of a trademark to be registered,

  • The selected mark should be capable of being represented graphically (that is in the paper form).
  • It should be capable of distinguishing the goods or services of one undertaking from those of others.
  • It should be used or proposed to be used the mark in relation to goods or services for the purpose of indicating or so as to indicate a connection in the course of trade between the goods or services and some person have the right to use the mark with or without the identity of that person.

Any startup needs to be cautious in selecting its trade name, brands, logos, packaging for products, domain names, and any other mark which it proposes to use. You must do proper due diligence before adopting a trademark.

The trademarks can be broadly classified into the following five categories:

  1. Generic
  2. Descriptive
  3. Suggestive
  4. Arbitrary
  5. Invented/Coined

Generic Trademark: Generic mark means using the name of the product for the product, like “Salt” for salt.
Descriptive Trademark: Descriptive marks mean the mark describing the character of the products, like using the mark “Fair” for the fairness creams.

Suggestive Trademarks: Suggestive marks mean the mark suggesting the character of the products, like “Habitat” for home furnishings products. Arbitrary Trademarks: Arbitrary marks means mark which exists in popular vocabulary, but has no logical relationship to the goods or services for which they are used, like “Blackberry” for phones.

Invented/coined Trademarks: The invented/coined marks mean coining a new word that has no dictionary meaning, like “Adidas”.

The strongest marks that are easiest to protect are invented or arbitrary marks. The weaker marks are descriptive or suggestive marks that are very hard to protect. The weakest marks are generic marks that can never function as trademarks.

India follows the NICE Classification of Goods & Services for the purpose of registration of trademarks. The NICE Classification groups products into 45 classes (classes 1-34 include goods and classes 35-45 include services). The NICE Classification is recognized in the majority of the countries and makes applying for trademarks internationally a streamlined process. Every startup, seeking to trademark goods or services, has to choose from the appropriate classes, out of the 45 classes.

While adopting any mark, the startup should also keep in mind and ensure that the mark is not being used by any other person in India or abroad, especially if the mark is well-known.

Question 12.
Govind has newly started a ready-to-eat food products manufacturing company. He seeks your advice for the selection of a trademark; for his products. Brief him with an example on the following categories of trademarks referring to the provisions of the Trademark Act, 1999:
1. Generic marks
2. Descriptive marks
3. Suggestive marks
4. Arbitrary marks
5. Invented/Coined marks
Also, suggest to him which Categories or Categories are strong and which are weak with respect to the protection of Trademark rights. [June 2019 (5 Marks)]
Answer:
The trademarks can be broadly classified into the following five categories:

  1. Generic
  2. Descriptive
  3. Suggestive
  4. Arbitrary
  5. Invented/Coined

Generic Trademark: Generic mark means using the name of the product for the product, like “Salt” for salt.
Descriptive Trademark: Descriptive marks mean the mark describing the character of the products, like using the mark “Fair” for the fairness creams.

Suggestive Trademarks: Suggestive marks mean the mark suggesting the character of the products, like “Habitat” for home furnishings products. Arbitrary Trademarks: Arbitrary marks means mark which exists in popular vocabulary, but has no logical relationship to the goods or services for which they are used, like “Blackberry” for phones.

Invented/coined Trademarks: The invented/coined marks mean coining a new word that has no dictionary meaning, like “Adidas”.

The strongest marks that are easiest to protect are invented or arbitrary marks. The weaker marks are descriptive or suggestive marks that are very hard to protect. The weakest marks are generic marks that can never function as trademarks.

India follows the NICE Classification of Goods & Services for the purpose of registration of trademarks. The NICE Classification groups products into 45 classes (classes 1-34 include goods and classes 35-45 include services). The NICE Classification is recognized in the majority of the countries and makes applying for trademarks internationally a streamlined process. Every startup, seeking to trademark goods or services, has to choose from the appropriate classes, out of the 45 classes.

While adopting any mark, the startup should also keep in mind and ensure that the mark is not being used by any other person in India or abroad, especially if the mark is well-known.

Question 13.
Write a short note on Enforcement of Trademark Rights [June 2019 (3 Marks)]
Answer:
Trademarks can be protected under the Trademark Act, 1999 and the common law Le. under the remedy of passing off. If a person is using a similar mark for similar or related goods or services or is using a well-known mark, the other person can file a suit for violation of his intellectual property ie. trademark rights irrespective of the fact that the trademark is registered or not.

Registration of a trademark is not a pre-requisite in order to sustain a civil or criminal action against the violation of trademarks in India. The prior adoption and use of the trademark are of utmost importance under trademark laws.

The relief which a Court may usually grant in a suit for infringement or passing off includes a permanent and interim injunction, damages or account of profits, delivery of the infringing goods for destruction, and cost of the legal proceedings. It is pertinent to note that infringement of a trademark is also a cognizable offense and criminal proceedings can also be initiated against the infringers.

