What Is Trademark Squatting and How Do I Avoid It?

Q: What is trademark squatting and how do I avoid it?

Trademark squatting is when someone files for a mark they don't genuinely intend to use themselves — often a brand entering a new market — hoping to sell it back to the real owner or block their entry. The main defense is filing early, even before you're using the mark in India, since Indian law allows 'proposed to be used' applications.

Trademark squatting is the bad-faith registration of a name, logo, or brand by someone who has no genuine intention of using it — usually done to block a legitimate business from entering a market, or to extract a payout for "releasing" the mark.

How it typically happens

The classic pattern: a brand builds recognition in one country and delays filing in India, and a third party files for the identical or a deceptively similar mark in India first — sometimes across multiple related classes — before the real brand gets there.

Why India's system doesn't stop this automatically

India generally examines applications on a first-to-file basis for registration purposes, but registration isn't the only thing that matters — genuine prior use and reputation still count. That's why squatting isn't automatically fatal to the real brand owner, but fighting it after the fact through opposition or rectification proceedings, or arguing passing off or well-known mark status, is slower and costlier than simply filing first.

How to avoid it

File early, even before you're selling in India. The Trade Marks Act allows applications on a "proposed to be used" basis — you don't need existing Indian sales to file.
File in the classes you'll realistically expand into, not just your current core offering.
Monitor the Trade Marks Journal for applications that resemble your mark, so you can oppose within the four-month window instead of discovering a squatter's registration years later.
Don't assume international registration protects you in India — trademark rights are territorial, and a US or EU registration gives you no standing in India on its own.

See our complete guide to trademark squatting in India for the legal remedies available and how to prevent it, and our guide on registering before you launch, not after for why timing is the biggest lever here. The full filing process is covered in our trademark registration guide.