The Madrid System, administered by the World Intellectual Property Organization (WIPO), is the primary international mechanism for registering a trademark in multiple countries through a single application. Its history begins with the Madrid Agreement of 1891 and was modernised by the Madrid Protocol of 1995. Nepal is not a member of either treaty, so Nepali businesses must file directly in each target country — and foreign applicants must file directly through a Nepal-based agent at the Department of Industry.
Key Takeaways
- The Madrid System is a WIPO-administered international treaty that lets trademark owners file one application to seek protection in over 130 member countries.
- Its legal foundation rests on two treaties: the Madrid Agreement (1891) and the Madrid Protocol (1995), which fixed the Agreement's key weaknesses.
- Nepal is not a member of either treaty — you cannot use the Madrid System to designate Nepal, and Nepali businesses cannot use it to file abroad.
- All trademark registrations in Nepal go through the Department of Industry under the Patent, Design and Trademark Act 1965, one class per application.
- If your business exports goods or sells services abroad, you must pursue national filings in each target country or use the Madrid System if your home country is a member.
- Understanding the Madrid System's history helps you see why the treaties exist, what problems they solve, and what the options are for a Nepal-based business.
What is the Madrid System for international trademark registration?
The Madrid System is a WIPO-administered international treaty framework that lets a trademark owner file one application, in one language, paying one set of fees to seek trademark protection in over 130 member countries. It simplifies what would otherwise be dozens of separate national filings. The system is built on two legal instruments: the 1891 Madrid Agreement and the 1996 Madrid Protocol, which together form the Madrid Union. A business based in a member country files through its own national IP office, designates the countries where it wants protection, and WIPO handles the centralised processing.
Why was the Madrid Agreement created in 1891?
By the late 19th century, cross-border trade had grown enough that brand owners faced a real headache: protecting a trademark in multiple countries meant filing separate applications in each one, in different languages, under different laws, with different local agents. The Madrid Agreement Concerning the International Registration of Marks, signed on 14 April 1891, was the first attempt to solve this. It created a centralised filing system through the International Bureau of WIPO's predecessor in Berne, Switzerland. A trademark owner from a signatory country could file one application and have it take effect in all other member states — a radical simplification at the time.
What problem did the Madrid Protocol solve in 1995?
The Madrid Agreement had serious flaws that kept major economies out. It required that the international application be based on a home-country registration already granted, not just an application. It also prescribed French as the sole language and set a rigid fee structure. Most critically, the US, UK, and Japan refused to join. The Protocol Relating to the Madrid Agreement, adopted in 1989 and operational from 1995 (effective April 1996), fixed all of this: it allowed an application based on a pending home filing, accepted English and Spanish, gave each designated office 18 months to examine (not 12), and let members keep their own fee schedules. The Protocol turned the Madrid System into a truly global tool.
How does the Madrid System work in practice?
A trademark owner files a single international application through their home country's IP office, which certifies it and forwards it to WIPO. WIPO examines the application for formalities — checking the list of goods and services against the NICE Classification, verifying fees, and confirming the designated countries — then records the mark in the International Register and publishes it in the WIPO Gazette of International Marks. Each designated country's IP office then examines the mark under its own national laws within 12 or 18 months. If no office refuses protection, the mark is protected in that country as if it had been registered there directly. A single renewal at WIPO keeps the entire bundle alive.
Is Nepal a member of the Madrid System?
No. Nepal is not a signatory to either the Madrid Agreement or the Madrid Protocol. This means a foreign company cannot designate Nepal in an international application — to protect a trademark here, you must file a national application directly with the Department of Industry (DoI) through a Nepal-based agent. Likewise, a Nepali business exporting goods or services abroad cannot use the Madrid route from Nepal. You must file national applications in each target country, typically through a local attorney in each jurisdiction. The government has periodically indicated interest in acceding to the Protocol, but no accession has occurred as of 2026.
Why hasn't Nepal joined the Madrid Protocol yet?