Question 14.
Tony Singh is a popular stage performer and M/s. Pon Sun Studios, Chandigarh is having all the rights, titles, and interests in the personality of the artist along with the trade. A company started selling miniature toys of Tony Singh to encash his popularity. In the light of statutory provision, examine the remedy available against the company for infringing Tony Singh’s right to publicity [Dec. 2019(3 Marks)]
Answer:
Tony Singh, being the lawful owner of the trademark, M/s. Pon Sun Studies can institute a civil suit seeking a restraint on infringement of the trademark. The facts are similar to the decided case Daler Mehndi Entertainment v. Baby Gift House & org. In that case, the court held that passing off would occur when the mark is being used to create confusion in the minds of the consumer that results in the damage or loss of business for the person or company who are the lawful owner of the trademark

Question 15.
What do you understand by ‘Geographical Indications of Goods’? Also state which classes of goods can be registered under the Geographical Indications of Goods (Registration & Protection) Act, 1999?
Answer:
The Geographical Indications of Goods (Registration and Protection) Act, 1999 is for the protection of geographical indications in India.

India, as a member of the World Trade Organization (WTO), enacted the Act to comply with the Agreement on Trade-Related Aspects of Intellectual Property Rights. The geographical indication tag ensures that none other than those registered as authorized users or at least those residing inside the geographic territory are allowed to use the popular product name. Examples of Indian Geographical Indications are Darjeeling Tea, Kanchipuram Silk Saree, Alphonso Mango, Nagpur Orange, Kolhapuri Chappal, etc.

Registration to be in respect of particular goods and area [Section 8]: A geographical indication may be registered in respect of any goods as per classification made by the Registrar in respect of a definite territory of a country, or a region or locality.

The Registrar shall classify the goods in accordance with the International Classification of goods for the purposes of registration of geographical indication.

The Registrar may publish in the prescribed manner an alphabetical index of classification of goods.
Any question arising as to the classification of goods in respect of which the geographical indication then the Registrar decision in the matter shall be final.

Question 16.
What are the grounds for the prohibition of registration of geographical indications under the Geographical Indications of Goods (Registration & Protection) Act, 1999? [Dec. 2014 (5 Marks)]
Answer:
Prohibition of registration of certain geographical indications [Section 9]: Following cannot be registered as geographical indications:

  • Use which likely to deceive or cause confusion
  • Use contrary to any law
  • Which comprises or contains scandalous or obscene matter
  • Which likely to hurt the religious feelings
  • Which would be disentitled to protection in a Court
  • Which are generic names or indications (ie. the word has lost its original meaning and has become a common name)

Question 17.
What do you understand by the ‘Design’ Designs Act, 2000? Also state the objective of the Designs Act, 2000.
Answer:
A design to be registrable must be new or original. ‘Original’, in relation to a design, means originating from the author of such design and includes the cases which though old in themselves yet are new in their application. It should not be previously published in India or anywhere in the world.

It should be significantly distinguishable from known designs or a combination of known designs and should not comprise or contain scandalous or obscene matter. It should also be not contrary to public order or morality. A design can be registered in respect of any or all of the articles comprised in a prescribed class of articles.

When a design is registered, the registered proprietor of the design shall have copyright in the design. Copyright under the act means the exclusive right to apply a design to any article in any class in which the design is registered.

The proprietor of the design shall have copyright in the design for 10 years from the date of registration. Provision for the extension of the period of the copyright for another 5 years is also provided under the act. Any design registered under the act is not eligible for protection under the Copyright Act.

The objective of the Designs Act, 2000: The objective of the Designs Act, 2000 is to protect new or original designs so created to be applied or applicable to a particular article to be manufactured by industrial process or means. The important purpose of design registration is to see that the artisan, creator, originator of a design having aesthetic look is not deprived of his bonafide reward by others applying it to their goods.

Question 18.
Registration of certain designs is prohibited under the Design Act, 2000. Discuss. [Dec. 2015 (3 Marks)]
Answer:
Prohibition of registration of certain designs [Section 4]: Following designs cannot be registered under the Act:
(a) Design that is not new or original.
(b) Design that has been already disclosed to the public anywhere in India or in any other country.
(c) Design that is not significantly distinguishable from known designs or a combination of known designs.
(d) Design that comprises or contains scandalous or obscene matter.

Question 19.
What do you understand by the infringement (piracy) of registered design? [June 2014 (3 Marks)], [Dec. 2016 (3 Marks)]
Answer:
Piracy of registered design [Section 22]: During the existence of copyright in the design there is protection against Piracy.

Any person cannot:
(a) Apply the design or its imitation to any article for sale, if it is fraudulent or obvious imitation;
(b) Import any article for the purposes of sale where the design of the imported article is fraudulent or obvious imitation;
(c) Publish or exposing goods for sale in any article, knowingly that the design or its fraudulent imitation has been applied to that article.

The person acting in contravention of the piracy of registered design shall be liable to pay to the registered proprietor of the design a sum up to ₹ 25,000 (maximum ₹ 50,000). In addition, damage can be claimed and an injunction can be taken from the Court.

