Trademark infringement in Nepal occurs when a person copies, uses, or causes the use of a trademark that is registered in the name of another person, without the ownership having been transferred or written permission having been granted under Section 21D of the Patent, Design and Trade Mark Act, 2022 (1965). This prohibition is set out in Section 16(2) of the Act, and it is enforced administratively by the Department of Industry (DOI), which may impose a fine of up to NPR 100,000, order confiscation of the infringing goods, and award compensation for proven losses. An appeal against a DOI order may be filed within 35 days.
This page explains what trademark infringement means under Nepalese law, how it differs from opposition and cancellation, what evidence an owner should collect, how a complaint is filed with the DOI, and what remedies the Act actually provides, no imported foreign concepts, only what the Patent, Design and Trade Mark Act and official sources support.
Updated on: 28 September 2026
Trademark Infringement in Nepal: Quick Answers
| Question | Answer under Nepalese law |
|---|---|
| What law governs trademark infringement in Nepal? | The Patent, Design and Trade Mark Act, 2022 (1965) ("PDTA") |
| What conduct is prohibited? | Copying, using, or causing the use of another person's registered trademark without ownership transfer or written permission (Section 16(2)) |
| Is an unregistered mark protected? | Under the PDTA, trademark title arises through registration, and the Act's trademark-specific remedies require a registration. Other laws may address some forms of misleading conduct, but that is outside the PDTA. |
| Who enforces trademark rights? | The Department of Industry (DOI), which acts administratively and quasi-judicially |
| What is the maximum fine? | NPR 100,000, plus confiscation of articles and goods connected with the offence (Section 19) |
| Can the owner recover compensation? | Yes, the DOI may order the offender to pay compensation for actual losses suffered (Section 25) |
| Is there a deadline to file a complaint? | The Act does not fix a limitation period for infringement complaints |
| Can a DOI decision be appealed? | Yes, Section 27 provides a 35-day window. The section uses legacy "Appellate Court" wording, so confirm the presently competent forum before filing. |
| What does the complaint fee schedule say? | Schedule 3, item 7 of the PDTA lists NPR 1,000. DOI's current checklist requires a fee receipt but does not state the current amount, confirm with DOI before filing. |
| Can infringing imports be stopped at the border? | Yes, Nepal's current customs law prohibits the import or export of goods that infringe IP rights (Customs Act 2082). Confirm the procedure with the Department of Customs. |
What Counts as Trademark Infringement in Nepal?
The legal definition of infringement in Nepal is simpler than in many other jurisdictions, and precision matters here.
Under Section 16(1) of the PDTA, title to a trademark is acquired only upon registration with the Department of Industry under Section 18. Under Section 16(2), no person may copy, use, or cause to be used, in the name of others, a trademark registered in the name of another person, unless the ownership has been transferred or written permission has been granted pursuant to Section 21D.
Three elements can be extracted from this provision:
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There must be a validly registered trademark in someone else's name.
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The accused person must have copied, used, or caused the use of that mark.
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The use must occur without transfer of ownership and without written permission.
Does the Infringing Mark Have to Be Identical?
The Act does not use the phrase "confusingly similar," and this page will not pretend that it does. Section 16(2) prohibits the copying or use of the registered mark itself. Where the accused use is not identical, the question becomes a factual one: does the accused use in fact amount to copying or use of that registered mark? The factors that decide that question are the closeness of the mark itself, the goods or services on which it is used, and the overall impression created — the nearer the accused use comes to reproducing the registered mark in the marketplace, the stronger the case that Section 16(2) has been violated. The Act's own registration-side standard points in the same direction: the DOI must refuse registration of a mark that would harm "the reputation of the trade-mark of any other person" or that has already been registered in another person's name (Section 18(1), proviso). This article makes no claim about how the DOI has decided similarity questions in past cases, because verified DOI decisions on point are not readily available; the similarity analysis is presented here as a factual factor in determining copying, nothing more.
Does the Goods or Services Context Matter?
