IP Due-Diligence Checklist (Nepal)

An IP due-diligence checklist for Nepal verifies whether trademarks, patents and designs are owned, registered, current and free from known disputes. The Department of Industry (DoI) administers these rights under the Patent, Design and Trademark Act 1965, while a full review checks records, documents, use and deal risks.

Key Takeaways

• Nepal follows a first-to-file system: priority usually follows the first valid application, not the first business to use a name.
• Check the DoI record, certificate, Industrial Property Bulletin and ownership documents together. One source alone is not enough.
• Map the target’s real products and services against the 45-class NICE Classification. Nepal requires one trademark application per class.
• Confirm each trademark’s seven-year term, renewal history and next deadline. A missed renewal can cancel the registration.
• Review Bulletin publications and the 90-day trademark opposition period before treating a pending mark as secure.
• Trace assignments, licences, mergers and company-name changes. A seller’s internal agreement may not prove a clean recorded title.
• Foreign registrations do not automatically protect a brand in Nepal. A foreign owner files directly through a Nepal-based representative.

What does IP due diligence mean in Nepal?

IP due diligence in Nepal verifies the legal and commercial position of intellectual-property assets before a transaction. The review covers ownership, registration, scope, renewal, use and disputes under the Patent, Design and Trademark Act 1965. It is different from a quick name search because it tests whether the asset can safely support the deal.

“IP” means intellectual property: legally protected creations such as a trademark, patent or industrial design. A trademark identifies goods or services through a word, symbol, picture or combination. A patent protects an invention, while an industrial design protects a product’s visual appearance.

A proper review also separates registered rights from business claims. A popular name, logo, domain name or social-media page may show market use, but it does not replace Nepal registration. Copyright may matter for artwork, software or content, but it sits under a separate legal regime and should be reviewed separately.

Why should you complete a pre-investment IP check?

A pre-investment IP check shows whether the value you are buying can actually be controlled in Nepal. The DoI grants trademark title through registration, and Nepal’s first-to-file system makes an earlier valid application highly significant. A weak title, missed renewal or wrong class can reduce the value of a brand after closing.

Imagine a Kathmandu food business called “Himalayan Hearth.” Its signs and packaging are well known, but its registration covers only restaurant services. It later sells packaged sauces under the same logo. Class 43 may cover the restaurant, while packaged goods may require a different goods class. The business has grown beyond its original filing.

Due diligence helps you price that risk, require corrective filings, hold back part of the consideration, obtain warranties, or delay closing. It also identifies possible infringement claims against the target. A clean search is not a guarantee, but an unexplained gap is a warning.

Who needs an IP due-diligence checklist?

Investors, buyers, lenders, licensees and franchisees should review IP before relying on a Nepali brand or invention. The same applies to foreign companies entering Nepal, companies buying a local business, and founders transferring assets to a new company. The depth of review should match the asset’s importance to revenue.

• Acquirers: verify that the seller owns each mark, patent and design being transferred.
• Investors: test whether the company’s claimed brand value rests on registered rights or only goodwill.
• Licensees and franchisees: confirm the licensor can grant the territory, goods and services promised.
• Lenders: check whether an asset is already assigned, licensed or pledged.
• Foreign owners: remember that Nepal is outside the Madrid System and PCT. Direct national filing through a Nepal-based agent is needed.

Check the target’s legal name against the Office of the Company Registrar (OCR), then compare it with the DoI applicant or owner name. Similar names can reflect a genuine name change, but they can also reveal a missing assignment.

Which NICE classes should you check?

Your class map must match every product and service the business sells in Nepal. The NICE Classification has 45 classes: Classes 1–34 cover goods and Classes 35–45 cover services. Nepal requires one trademark application per class, so a registration in one class does not automatically cover another.

These are examples, not a complete answer for every business. A clothing company may need Class 25 and Class 35. A restaurant selling branded packaged food may need goods coverage as well as Class 43. Use the NICE class finder and compare its result with the certificate and actual sales.

Check word marks and logos separately. DoI search tools may work better for words than figurative elements, so inspect the logo, spelling, transliteration and overall presentation.

How do you conduct IP due diligence in Nepal?

Follow a written, asset-by-asset review before signing or closing the transaction. Start with the target’s own schedule, then test every claim against DoI records, certificates, Bulletin publications and underlying agreements. Record the result as clear, incomplete, disputed or requiring legal action.

1. Build the asset list. Include wordmarks, logos, taglines, product names, patents, designs, domain names, packaging and important unregistered assets.
2. Search the Nepal record. Search the mark, variations, transliterations, owner name and application or registration number. The Nepal trademark search database is useful for locating relevant entries.
3. Match the owner. Compare the DoI record with the target’s OCR name, acquisition documents and corporate history. Note spelling differences and former names.
4. Check scope. Read the certificate, not just the brand name. Confirm the exact mark, class, goods or services, filing date, registration date and registration number.
5. Trace title. Review assignments, mergers, licences, name changes and powers of attorney. Ask whether each transfer or endorsement was recorded with the DoI.
6. Review publication risk. Check the Industrial Property Bulletin for applications, registrations, renewals, cancellations and relevant opposition activity. A trademark opposition may be filed within 90 days of publication.
7. Check renewal and use. A trademark lasts seven years and is renewable. Confirm renewal history, expiry, use in Nepal and evidence such as packaging, invoices or advertising.
8. Report the gaps. State the risk, affected asset, evidence missing, recommended remedy and whether the issue should be resolved before closing.