Question 20.
One of the objectives of the Design Rules, 2001 is to enable protection of newly created designs applying to an article manufactured by a particular industrial process? Elucidate. [Dec.2019(3 Marks)]
Answer:
Objectives of the Designs Rules, 2001 is to enable protection of newly created designs applying to particular articles manufactured by the industrial process.

It refers in legal definition to:

  • Any mode or principle of construction or anything which is in substance merely mechanical device.
  • Any trademark which is a registered trademark indicating a connection in course of trade between the goods and some person having the right, either as proprietor or as a registered user, to use the mark; Any trademark which denotes the ownership of moveable property belonging to a particular person.
  • Any trademark which is a painting, sculpture, drawing, engraving or photograph, or any work of architecture or any other work of artistic craftsmanship.

Question 21.
State the work in which copyright subsists and the work in which it does not subsist? [Dec. 1999 (7 Marks)], [Dec. 2000 (6 Marks)]
Answer:
Works in which copyright subsists [Section 13(1)]: The copyright shall subsist throughout India in the following classes of work:

  • Original literary, dramatic, musical & artistic work
  • Cinematograph films and
  • Sound recording

Certain conditions for copyright [Section 13(2)]:

  1. In case of published work: The author must be a citizen of India whether the work is first published in India or outside India. If the author dies before publication, he must be a citizen of India at the time of his death.
  2. In case of unpublished work: The author should be a citizen of India or domiciled in India.
  3. In case of joint authorship: Conditions (1) & (2) should be satisfied by all the authors.
  4. In the case of architecture work: Such work must be located in India.

Work in which copyright does not subsist [Section 13(3)]: The copyright shall not subsist in the following cases:
(a) In any cinematograph films: If a substantial part of the film is an infringement of any other work.
(b) In any sound recording: If in making such recording there is an infringement of any other work.
(c) In case of or artificial work: Copyright shall subsist only in artistic character & design and shall not extend to processes or methods of construction.

Question 22.
State whether copyright in future work can be assigned and if so, can the assignment be done for a part of the term of the copyright? [Dec. 2000 (2 Marks)]
Answer:
Meaning of Assignment: An assignment may be defined as the transfer of a particular right, leaving nothing with the assignor by virtue of assigning a particular right, and bestowing on the assignee the whole of the legal interest in the right issued.

Assignment of Copyright [Section 18]:

  1. The owner of the copyright in an existing work may assign to any person the copyright either wholly or partially either for the whole term of the copyright or any part thereof. The prospective owner of the copyright in a future work may also assign copyright. However, in the case of future work, the assignment shall take effect only when the work comes into existence.
  2. When rights in copyright are assigned
  3. The assignee is an owner in respect of right assigned and
  4. Assigner is an owner in respect of right not assigned.
  5. In case of copyright in future work, the assignee includes the legal representatives of the assignee.

Question 23.
State whether the assignment of copyright shall be writing or not? [Dec. 2000 (2 Marks)]
Answer:
Mode of Assignment [Section 19]:

  1. The assignment must be in writing, duly signed by the assignor or his authorized agent.
  2. The assignment must specify details of work assigned, right assigned, duration, and territorial extent of such assignment.
  3. The assignment must specify the amount of royalty payable to the author or his legal heirs.
  4. If the assignee does not make use of the rights assigned to him within a period of 1 year from the date of assignment, the assignment shall be deemed to have lapsed unless otherwise specified in the assignment.
  5. If the period of assignment is not stated, it shall be deemed to be 5 years from the date of assignment.
  6. If the territorial extent of the assignment of the rights is not specified, it shall be presumed to extend within India.

Question 24.
Manish assigned the copyright of his book to his nice Sujata in 2017. In 2019, due to some misunderstanding between them, Manish wants to revoke the assignment. Sujata contends that she has not made any fault and that she had helped a lot and there is no ground for revocation of assignment. Decide. [Dec. 2002 (6 Marks)]
Answer:
Facts of Case -Manish assigned the copyright of his book to his nice Sujata in 2017. In 2019, due to some misunderstanding between them, Manish wants to revoke the assignment. Sujata contends that she has not made any fault and that she had helped a lot and there is no ground for revocation of the assignment

Provision: As per Section 19A, if an assignee fails to exercise the right assigned to him then Copyright Board may on receipt of a complaint from the assignor and after holding an inquiry can revoke such the assignment. However, the Copyright Board will not pass an order to revoke the assignment unless the terms of the assignment are harsh to the assignor (ie. Author). It is also provided that no order to revoke the assignment can be passed within a period of 5 years from the date of assignment.

Thus, Manish can succeed to revoke the license only after 5 years of the assignment if he shows to the Copyright Board that the terms of the assignment are harsh to him.

Conclusion: Hence, Manish cannot revoke the assignment in 2019 if he has made an assignment in 2017.

Question 25.
Whether registration of copyright is compulsory? Whether non-registration deprives the owner of his right to bring both a civil and criminal action against on offense of infringement? [Dec. 2000 (4 Marks)]
Answer:
Registration of copyright is not obligatory it is optional. Non-registration does not deprive the owner of his right to bring both a civil & criminal action against an offense of infringement. For registering the work in copyright application has to be made in Form IV with prescribed fee to the Registrar of Copyright.

