Indirect Infringement: Definition and Meaning

The universal law principle serves as the foundation for both the concept and practise of indirect trademark infringement. It holds liable both the primary infringer and anybody (if any) who aids or causes the primary infringer to violate the registered trademark.

There are no particular provisions under the Trademark Act of 1999 that address this kind of infringement. As a result, it is not possible to say that there is no culpability for this infringement. The applicability and regulations of Indirect Infringement are provided for under the Comprehensive Principle of Law. Such principles hold not only the principal infringer liable for infringement but also the individual who promotes or aids the infringer.

What is Indirect Infringement?

Indirect Infringement refers to any form of alleged patent infringement in which the accused infringer is not directly infringing the subject patent right(s), but is somehow liable for a Third Party's direct infringement of the subject patent right(s) by, for example (without limitation), supplying designs, parts, or instructions to the Third Party that allow such Third Party to directly infringe the subject patent right(s). Contributory infringement and encouraging infringement are examples of indirect infringement.

Types of Indirect Infringement

Contrary to direct infringement, there is no particular provision in the Act dealing with indirect infringement. This does not preclude responsibility for indirect infringement. The concept of universal law underlies the idea and application of indirect violation. It holds liable not just the primary infringer, but also everyone who aids or causes that primary infringer to infringe. Indirect violations are classified into two types −

Vicarious Infringement 

Section 114 of the Trademarks Statute, 1999, states that any corporation that violates the act may be held accountable. It also implies that, in the event of indirect infringement, everyone in the organization will be held accountable in addition to the primary offender. The person who behaved in good faith and without knowledge of an infringement shall be exempt from this vicarious liability.

Essential Features of Vicarious Infringement

Following are the major features of vicarious infringement 

• When an individual is regulating the activities of the principle infringer

• When an individual is originating monetary benefits from Infringement

• When an individual had aware of the Trademark Infringement and still participated in such Infringement

Contributory Infringement 

A person will be held accountable for contributory infringement if they knew about the violation, made a major contribution to it, and/or persuaded the primary violator to continue with the violation. There is no exemption to this contributory infringement since there is no possibility for the contributory infringer to operate in good faith.

Essential Features of Contributory Infringement

Following are the major features of contributory infringement −

• When an individual knows about the Infringement

• When an individual encouraged the principle infringer for committing Infringement

• When an individual materially contributed to direct management

 Conclusion

A third person may be held accountable for direct infringement of a patent, copyright, or trademark committed by another under the principle of secondary responsibility if the third party actively urged, encouraged, or significantly contributed to the infringing behavior. Indirect infringement can take several forms, including inducement infringement, contributory infringement, and vicarious infringement.

Frequently Asked Questions

Q1. What is Indirect Infringement of a Trademark?

Ans. Indirect infringement is a common law theory that holds not only direct infringers liable, but also those who inspire direct infringers to commit the infringement.

Q2. How do you prove indirect infringement?

Ans. The rights holder must demonstrate that: (1) another person (a third party) genuinely infringed; (2) the accused inducer was aware of the invention and yet; and (3) the accused inducer deliberately encouraged the infringing conduct with the explicit goal of promoting infringement by that person.

Q3. What is an example of contributory infringement?

Ans. Contributory infringement requires that the component have no significant non-infringing applications. For example, if someone offered a product that was only usable when paired with a patented product, this may be deemed contributory infringement.

Q4. What is the difference between direct and indirect infringement?

Ans. When a defendant manufactures, uses, sells, proposes to sell, or imports into the United States a patented product or performs all of the stages of a patented technique, direct infringement occurs. Indirect infringement occurs when the defendant, rather than committing direct infringement, causes another party to do so.

Q5. What are the three forms of IPR infringement?

Ans. Infringements of Intellectual Property Rights (IPR): In this case, intellectual property infringement might take the form of trademark infringement, copyright infringement, patent infringement, and so on. Patents Act, 1970; Trademarks Act, 1999; Copyrights Act, 1957; Designs Act, 2001, and other intellectual property laws control and safeguard intellectual property rights in India.