Trademark registration in Nepal is class-based. Under Section 18A, the Government of Nepal classifies goods and services (the Nice Classification framework is applied in practice), separate applications are required for different categories, and a mark registered in one category may be registered in another. Because rights are acquired per registration, an infringement complaint is naturally strongest when the accused use occurs on goods or services within the owner's registered classes. The PDTA does not contain an express statutory defence of "different goods," but a use on entirely unrelated goods, in a different class, with a non-identical mark, presents a materially weaker case than a like-for-like copy.
What Rights Does Trademark Registration Give the Owner?
Registration is not a formality in Nepal, it is the source of the right itself. A registered trademark owner holds the following rights under the PDTA:
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The exclusive legal title to the mark, valid for seven years and renewable indefinitely in seven-year periods (Sections 16(1), 18D, 23B).
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The right to prevent others from copying or using the registered mark without written permission or a recorded transfer (Section 16(2)).
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The right to transfer ownership or grant written approval for use, recorded at the DOI (Section 21D).
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The right to complain to the DOI against infringing use and to seek fines, confiscation, and compensation (Sections 19 and 25).
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The right to appeal a DOI order within 35 days, Section 27 provides the window, and its use of the legacy term "Appellate Court" means the presently competent forum should be confirmed before filing.
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The right to appoint an attorney or legal practitioner to act in any proceeding under the Act (Section 20).
Foreign brand owners should note Section 21B: title to a trademark registered in a foreign country is not valid in Nepal unless the mark is separately registered in Nepal. A foreign registration certificate supports priority registration under Section 21C (Paris Convention facility), but enforcement in Nepal requires a Nepalese registration. Foreign applicants are covered in detail in the guide on trademark registration for foreigners in Nepal.
Common Ways Trademark Infringement Happens in Nepal
Copying a Registered Word Mark
A word mark — the brand name itself in plain text — is copied when a competitor prints the same or essentially the same name on its own products, packaging, invoices, or advertising. In general terms, a word registration centres on the name itself rather than one particular rendering of it — the accepted practical reading, although the Act does not state this in terms and DOI assesses scope questions case by case — so copied use of the same name in different typography may still fall within Section 16(2). The differences between word marks and logos, and what each form of registration actually covers, are explained in the comparison of word marks versus logo trademarks.
Copying a Registered Logo or Device
A registered logo (device mark) is infringed when the distinctive graphical element, the emblem, stylization, or combined word-and-symbol design — is reproduced on competing goods or related materials. How far a logo registration reaches against altered versions is a scope question the Act does not settle in terms; the comparison is between the registered design and the accused design.
Confusingly Similar Brand Use on Related Goods
A competitor may avoid a literal copy while adopting a name or logo that closely evokes the registered brand on the same or related goods — for example, altering one letter of a well-known tea brand or replicating its label layout with a near-identical mountain graphic. Whether such conduct violates Section 16(2) is a factual question, decided by comparing the accused use against the registered mark: the closeness of the wording, the graphic elements, the goods, and the overall commercial impression all bear on whether the registered mark has in fact been copied or used. No categorical prediction is offered here, because outcomes depend on the facts of each comparison and on how the DOI or a court assesses them.
Unauthorized Use by Distributors and Former Licensees
A distributor, franchisee, or licensee may lawfully use the owner's mark during the relationship, because written permission can be granted under Section 21D. When the licence ends or the distribution agreement is terminated, continued use becomes unauthorized use of a registered trademark, a classic infringement scenario that brand owners frequently discover late.
Use of a Company Name as a Market-Facing Brand
Registering a company at the Office of Company Registrar does not confer trademark rights. Trademark title is acquired only through DOI registration under Section 16(1). A business that incorporates under a name similar to another's registered trademark, and then uses that name as a brand on products, signage, or marketing, can still violate Section 16(2). The relationship between company names and trademarks is examined in company name versus trademark in Nepal.
Educational Examples of Trademark Infringement
These fictional examples illustrate how infringement arises in practice. They are teaching examples, not conclusions about real companies.
Example 1 = Copied tea brand. "Himalayan Gold" is a registered trademark for tea in Class 30. A rival packer launches tea boxes labelled "Himalayan Gold" with a similar colour scheme. This is a direct copy of a registered word mark, the clearest form of infringement under Section 16(2).