Entries in Register of Copyrights [Section 45]: The author or the owner or other person interested in the copyright may make an application in Form IV accompanied by the prescribed fee to the Registrar of Copyrights.

If the application is in respect of an artistic work, then an application for registration should be accompanied by a certificate from ‘Register of Trademark’ that no trademark which identical or deceptively similar to such artistic work has been registered under that Act.

On receipt of an applicant for registration of copyright, the Registrar may enter the particulars in the Register of Copyrights after holding inquiry as he may deem fit.

Question 26.
What do you understand by ‘infringement of the copyright’? [June 2006 (5 Marks)]
Answer:
Meaning of Infringement of copyright: Any person without authorization from the owner exercises these rights in respect of the work, which has copyright protection, it constitutes an infringement of the copyright.

When copyright infringed [Section 51]: In the following cases, copyright in a work shall be deemed to be infringed:
(a) Doing anything without a license from the copyright owner.

(b) Permitting for profit without a license any place to be used for the communication of the work to the public.

(c) Making or offering for sale or hire, or selling or letting for hire in public or importing into India any infringing copy of the work.

(d) Imports into India any infringing copies of the work
Exception: Import of one copy of any work is allowed for private and domestic use and it is not an infringement of copyright.

(e) Distributes either for the purpose of trade or to such an extent as to affect prejudicially the owner of the copyright; or

(f) By way of trade, exhibits in public
Explanation: The reproduction of literary, dramatic musical, or artistic work in the form of a cinematograph film shall be deemed to be an infringing copy.

Question 27.
Write a short note on the Term of Copyright [Dec. 2010 (3 Marks)]
Answer:
Sections 22 to 29 deal with the term of copyright.

Type of work

Term of copyright

Copyright in published literary, dramatic, musical, and artistic works A lifetime of the author (+) 60 years beyond his death.
The general rule is that copyright lasts for 60 years. In the case of original literary, dramatic, musical, and artistic works the 60 years period is counted from the year following the death of the author.
Copyright in anonymous and pseudonymous works Next 60 years from the year in which the work has been first published. But if names are disclosed, it will be 60 years from the year following the year in author dies.
Copy right in the posthumous work Next 60 years from the end of the year in which the work has been first published.
Copyright in photographs
Copyright in cinematograph films
Copyright in sound records
Copyright in Government work
Copyright in works of public undertakings
Copyright in works of international organizations
The broadcast reproduction right Next 25 years from the end of the calendar year in which the broadcast is made.

The above table depicting the term of copyright is given for the information of the students. In the examination, the answer can be written as given below

The general rule is that copyright lasts for 60 years. In the case of original literary, dramatic, musical, and artistic works the 60 years period is counted from the year following the death of the author.

In the case of cinematograph films, sound recordings, photographs, posthumous publications, anonymous and pseudonymous publications, works of government, and works of international organizations, the 60 year period is counted from the date of publication.

Meaning of certain words:

  • Anonymous: (of a person) not identified by name; of unknown name.
  • Pseudonymous: Writing or written under an assumed name.
  • Posthumous: Occurring, awarded, or appearing after the death of the originator.

Question 28.
Discuss the provisions of the Copyright Act, 1957 relating to infringement of copyright. [June 2012 (5 Marks)]
Answer:
Facts of Case -Manish assigned the copyright of his book to his nice Sujata in 2017. In 2019, due to some misunderstanding between them, Manish wants to revoke the assignment. Sujata contends that she has not made any fault and that she had helped a lot and there is no ground for revocation of the assignment

Provision: As per Section 19A, if an assignee fails to exercise the right assigned to him then Copyright Board may on receipt of a complaint from the assignor and after holding an inquiry can revoke such the assignment. However, the Copyright Board will not pass an order to revoke the assignment unless the terms of the assignment are harsh to the assignor (ie. Author). It is also provided that no order to revoke the assignment can be passed within a period of 5 years from the date of assignment.

Thus, Manish can succeed to revoke the license only after 5 years of the assignment if he shows to the Copyright Board that the terms of the assignment are harsh to him.

Conclusion: Hence, Manish cannot revoke the assignment in 2019 if he has made an assignment in 2017.

Question 29.
The Copyright Act, 1957 provides for civil remedies for infringement of copyright. Comment. [June 2008 (5 Marks)], [June 2013 (3 Marks)]
Answer:
Civil remedies for infringement of copyright [Section 55]:

  1. Remedies: Where copyright is any work that has been infringed, the owner of the copyright shall be entitled to remedies like injunction, damages, accounts, etc.
  2. No Damages: If the defendant proves that he was not aware and has no reasonable ground to believe that copyright subsisted in the work, then the only remedy available to the plaintiff is to share profits of the defendant and an injunction in respect of the infringement of copyright by the defendant.
  3. Presumed Author: In any proceeding in respect of infringement of copyright, if the author or publisher appears in on copies of work then he shall be presumed to be the author or the publisher of the work unless the contrary is provided.
  4. Court Discretion: The Court has discretion in granting the costs of the proceedings.

