When Two Nepali Brands Clash: How Disputes Are Resolved

When two Nepali brands claim the same or a confusingly similar mark, the dispute is resolved by the Department of Industry (DoI) under the Patent, Design and Trade Mark Act 1965. The DoI acts as a quasi-judicial body, running opposition hearings, cancellation actions, and enforcement proceedings — all without going to a regular court in the first instance.

Key Takeaways

• Nepal is first-to-file — the party who registers first generally holds the stronger legal position, not the one who used the mark first in the market.
• The 90-day opposition window after publication in the Industrial Property Bulletin is the primary battlefield for brand clashes.
• The DoI's Law Division conducts quasi-judicial hearings that carry the weight of a District Court order.
• Registered marks unused for one year are vulnerable to cancellation — a powerful counter-weapon in disputes.
• Passing-off claims are available even without registration, but they require proving reputation and consumer confusion in court.
• Mediation and negotiation between the parties — often through IP attorneys — resolves most disputes before they reach a formal hearing.

Who decides when two Nepali brands clash?

The Department of Industry (DoI) is Nepal's sole trademark registrar and also its primary trademark tribunal. Under the Patent, Design and Trade Mark Act 1965, the DoI's Law Division runs hearings that carry the authority of a District Court order. This means most brand conflicts never go near a regular courtroom — the DoI handles everything from the initial examination of conflicting applications through to final rulings on oppositions and cancellations.

What is first-to-file and why does it decide most disputes?

Nepal follows a strict first-to-file system. The party who files a valid trademark application first gets the right to register — even if someone else has been using the same mark in the market for years without registering it. This is the single biggest factor in how the DoI resolves clashes. A prior unregistered user has no automatic path to block a later application just by showing earlier use. The lesson is blunt: whoever gets to the DoI first usually wins.

How does the 90-day opposition window work?

Once the DoI examines an application and finds it acceptable, the mark is published in the Industrial Property Bulletin. Any interested party then has 90 days from the publication date to file a formal opposition. This is the primary mechanism for resolving brand clashes before a certificate is issued. An opposition must state the legal grounds — typically that the published mark damages the goodwill of the opponent's existing mark, or that it's confusingly similar to one already registered. The DoI then inquires into the complaint and holds hearings where both sides present evidence. If no opposition is filed within the 90 days and all other requirements are met, the registration proceeds and the certificate is issued — making a later challenge far harder. You can learn about our opposition support services if you need to act on a published mark.

What happens if a registered mark is never used?

Section 18C of the Act gives any party a powerful weapon: if a registered trademark is not put into genuine use within one year of registration, the DoI may cancel it. This prevents companies from stockpiling marks they never intend to use, and it gives a smaller brand a way to knock out a blocking registration. A cancellation petition is filed with the DoI, which then conducts an inquiry. If the registrant cannot prove use, the mark is removed from the register — clearing the path for the challenger's own application.

Can you fight a brand clash without a registration?

Yes — through the common-law doctrine of passing off, which Nepali courts recognise even for unregistered marks. But it's a harder road. You must prove three things: that your brand has built sufficient reputation and goodwill in Nepal, that the other party's use amounts to a misrepresentation likely to confuse consumers, and that this has caused or is likely to cause damage to your business. Unlike an opposition or cancellation at the DoI — which is administrative and relatively quick — a passing-off claim goes through the regular civil courts, takes longer, and costs more. That's why registration matters so much. You can check whether a conflicting mark already exists using our trademark database search.

What are the most common brand-clash scenarios in Nepal?

A real Nepal-style example: two cafés, one name

Imagine "Himalayan Bean" — a popular café in Pokhara that has been serving coffee under that name since 2020 but never registered the trademark. In 2025, a new Kathmandu coffee chain files an application for "Himalayan Bean Coffee" in Class 43 with the DoI. The Pokhara café discovers this when the mark is published in the Industrial Property Bulletin. Because Nepal is first-to-file, the Kathmandu applicant is in the stronger position despite being newer to the market. The Pokhara owner now has 90 days to file an opposition. To succeed, they'd need to show that the Kathmandu application damages the goodwill they've built — a challenging argument without their own registration. In practice, many disputes at this stage end in a negotiated coexistence agreement or a buyout, handled between the parties' IP attorneys before the DoI issues a final ruling. Our team at IP Sewa can help you conduct a thorough trademark search before this kind of clash ever reaches publication.

What are the biggest mistakes businesses make in a brand clash?

A common error we see is waiting too long to act. The 90-day opposition window is strict — miss it, and the conflicting mark proceeds to registration. After that, your only DoI-level option is cancellation, which has narrower grounds. Another mistake is assuming that having a company name registered at the Office of the Company Registrar protects your brand as a trademark — it doesn't. Company registration and trademark registration are completely separate systems in Nepal. A third pitfall is failing to document your brand's use and reputation. Even though Nepal is first-to-file, evidence of extensive market use can strengthen an opposition or passing-off claim. Keep dated records of your first sale, advertising spend, packaging, and any media coverage.

How long does a brand dispute take to resolve?

An uncomplicated opposition at the DoI typically resolves within 6 to 12 months from filing, depending on the complexity and the hearing schedule. A cancellation action takes a similar timeframe. If the dispute escalates to the civil courts through a passing-off claim or an appeal of a DoI decision, it can stretch to two years or more. This is why most brand clashes in Nepal settle before a final ruling — both sides weigh the time and cost of litigation and usually find a commercial compromise. If you're facing a conflict right now, our team can walk you through the options — reach out for a practical assessment.

What legal provisions govern trademark disputes?

The core legal framework sits in Sections 18 through 21C of the Patent, Design and Trade Mark Act 1965, as amended. Section 18 sets the grounds for refusing registration — including that a mark must not damage the goodwill of another's trademark. Section 21A mandates publication and opens the opposition window. Section 18C provides for cancellation on non-use grounds. The Trademark Directives 2072 (2015) add procedural detail on opposition language requirements and enforcement. Nepal's obligations under the Paris Convention and the TRIPS Agreement also influence how the DoI handles disputes involving foreign marks and well-known trademarks. For the full statutory text, refer to the Nepal Law Commission's official repository.

What are your options before a clash turns into a legal fight?

Most disputes never reach the DoI hearing room. When two parties discover a conflict — often through a trademark database search or the Bulletin — the first step is usually a legal notice from one side's IP attorney. This opens a negotiation. Common outcomes include a coexistence agreement (both parties agree to use the mark in different geographic areas or product lines), a licence or consent arrangement, or one party withdrawing their application in exchange for compensation. Only when negotiation fails does the formal opposition or cancellation machinery kick in. Having an experienced IP professional handle this early stage dramatically increases the chance of a quick, cost-effective resolution. You can use our conflict checker tool to assess the risk before a dispute escalates.

In short: Brand clashes in Nepal are resolved through a clear administrative ladder — opposition during the 90-day publication window, cancellation for non-use, and DoI quasi-judicial hearings that replace court litigation in most cases. The first-to-file rule means speed is everything. Negotiated settlement is the real-world norm, but when that fails, the DoI's Law Division has the authority to rule decisively.

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If you've spotted a conflicting mark or received a challenge to your own application, don't wait. Search the trademark database now to understand the landscape, then contact our team for a practical, no-obligation discussion of your options. We'll help you decide whether to oppose, negotiate, or restructure your filing — before the 90-day clock runs out.