Accession to the Madrid Protocol requires a country to have its trademark law and administrative infrastructure meet WIPO's standards for processing international applications within the 12-to-18-month examination window. Nepal's Patent, Design and Trademark Act 1965 (PDTA) is an older statute — a single piece of legislation covering three distinct IP rights — and the DoI's current workflow, which typically takes about 12 to 14 months for a straightforward domestic filing, would need significant reform to handle incoming international designations reliably within the Protocol's deadlines. Joining is a government policy decision that involves legislative amendment, DoI capacity-building, and consultation with stakeholders. Until accession happens, the direct-filing route remains the only option.
| Feature | Madrid Agreement (1891) | Madrid Protocol (1995) |
|---|---|---|
| Basis for international filing | Must already have a home registration granted | Can be based on a pending home application |
| Languages | French only | French, English, and Spanish |
| Examination window for designated offices | 12 months | 18 months (or longer) |
| Fee structure | Fixed by the Agreement | Individual fees permitted per member country |
| Key members | Mostly European and some African states | USA, UK, Japan, China, EU, India, and over 100 others |
| Transformation provision | None — if the basic mark is cancelled, the international registration collapses entirely | Central attack provision: if the basic mark is cancelled within 5 years, you can transform into national applications preserving the original date |
| Nepal membership | No | No |
What does the Madrid System mean for a Nepali business exporting abroad?
If you run a Nepali pashmina brand, a tea exporter, or a software company selling into international markets, the fact that Nepal sits outside the Madrid System creates a practical burden. You cannot file one international application from Kathmandu and designate the US, EU, Japan, and India in a single stroke. Instead, you — or a network of foreign attorneys you engage through our team — must file separate national trademark applications in each country. The cost and administrative load are higher, and you need to track renewal deadlines per jurisdiction. Our team at IP Sewa can help you identify local counsel in your target markets and coordinate filings so your brand stays protected as you grow. Start by reaching out through our contact page.
How did the Madrid System expand after the Protocol?
The Protocol's flexibility triggered rapid growth. The European Union joined in 2004, giving a Madrid applicant access to all EU member states through a single designation. The United States had joined in 2003, removing the largest previous holdout. By 2026, the Madrid Union covers over 130 countries representing more than 80% of global trade. WIPO's statistics show that international applications under the system have grown steadily year on year, with the largest filers now including companies from China, the US, Germany, the UK, and Switzerland. The system processes tens of thousands of international registrations annually, making it the dominant route for cross-border brand protection worldwide.
What are common misconceptions about the Madrid System and Nepal?
A frequent mistake we see is the assumption that an international trademark registration automatically extends to Nepal or that Nepal, as a WTO and Paris Convention member, must also be a Madrid member. These are separate treaty commitments. The Paris Convention, to which Nepal acceded in 2001, gives a foreign applicant a six-month priority right to file in Nepal after filing in another Paris Convention country — but it does not create an international registration system. Another misconception is that a WIPO registration alone gives "global" protection. It does not: protection is always territorial, and a mark is only protected in the countries that are designated and that do not refuse it.
What practical steps should a Nepali business take for foreign trademark protection?
First, identify the countries where you actually sell, manufacture, or plan to enter within the next three to five years — filing everywhere is unnecessarily expensive. Second, conduct a trademark search in each target country through a local agent or that country's online IP database. Third, file national applications in priority order, using the Paris Convention six-month window if you have recently filed in Nepal. Fourth, track each jurisdiction's renewal deadlines independently — there is no single WIPO renewal for a set of separate national registrations. Our team can help coordinate the search and filing process across jurisdictions; reach out through our contact page or use our trademark database search to check the Nepal side first.
What is the legal basis for trademarks in Nepal without the Madrid System?
Trademark rights in Nepal rest on the Patent, Design and Trademark Act 1965, administered by the Department of Industry. Under Section 16 of the PDTA, title to a trademark is acquired only upon registration — Nepal is a first-to-file jurisdiction, not a first-to-use one. A mark is registered for seven years and is renewable indefinitely for further seven-year terms under Section 23B. Foreign applicants who are nationals of a Paris Convention country may claim a six-month priority right under Section 21B, but they must still file a national application through a Nepal-based agent with a notarised Power of Attorney. The full statute is accessible through the Nepal Law Commission.
In short
The Madrid System's history — from the 1891 Agreement through the transformative 1995 Protocol — gave the world a practical way to protect a trademark across borders with one filing. But Nepal's absence from the system means the rules are different here: all trademark work flows through the Department of Industry, one application per NICE class, with a 12-to-14-month timeline and a seven-year renewable term. If your business operates across borders, you need a strategy that handles the Nepal piece under the PDTA and the international piece jurisdiction by jurisdiction — and that starts with knowing the options clearly.
Start with a trademark search on our database to check the Nepal side, try the NICE class finder to identify the right classes for your goods or services, or contact our team to discuss your cross-border filing strategy.
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