Question 30.
Discuss the classes of work for which copyright protection is available under the Copyright Act, 1957 duly amended from time to time. [Dec. 2018 (3 Marks)]
Answer:
Copyright subsists throughout India in the following classes of works:

  • Original literary.
  • Dramatic work.
  • Musical work (consists of music and also graphic notation of such works but excludes any words or action intended to be sung, spoken, or performed with music).
  • Artistic works (painting, sculpture, drawing, engraving, photograph, architecture, or any other work of artistic craftsmanship (whether or not any such work poses artistic work).
  • Cinematograph films (work of visual recording on any medium produced through a process from which a moving image may be produced by any means and includes a sound recording accompanying such visual recording).
  • Sound recordings (recording of sounds from which sounds may be produced regardless of the medium on which such recording is made or the method by which the sounds are produced).

Question 31.
Prof. Ritika Verma has authored a book ‘IFRS – A Practical & Simple Approach’. She wants to get a copyright of the same under the Copyright Act, 1957. Advice Ritika on the rights that are protected to her after obtaining the copyright of the book. [Dec. 2018 (3 Marks)]
Answer:
Protection to Authors: Copyright protects the rights of authors, Le., creators of intellectual property in the form of literary, musical, dramatic, and artistic works and cinematograph films and sound recordings.

Following rights are protected:

  • To reproduce the work.
  • To issue copies of the work to the public.
  • To perform the work in public.
  • To communicate the work to the public.
  • To make any translation of the work.
  • To make any adaptation of the work.

(Conversion of dramatic work into non-dramatic work, literary work into dramatic work, re-arrangement of literary or dramatic work, depiction in comic form or through pictures of a literary or dramatic work, transcription of musical work, or any act involving rearrangement or alteration of existing work and the making of a cinematograph film of literary or dramatic or musical work)

In addition to all the rights applicable to a literary work, the owner of the copyright in a computer program enjoys the rights to sell or give on hire or offer for sale or hire, regardless of whether such a copy has been sold or given on hire on an earlier occasion.

Question 32.
In the light of the provisions of the Copyright Act, 1970, in the following cases who are the owners of the copyrights:
(i) Musical Sound Recordings;
(ii) Works by Journalists. [June 2019 (3 Marks)]
Answer:
Copyright is the right of the artist, author, producer of films, etc. who has created work by use of their artistic skills. Technically owner of the copyright is its author. The term ‘author’ is in the Act as follows:

Author [Section 2(d)]: Author means:

In relation to a literary or dramatic work The author
In relation to a musical work The composer
In relation to an artistic work other than a photograph The artist
In relation to a photograph The person taking the photograph
In relation to a cinematograph film or sound recording The producer
In relation to any literary dramatic musical or artistic work which is computer-generated The person who creates the work

Keeping in view of the above provisions of the Copyright Act, 1970, owners of copyrights are:

  1. In musical sound recordings: Lyricist, composer, singer, musician, and the person or company who produced the sound recording.
  2. In works by journalists during their employment: In the absence of any agreement to the contrary, the proprietor.

Question 33.
Prerna has taken some books from Library and she wants to reproduce “Verbatim” some pages from the book of her Ph.D. thesis. She would like to know from you whether she will be violating any Copyright protection in doing so. Also, brief her exceptions available to protect the interest of the users under Copyright law. [Dec. 2019(3 Marks)]
Answer:
Facts of Case: Prerna has taken some books from Library and she wants to reproduce “Verbatim” some pages from the book of her Ph.D. thesis. She would like to know from you whether she will be violating any Copyright protection in doing so.

Provision: Verbatim reproduction of pages of the book for the Ph.D. thesis is not protected under the fair use doctrine of the Copyright Act, 1957. The case of Fateh Singh Mehta v. OP Singhal decided by the Rajasthan High Court deals with a similar set of facts whereby the research thesis submitted by the respondent was copied verbatim to large extent by the appellant for preparing his Ph.D. thesis. It was held to be an infringement on part of the appellant.

In order to protect the interests of users, some exemptions have been prescribed in respect of specific uses of works enjoying copyright.

It includes:

  • for the purpose of research or private study,
  • for criticism or review,
  • for reporting current events,
  • in connection with a judicial proceeding,
  • for the purpose of education and religious ceremonies

Section 52 of the Copyright Act, 1957 provides for various other purposes which will constitute fair use of copyrighted material.

Conclusion: Therefore Prerna who is using the book for research work has not violated a copyright

Question 34.
Who is entitled to make an application for a patent? [June 2007 (5 Marks)]
Answer:
Persons entitled to apply for Patents [Section 6]: An application for a patent for an invention may be made by any of the following persons:

  1. True and first inventor of the invention.
  2. The assignee of the true and first inventor of the invention.
  3. The legal representative of a deceased person who was entitled to make an application before his death.