For a deeper professional review, a Nepal trademark search and clearance review can assess conflicts beyond a basic database lookup. Our team can help with trademark, patent, design and opposition matters through a direct review of your transaction.

Which documents should you request?

Request original or certified records that prove identity, title, scope and continuing validity. The document set differs by asset and owner, but a missing certificate or unexplained transfer should remain an open diligence item. Do not accept a marketing deck as proof that an IP right exists.

• DoI registration certificates, application acknowledgements and registration numbers.
• Trademark labels, wordmark versions, logo files and the goods or services claimed.
• Assignment, licence, franchise, merger and company-name-change documents.
• Renewal receipts, endorsements, cancellation notices and correspondence with the DoI.
• For patents: the specification, claims, drawings, priority documents and renewal records.
• For designs: the representations, plan, elevation and side views, originality claim and priority papers.
• For foreign applicants: a notarised or certified home registration or filing record, English materials where required, and the Nepal-based agent’s Power of Attorney.
• Evidence of use, including invoices, packaging, advertisements, sales records and distribution agreements.

Ask the seller to confirm all known disputes, cease-and-desist letters, coexistence arrangements and licences. Check whether employees, founders or contractors created the logo, invention or design and whether written assignments support the company’s claim.

What red flags should an IP audit in Nepal identify?

An IP audit should flag defects that affect ownership, scope, validity, enforcement or deal value. The most serious problems are not always visible in a name search. They often appear when the certificate, corporate records, commercial use and transaction documents tell different stories.

Also watch for a mark that is too close to an existing mark, a logo used differently from the registered label, a patent whose claims do not match the product, and a design whose drawings do not match the goods sold.

How long does IP due diligence take in Nepal?

The review time depends on asset count, document quality and the target’s cooperation. A small trademark audit may move quickly, while a group with several classes, patents, designs and historical transfers needs more time. The filing system itself typically takes about 12–14 months when unopposed, but due diligence should finish before closing.

Pending trademark applications need special care. The normal registration sequence is application, DoI examination, Industrial Property Bulletin publication, a 90-day opposition window, registration and certificate. A pending application is not the same as a registered mark.

What does IP due diligence cost in Nepal?

The total cost depends on asset count, classes, government charges and professional work. Nepal’s one-class trademark structure can increase the work for brands covering several activities. Patent claim review, design drawings, foreign documents, title corrections and opposition analysis also affect the scope.

Separate government and professional costs in your transaction budget. A simple database search is not the same as a written clearance opinion, full title review or dispute assessment. For a current estimate, use the relevant IP tools and fee calculator, then send commercial questions to our team.

What legal rules shape intellectual property verification?

The Patent, Design and Trademark Act 1965 supplies Nepal’s core rules for registration, classification, ownership and renewal. Trademark reviews commonly engage Sec. 16, Sec. 18, Sec. 18A, Sec. 18C, Sec. 18D, Sec. 21A and Sec. 23B. Read the official Nepal law resources alongside current DoI practice.

Sec. 18A supports class-based filing, with a separate application for each class. Sec. 18C makes non-use after registration a concern, and Sec. 18D sets the seven-year trademark term. Sec. 21A concerns publication and opposition. Sec. 23B addresses renewal.

Nepal’s international setting matters too. Nepal is a member of the Paris Convention and bound by TRIPS, but it is not in the Madrid System for trademarks or the PCT for patents. A foreign registration therefore needs a direct Nepal filing. The Department of Industry remains the key national authority.

What are the main alternatives and edge cases?

Not every concern is solved by registering one trademark. A business may need several classes, a separate logo filing, a patent or an industrial-design application. A company name at the OCR is not a trademark registration, and a domain name does not establish trademark title.

• Pending application: treat it as an expectation, not a completed right, until registration and certificate issuance.
• Unregistered brand: record the gap and consider a new Nepal filing before closing, subject to clearance.
• Foreign owner: appoint a Nepal-based representative and verify priority documents where a Paris Convention claim is made.
• Patent or design: apply the same title and renewal logic, but check the different documents and opposition period. Patent and design objections use a 35-day period after publication.
• Possible infringement: preserve evidence and obtain advice before sending demands or changing the transaction.

This article is practical information, not a legal opinion. The right remedy depends on the record, contract and evidence available.

In short, what should your report conclude?

Your report should state what exists, who owns it, what it covers, whether it remains current and what must happen next. Mark every item as verified, incomplete, disputed or corrective action required. Do not call an asset “clean” merely because a word search produced no obvious conflict.

• Identify every relevant IP asset and unregistered gap.
• Verify DoI ownership, class, status and certificate details.
• Trace assignments, licences and corporate name changes.
• Check the Industrial Property Bulletin and opposition exposure.
• Confirm renewal, use and transaction documents before closing.

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Start your Nepal trademark search before signing, then ask our team through IP Sewa’s contact page for help with a trademark audit, ownership issue, patent, design or opposition review.