Trademark squatting — the deliberate registration of someone else's brand name or logo for the purpose of extortion or competitive harm — is one of the fastest-growing legal threats to Indian businesses. IP India receives over 3.5 lakh trademark applications annually, and a meaningful percentage are filed by parties who have no legitimate claim to the marks they are registering.
How trademark squatting works
The mechanics are straightforward. A bad actor identifies a growing brand — often a startup, D2C company or content creator — whose name is not yet trademarked. They file an application in one or more relevant classes before the legitimate owner does. Once registered, they approach the legitimate brand owner demanding payment to transfer the registration. Alternatively, they use the registered trademark to send cease-and-desist notices to the original brand, forcing them to rebrand or litigate.
Why Indian startups are particularly vulnerable
Most Indian founders — even well-advised ones — treat trademark registration as a task for Year 2 or Year 3. They focus on product, customers and revenue first, which is rational. The problem is that your brand becomes more valuable as your business grows — and squatters specifically target growing brands precisely because the threat of forced rebrand becomes more costly over time.
What it costs to fight back
If someone else has registered your brand name, your options are: file an opposition or rectification petition with IP India, which takes 2–5 years and significant legal fees; or negotiate a transfer, which typically costs several multiples of what a preventive trademark registration would have cost. The economics of prevention are obvious.
Protection is cheaper than you think
Trademark registration in India costs ₹4,500–₹9,000 in official fees per class, plus professional fees. The total protection cost for a startup protecting its brand across two relevant classes is typically under ₹15,000. The cost of fighting a squatter or forced rebrand starts at ₹2–5 lakhs and can reach multiples of that. The maths are clear.
What to do right now
If your brand name is not yet trademarked, run a search on the IP India database — or let Vilot do it as part of our trademark service. If the name is available, file immediately. If someone has already registered something confusingly similar to your mark, speak to a trademark specialist before taking any action. Early advice is dramatically cheaper than late litigation.