An application may be made by any of the above persons either alone or jointly with any other persons.
Eg: Ramlal invented a pen that can capture all data that is written in which pen. Either Ramlal can apply for a patent or if he dies then Randal’s wife can apply. If Ramlal assigned his invention to Reliance Industries then Reliance Industries can apply.

Question 35.
Distinguish between: Invention & Patentable Invention [June 2008 (4 Marks)], [June 2009 (5 Marks)]
Answer:
Invention means a new product or process involving inventive steps and £ capable of industrial application.

The invention is a product of original thought. Mere discovery of an already existing principle is not an invention, e.g. Edison invented the electric bulb while Columbus discovered America. The invention must result in a new product or new result or new process or a new combination.

The word ‘patentable invention’ is not defined anywhere in the Patent Act, 1970. However, one can say that ‘patentable invention’ means invention for which patent can be granted under the Patent Act, 1970. Section 3 enumerates the inventions which are not patentable.

Question 36.
Mention any five inventions which are not patentable under the Patents Act, 1970. [Dec. 2008 (5 Marks)]
Answer:
What is not Invention [Section 3]: This section gives the list of inventions that are not patentable under the Patents Act, 1970.

Some of these are given below:

  • An invention that is frivolous.
  • An invention that claims anything obviously contrary to well-established natural laws.
  • Morality
  • Injurious to public health
  • a mere arrangement or re-arrangement or duplication of known devices
  • a method of agriculture or horticulture
  • inventions relating to atomic energy
  • The mere discovery of a scientific principle.
  • The formulation of an abstract theory.
  • Discovery of any living thing or non-living substance occurring in nature.
  • A mathematical or business method or a computer program per se or algorithms.
  • A literary, dramatic, musical, or artistic work or any other aesthetic creation whatsoever including cinematographic works and television productions.
  • A presentation of information.

Inventions relating to atomic energy not patentable [Section 4]: No patent shall be granted in respect of an invention relating to atomic energy falling Section 20(1) of the Atomic Energy Act, 1962.

Question 37.
Does a patent obtain in India give worldwide protection? [Dec. 2012 (5 Marks)]
Answer:
Patents are territorial rights. In general, the exclusive rights are only applicable in the country or region in which a patent has been filed and granted, in accordance with the law of that country or region. Therefore, separate patents should be obtained in each country where the applicant requires protection of his invention in those countries. There is no patent valid worldwide.

Setting Up of Business Entities and Closure Questions and Answers

Intellectual Property Laws – Setting Up of Business Entities and Closure Important Questions Read More »

FEMA -Direct investment Outside India – Economic, Business and Commercial Laws Important Questions

FEMA -Direct investment Outside India – Economic, Business and Commercial Laws Important Questions

FEMA -Direct investment Outside India – Economic, Business and Commercial Laws Important Questions

Question 1.
An Indian company engaged in the financial sector is interested in making an investment in the banking business abroad. Advice with reference to relevant provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder. [June 2010 (l Mark)]
Answer:
As per Regulation 6(1) of the FEM (Transfer or Issue of Foreign Securities) Regulation, 2004, an Indian Party may make an investment in Joint Ventures (JV)/Wholly Owned Subsidiaries (WOS) subject to conditions specified in Regulation 6(2).

Thus, an Indian company can make direct investment in a joint venture outside India subject to compliance with the above-stated provisions.

Question 2.
An Indian resident wants to purchase foreign securities by making | remittances from his resident foreign currency (RFC) account. Advice with f reference to relevant provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder. [June 2010 (1 Mark)]
Answer:
As per Regulation 4 of FEM (Transfer or Issue of Foreign Securities) Regulations, 2004, a person resident in India may purchase foreign security out of funds held in RFC Account.

Thus, an Indian resident can purchase foreign securities by making remittances from his RFC Account.

Question 3.
Shyam, an Indian resident, wishes to acquire qualification shares for becoming a director of a company outside India and the consideration is the US $ 30,000. Advice with reference to relevant provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder. [Dec 2011 (1 Mark)]
Answer:
As per Regulation 24 of the FEM (Transfer or Issue of Foreign Securities) Regulations, 2004, a person resident in India being individual may acquire foreign security as qualification shares issued by an entity incorporated outside India for holding the post of a director in the entity.

Conditions:

  1. The extent of acquiring the qualification shares is as per the law of the host country where the entity is located.
  2. The limit of remittance for acquiring such qualification shares shall be within the overall ceiling prescribed for the resident individuals under the Liberalized Remittance Scheme in force at the time of acquisition.

Thus, Shyam can acquire foreign securities as qualification shares issued by a company incorporated outside India for holding the position of a director subject to compliance with the above-stated provisions.

Question 4.
Aadarsh Education Society, engaged in the education sector, intends to make an investment in the education sector in a joint venture in the USA. Advice with reference to relevant provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder. [June 2012 (1 Mark)]
Answer:
As per Regulation 9A of the FEM (Transfer or Issue of Foreign Security) Regulations, 2004, Registered Trusts and Societies engaged in the manufacturing/educational sector satisfying the criteria as per Schedule III may invest in the same sector in JV/WOS outside India with the prior approval of the RBI.

