Explain the grounds for refusal of registration of a trademark.

A trademark is required to be either inherently distinctive or capable of distinguishing its goods by acquiring distinctiveness if used for some period of time. The Trademarks Act, 1999 provides for absolute and relative grounds for refusal of registration of a trademark. Absolute Grounds - (Section 9 of the Act) The First Rule - [sub-section (1)] The mark lacks distinctiveness; The mark is descriptive of the characteristics of the goods or services; The mark consists exclusively of marks or indications which have become customary or in the bonafide and established practices of the trade. Exception to the above Rule - the Proviso to sub-section (1) Before the date of application for registration, if the mark has acquired a distinctive character as a result of the use made of it or if the mark is a well-known mark, the mark shall not be refused registration. Second Rule - [sub-section (2)] The mark is of such nature as to deceive the public or cause confusion; The mark is likely to hurt religious sentiments; The mark comprises scandalous or obscene matter; The use of the mark is prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950; The Third Rule - [sub-section (3)] If the mark consists exclusively of the shape of the goods (i) resulting from nature of the goods; or (ii) which is necessary to obtain a technical result; or (iii) which gives substantial value to the goods. Relative Grounds (Section 11 of the Act): The First Rule - [sub-section (1)] The mark is identical or similar to an earlier trademark and the goods are identical or similar to the goods of the earlier trademark. The Second Rule - [sub-section (2)] The mark is identical or similar to an earlier trademark and use of such a mark would allow the applicant to gain an unfair advantage of or damage the reputation of the earlier trademark though goods may not be similar. Note: For the First and Second Rule, "Earlier Trademark" means a "registered mark" or a "well known mark". The Third Rule - [sub-section (3)] The use of the mark in India should be prevented by virtue of any law, in particular, the law of passing off protecting an unregistered trademark or by virtue of the law of copyright. 'Honesty' is an Exception - [sub-section (4) of section 11 read with section 12] Section 12 of the Trademarks Act, 1999 permits registration of "honest concurrent users". For availing the benefit thereof, the applicant must be a bonafide prior or concurrent user of the mark.