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Section 32 Trade Marks Act 1999 grants PROTECTION OF REGISTRATION on GROUNDS OF DISTINCTIVENESS in CERTAIN CASES — where a trade mark is registered in breach of Section 9(1) (absolute grounds), the registration shall not be declared invalid if:

Athe proprietor pays a one-time penalty fee to the Registrar at the time of challenge (cf. Trade Marks Act 1999, Section 32) (cf. Trade Marks Act 1999, Section 32)
Bthe trade mark, in consequence of use made of it after registration, has acquired a distinctive character before commencement of legal proceedings challenging validity
Cthe registered proprietor has held a licence under any other intellectual property law (cf. Trade Marks Act 1999, Section 32) (cf. Trade Marks Act 1999, Section 32)
Dthe trade mark has been registered in an additional class beyond its original class (cf. Trade Marks Act 1999, Section 32) (cf. Trade Marks Act 1999, Section 32)
Answer & Solution
Correct answer: B. the trade mark, in consequence of use made of it after registration, has acquired a distinctive character before commencement of legal proceedings challenging validity
1. Section 32 Trade Marks Act 1999: 'Where a trade mark is registered in breach of sub-section (1) of section 9, it shall not be declared invalid if, in consequence of the use which has been made of it, it has after registration and BEFORE COMMENCEMENT OF ANY LEGAL PROCEEDINGS CHALLENGING THE VALIDITY OF SUCH REGISTRATION, acquired a distinctive character in relation to the goods or services for which it is registered.' 2. This provides a 'cure' for registrations that were initially invalid for lack of distinctiveness (absolute grounds), if subsequent use has acquired secondary meaning. 3. The cut-off is the date of commencement of validity-challenge proceedings — distinctiveness acquired thereafter cannot save the registration. 4. Hence option A is correct. _Source: Patents Act 1970 / Copyright Act 1957 / Trade Marks Act 1999 (Bare Acts, IPIndia portal + Copyright Office) — Trade Marks Act 1999, Section 32_
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