Example 2 = Similar logo on related goods. "Sherpa Gear" holds a registered device mark for outdoor equipment. A new seller adopts a near-identical mountain-and-flag logo for backpacks. Whether this amounts to infringement depends on how closely the accused design reproduces the registered design, a factual comparison, not a label.
Example 3 = Distributor after licence ends. A soft-drink company grants a bottler written approval to use its mark under Section 21D. The bottler continues selling under the mark after termination. The continued use is now without written permission and violates Section 16(2).
Example 4 = Company name used as a brand. An entrepreneur registers "Everest Pure Pvt. Ltd." at the company registrar while "Everest Pure" is another person's registered trademark for bottled water, then sells water branded "Everest Pure." The company registration does not legitimize the brand use.
Trademark Infringement vs Opposition vs Cancellation
These three processes are frequently confused, and confusing them leads to wasted time and money.
Infringement concerns unauthorized use of an existing registration in the marketplace. It is enforced against the user, through the DOI complaint mechanism described below.
Opposition is a pre-registration challenge. Under the DOI's Trademark Guideline (2072), a written complaint stating grounds and evidence may be filed against a mark published in the Industrial Property Bulletin before registration is finalized. The Guideline sets a 90-day window from publication; Section 21A(2) of the Act provides a separate 35-day complaint mechanism that, on its literal text, attaches to the publication of registered marks and associated particulars — apparently a different stage from the Guideline's pre-registration opposition. Bulletin notices have applied varying periods in practice, so the period stated in the specific notice should be followed and the deadline confirmed with DOI where the sources differ. The procedure is covered in the guide on trademark opposition in Nepal.
Cancellation attacks an existing registration. Under Section 18(3), the DOI may cancel a registration if grounds such as harm to the reputation of another's trademark are established, and Section 18C provides for cancellation of registrations not brought into use within one year. Cancellation is explained in trademark cancellation in Nepal.
The practical distinction is one of timing and target: opposition acts against an application, cancellation against a registration, and infringement against the user of a mark in trade.
What Evidence Should a Trademark Owner Collect?
The DOI decides infringement complaints on evidence, and the quality of the evidence file usually determines the outcome. An owner who suspects infringement should preserve the following:
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The trademark registration certificate and renewal records, proving the registration is subsisting and in force.
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Specimens of the owner's own use, product photographs, packaging, invoices, and advertising showing the mark in commerce.
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Specimens of the accused use, photographs of the infringing product, packaging, shop displays, websites, and social media pages, ideally with dates visible.
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Purchase records, dated receipts or invoices for the infringing goods, with the source and date of each purchase recorded.
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Registration extracts from the DOI register confirming the accused party has no registration or permission on record.
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Where permission previously existed, the licence or distribution agreement and its termination letter.
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Business records showing loss, declined orders, diverted customers, price erosion, relevant to a compensation claim under Section 25.
How to File a Trademark Infringement Complaint in Nepal
The PDTA does not prescribe a detailed complaint procedure in the way a civil procedure code would. What the Act, the DOI's published checklists, and the official fee schedule establish is the following:
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The complaint is filed with the Department of Industry, specifically its Industrial Property Section, which administers trademarks and hears disputes.
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The DOI's published service checklists require a written application or complaint accompanied by a receipt for the prescribed fee. Schedule 3, item 7 of the PDTA lists a complaint and objection fee of NPR 1,000; the DOI's current checklist requires the fee receipt without stating the current amount, so the fee in force on the day of filing should be confirmed with the DOI.
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The PDTA does not set out a detailed step-by-step procedure for an infringement complaint. The DOI considers the complaint and the supporting evidence under its statutory authority, and issues its decision based on the applicable provisions of the Act.
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If infringement is established, the DOI may order the remedies provided in Sections 19 and 25, a fine, confiscation, and compensation.
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Either party may appeal within 35 days under Section 27.
Practically, a well-prepared complaint file contains the registration certificate, the evidence set out above, and a written statement of the infringing acts with dates. No fixed official end-to-end timeframe for a DOI infringement proceeding was found in the primary sources; the Act sets no deadline for the Department to decide, and the duration depends on the inquiry and the parties' exchanges.