Thus, the Aadarsh Education Society, engaged in the education sector can make the investment in the education sector in a joint venture in the USA by taking prior approval of RBI.

Question 5.
Rajiv, a person resident in India, wishes to acquire foreign securities as qualification shares issued by a company incorporated outside India for holding the position of a director in the company. Advice with reference to relevant provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder. [Dec 2012 (1 Mark)]
Answer:
As per Regulation 24 of the FEM (Transfer or Issue of Foreign Securities) Regulations, 2004, a person resident in India being individual may acquire foreign security as qualification shares issued by an entity incorporated outside India for holding the post of a director in the entity.

Conditions:

  1. The extent of acquiring the qualification shares is as per the law of the host country where the entity is located.
  2. The limit of remittance for acquiring such qualification shares shall be within the overall ceiling prescribed for the resident individuals under the Liberalized Remittance Scheme in force at the time of acquisition.

Thus, Shyam can acquire foreign securities as qualification shares issued by a company incorporated outside India for holding the position of a director subject to compliance with the above-stated provisions.

Question 6.
Ashok, a person resident in India, has been offered bonus shares of the value of US $ 20,000 by a company incorporated outside India. Advice with reference to relevant provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder. [Dec. 2012 (1 Mark)}
Answer:
As per Regulation 4 of the FEM (Transfer or Issue of Foreign Security) Regulations, 2004, a person resident in India may acquire bonus shares on the foreign securities.

Thus, Ashok may acquire bonus shares of the value of US$ 20,000 of a company incorporated outside India.

Question 7.
An Indian company intends to make direct investment in a joint venture outside India. Advice with reference to relevant provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder. [Dec. 2012 (1 Mark)]
Answer:
As per Regulation 6(1) of the FEM (Transfer or Issue of Foreign Security) Regulations, 2004, an Indian Party may make an investment in Joint j Ventures (JV)/Wholly Owned Subsidiaries (WOS) subject to conditions j specified in Regulation 6(2).

Thus, an Indian company can make direct investment in a joint venture j outside India subject to compliance with the above-stated provisions.

Question 8.
Zenith Ltd., a foreign company is interested in purchasing its shares issued to some of its employees, who are residents in India, under the ESOP scheme. Advice with reference to relevant provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder. [June 2013 (1 Mark)]
Answer:
As per the RBI circular, foreign companies are permitted to repurchase the shares issued to residents in India under any ESOP Scheme provided:

  1. The shares were issued in accordance with provisions of FEMA.
  2. The shares are being repurchased in terms of the initial offer document.
  3. An annual return is submitted through the Authorized Bank giving details of remittances/beneficiaries, etc.

Thus, Zenith Ltd., a foreign company can re-purchase the shares issued to its employees; who are residents in India, under the ESOP scheme.

Question 9.
What is direct investment outside India? Discuss the regulations in respect of acquisition and transfer of immovable property outside India. [Dec. 2016 (7 Marks)]
Answer:
Direct investment outside India means investments, either under the Automatic Route or the Approval Route, by way of contribution to the capital or subscription to the Memorandum of a foreign entity or by way of purchase of existing shares of a foreign entity either by market purchase or private placement or through the stock exchange, signifying a long-term interest in the foreign entity (JV or WOS).

As per Section 6(4) of the Foreign Exchange Management Act, 1999, a person resident in India may hold, own, transfer or invest in foreign currency, foreign security, or any immovable property situated outside India if such currency, security, or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India.

Provisions relating to the transfer of immovable property outside India are contained in the FEM (Acquisition and Transfer of Immovable Property Outside India) Regulations, 2015.

Restriction on acquisition or transfer of immovable property outside India [Regulation 3]: No person resident in India shall acquire or transfer any immovable property situated outside India without general or special permission of the RBI.

Acquisition and transfer of immovable property outside India [Regulation 5]:
1. A person resident in India may acquire immovable property outside India
(a) By way of gift or inheritance from a person referred to in Section 6(4) of the Act, or referred to in Regulation 4(b);

(b) By way of purchase out of foreign exchange held in Resident Foreign Currency (RFC) account maintained in accordance with the FEM (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015;

(c) Jointly with a relative who is a person resident outside India, provided there is no outflow of funds from India.
1. A person resident in India may acquire immovable property outside India, by way of inheritance or gift from a person resident in India who has acquired such property in accordance with the foreign exchange provisions in force at the time of such acquisition.

2. A company incorporated in India having overseas offices may acquire immovable property outside India for its business and for residential purposes of its staff, in accordance with the direction issued by the Reserve Bank of India from time to time.

Explanation: ‘Relative’ in relation to an individual means husband, wife, brother or sister, or any lineal ascendant or descendant of that individual.

