A and B are involved in a trademark infringement dispute. The dispute is referred to a sole arbitrator who passes an award declaring A to be the owner of the trademark. Subsequently, A assigns this trademark to C without any consideration. Which of the following statements is most accurate about whether such an assignment agreement is compulsorily registerable under the Registration Act, 1908 and why ?

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49.

A and B are involved in a trademark infringement dispute. The dispute is referred to a sole arbitrator who passes an award declaring A to be the owner of the trademark. Subsequently, A assigns this trademark to C without any consideration. Which of the following statements is most accurate about whether such an assignment agreement is compulsorily registerable under the Registration Act, 1908 and why ?

Principle:

Non-testamentary instruments transferring or assigning any decree or order of court or any award when such decree, order, or award purports or operates to create, declare, assign, limit, or extinguish, whether in the present or in the future, any right, title, or interest, whether vested or contingent, to or immovable property, are compulsorily registerable.

A: No, it is not compulsorily registerable because only orders of a court that declare rights are compulsorily registerable.

B: Yes, it is compulsorily registerable because all non- testamentary instruments assigning an award that declare a right need to be registered.

C: No, it is not compulsorily registerable because it assigned intellectual property, which is not immovable property.

D: No, it is not compulsorily registerable because a settlement agreement is a testamentary instrument.

E: Yes, it is compulsorily registerable since immovable property also includes intellectual property.

The answer is: C

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Explanation

The correct answer is C. No, it is not compulsorily registerable because it assigned intellectual property, which is not immovable property.

This statement is the most accurate because it correctly applies the principle to the facts of the case. The principle states that only non-testamentary instruments transferring or assigning any decree, order, or award that create, declare, assign, limit, or extinguish any right, title, or interest to or in immovable property are compulsorily registerable. Intellectual property, such as a trademark, is not immovable property, but rather a type of intangible property. Therefore, the assignment agreement between A and C is not compulsorily registerable under the Registration Act, 1908. The other statements are inaccurate because they either misinterpret the principle or the facts of the case.

For example, statement A is inaccurate because it ignores the fact that an award is also a type of decree or order that can be transferred or assigned. Statement B is inaccurate because it does not specify that the right, title, or interest must be to or in immovable property. Statement D is inaccurate because it confuses a settlement agreement with a testamentary instrument. Statement E is inaccurate because it wrongly assumes that immovable property includes intellectual property