Remedies and Penalties for Trademark Infringement in Nepal
This is the core of the subject, and each remedy is stated here only to the extent the supporting provision actually authorizes it.
Fine Under Section 19
A person who violates Section 16(2), who brings a cancelled trademark back into use, or who violates Section 18B may be punished with a fine not exceeding NPR 100,000, imposed by order of the DOI. Notably, the PDTA prescribes no imprisonment for trademark infringement; claims of imprisonment found in some commentary derive from other statutes, not from the PDTA.
Confiscation of Infringing Goods Under Section 19
Articles and goods connected with the offence shall be confiscated on the orders of the Department, in proportion to the gravity of the offence. Confiscation is therefore not optional window-dressing, it is part of the statutory punishment and is the mechanism by which counterfeit stock is removed from the market.
Compensation Under Section 25
Where a registered trademark owner suffers losses as a result of a violation of the Act, the DOI may order the offender to pay compensation to the title holder. Two limits must be understood: the compensation is tied to losses actually suffered (the Act contains no fixed damages formula and no punitive-damages provision), and the awarding authority is the DOI itself in the same proceeding. Owners should therefore build the loss evidence described above into the complaint from the start.
Appeal Under Section 27
Section 27 provides that a person dissatisfied with an order issued by the Department may file an appeal within 35 days. The section uses the legacy term "Appellate Court," which predates Nepal's current court structure; the presently competent appellate forum should be confirmed before filing, and missing the 35-day window risks the order becoming final.
Border Measures Under the Customs Act
Separately from the PDTA, Nepal's customs law provides a route against counterfeit goods moving across the border. The current Customs Act 2082 (2025), which replaced the Customs Act 2064 (2007), effective 8 December 2025, prohibits the import or export of goods that infringe intellectual-property rights, including trademarks. The equivalent application-and-withholding procedure under the current Act should be confirmed with the Department of Customs or the Nepal Law Commission before seeking border action. For historical reference, the corresponding mechanism under the repealed Customs Act 2064 appeared in Section 68. For counterfeit goods moving across the border, this customs route acts at the point of entry rather than after sale, and it is supplementary to, not a replacement for, a DOI complaint.
Practical Adjuncts, Not Statutory Remedies
Cease-and-desist correspondence, licence renegotiation, and commercial settlement are practical steps that lawyers commonly use before or alongside formal proceedings, but none of them is a remedy granted by the PDTA itself, and this article does not present them as such.
What Should a Business Do If It Is Accused of Infringement?
A business that receives an infringement complaint or a DOI notice should respond methodically rather than ignoring it.
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The registration record of the complaining party should be obtained and checked, the registration number, classes, status, and whether it is subsisting.
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The accused mark should be compared honestly against the registered mark, including the goods or services on which each is used.
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Any written permission, licence, distribution agreement, or transfer document should be located; if use was authorized under Section 21D, the permission and its scope become the centre of the defence.
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Where the registration is vulnerable, for example, where the complainant's mark has not been used for over a year, or where the registration itself conflicts with an earlier right, cancellation under Sections 18(3) or 18C may be considered in parallel.
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If the complaint has merit, a negotiated solution is usually cheaper than a fine, confiscation, compensation, and a damaged commercial relationship; legal advice should be taken before any admission is made.
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The 35-day appeal window under Section 27 should be diarized if an adverse DOI order is received, with the competent forum confirmed.
Practical Steps Before Enforcement
Before a complaint is filed, a trademark owner in Nepal is advised to take the following steps, in order:
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Verify the registration. Confirm the certificate is subsisting, renewed, and covers the relevant classes.
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Run a fresh search. Check the DOI register for any registration, transfer, or permission record in the accused party's name — the trademark search in Nepal guide explains how the register is checked.
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Build the evidence file as described above, before any confrontation tips off the infringer.
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Decide the forum. A DOI complaint handles the infringement itself; border issues may need the customs route; a vulnerable conflicting registration may call for cancellation.
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File a complete complaint, pay the prescribed fee, and retain the fee receipt — DOI's checklist requires it. Confirm the current fee amount with DOI before filing.
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Track every deadline, especially the 35-day appeal period.
For the registration-side foundation of all of this, see the main guide on trademark registration in Nepal.