Question 10.
What are the obligations of the Indian Party which have made direct investment outside India? [Dec. 2018 (4 Marks)]
Answer:
An Indian Party which has made direct investment outside India is required to comply with the following:
1. Receive share certificates or any other documentary evidence of investment in the foreign JV/WOS as evidence of investment and submit the same to the designated AD within 6 months.

2. Repatriate to India, all dues receivable from the foreign JV/WOS, like dividend, royalty, technical fees, etc.

3. Submit to the RBI through the designated Authorized Dealer, every year, an Annual Performance Report in Part III of Form ODI in respect of each JV or WOS outside India set up or acquired by the Indian party.

4. Report the details of the decisions taken by a JV/WOS regarding diversification of its activities/setting up of step down subsidiaries/ alteration in its shareholding pattern within 30 days of the approval of those decisions by the competent authority concerned of such JV/ WOS in terms of the local laws of the host country. These are also to be included in the relevant Annual Performance Report.

5. In case of disinvestment, sale proceeds of shares/securities are to be repatriated to India immediately on receipt thereof and in any case not later than 90 days from the date of sale of the shares/securities, and documentary evidence to this effect is to be submitted to the RBI through the designated Authorized Dealer.

6. Submit an Annual Performance Report (APR) in Form ODI Part III to the RBI by 30th of June every year in respect of each Joint Venture (JV)/Wholly Owned Subsidiary (WOS) outside India set up or acquired by the Indian Party/Resident Individual.

Question 11.
State the sources within which the Indian mutual funds registered with SEBI are permitted to invest in overseas direct investment. [June 2019 (5 Marks)]
Answer:
As per Regulation 6C of the FEM (Transfer or Issue of Foreign j Security) Regulations, 2004, Mutual funds registered with the SEBI may 1 invest within specified limits, in the shares or rated bonds/fixed income securities of an overseas company listed on a recognized stock exchange or in exchange-traded funds or in other securities as may be stipulated by j the RBI from time to time.

Every transaction relating to the purchase and sale of foreign security by mutual funds shall be routed through the designated branch of an authorized dealer in India.

Indian Mutual Funds registered with SEBI are permitted to invest within the overall cap of US$ 7 billion in:

  • ADR/GDR of the Indian and foreign companies.
  • Equity of overseas companies listed on recognized overseas stock ex-changes; initial and follow on public offerings for listing at recognized overseas stock exchanges.
  • Foreign debt securities- short term as well as long term with rating not below investment grade – in the countries with fully convertible currencies.
  • Money market investments not below investment grade; repost where the counterparty is not below investment grade.
  • Government securities where countries are not rated below investment grade.
  • Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with underlying as securities.
  • Short-term deposits with banks overseas where the issuer is rated not below investment grade.
  • Units/securities issued by overseas Mutual Funds/Unit Trusts registered with overseas regulators.

Question 12.
What is the eligibility criteria for overseas investment by proprietorship concerns and registered trust [Dec 2019 (4 marks)]
Answer:
Proprietorship Concerns: The proposal for overseas direct investment (or financial commitment), by a proprietorship concern/unregistered partnership firm in India, are to be considered by the Reserve Bank under the approval route are subject to the following terms and conditions:
(a) The proprietorship concern/unregistered partnership firm in India is classified as ‘Status Holder’ as per the Foreign Trade Policy issued by the Ministry of Commerce and Industry, Government of India from time to time.

(b) The proprietorship concern/unregistered partnership firm in India has a proven track record, ie., the export outstanding does not exceed 10% of the average export realization of the preceding 3 years and consistently high export performance.

(c) The Authorised Dealer bank is satisfied that the proprietorship concern/ unregistered partnership firm in India is KYC compliant, engaged in the proposed business, and has turnover as indicated.

(d) The proprietorship concern/unregistered partnership firm in India has not come under the adverse notice of any Government agency like the Directorate of Enforcement, Central Bureau of Investigation, Income-tax Department, etc., and does not appear in the exporters’ caution list of the Reserve Bank or in the list of defaulters to the banking system in India.

(e) The amount of proposed investment (or financial commitment) outside India does not exceed 10% of the average of last 3 years export realization or 200% of the net owned funds of the proprietorship concern/ unregistered partnership firm in India, whichever is lower. Registered Trusts: Registered Trusts engaged in the educational/hospital sector are allowed to make an investment (or financial commitment) in the same sector(s) in a JV/WOS outside India, with the prior approval of the Reserve Bank.

Eligibility Criteria for Trust:

  • The Trust should be registered under the Indian Trusts Act, 1882.
  • The Trust deed permits the proposed investment overseas.
  • The proposed investment should be approved by the trustee.
  • The AD Category -1 bank is satisfied that the Trust is KYC (Know Your Customer) compliant and is engaged in a bona fide activity.
  • The Trust has been in existence at least for a period of 3 years.
  • The Trust has not come under the adverse notice of any Regulatory/ Enforcement agency like the Directorate of Enforcement, Central Bureau of Investigation (CBI), etc.

Economic, Business and Commercial Laws Questions and Answers

FEMA -Direct investment Outside India – Economic, Business and Commercial Laws Important Questions Read More »