Nepal cracks down on Trademark violations: Govt issues ultimatum to firms accused of copying global brands

KATHMANDU: Nepal has stepped up enforcement on intellectual property rights after multiple multinational corporations—including The Coca-Cola Company, Zoom Communications, and Hugo Boss—filed complaints alleging trademark infringement by domestic firms.

The Department of Industry has issued a 7-day ultimatum to 11 Nepali companies accused of copying or closely imitating globally recognized trademarks. The move follows repeated non-compliance by the firms, which failed to respond to earlier legal notices.

Legal Action Triggered by Non-Response

According to the department, the accused companies were previously served notices along with copies of complaints under Nepal’s prevailing summary procedure law. However, after receiving no written responses or compliance reports, authorities escalated the matter by issuing a public notice.

The department has warned that if the companies fail to submit written explanations within seven days (excluding travel time), unilateral legal action will proceed under applicable laws.

Global Brands Flag Local Imitations

The complaints highlight a growing trend in Nepal where local manufacturers adopt brand names or trademarks resembling international products, raising concerns over consumer deception and intellectual property violations.

Key cases include:

The Coca-Cola Company filed complaints against Sunsari-based Premier Organs Pvt. Ltd. for using the brand “Palpal Cola”, and against Pathibhara Food & Packaging Industry for products labeled “Cool Cola” and “Super Fantastic”, allegedly mimicking Coca-Cola and Fanta branding.

Zoom Communications challenged Jhapa-based Kavish Marketing Pvt. Ltd. over the use of “Kavish Zoom Cosmetics”, claiming unauthorized use of its globally recognized name.

Hugo Boss lodged a complaint against Immanur Fashion Wear Industries for using the trademark “Boss”, citing infringement on its premium fashion label.

Turner Entertainment, associated with brands like Cartoon Network, filed complaints against multiple Nepali firms over products including “Kingcorn Lottery” and “Jerry’s Cone”, alleging similarity to protected intellectual properties.

Energy Brands raised concerns against products such as “ANBS Good Drinks” and “DG Smart H2O” for potential brand imitation.

Kathmandu Limited objected to the use of “The One Kathmandu” by a local textile firm.

Trek Bicycle Corporation filed a complaint against Birgunj-based “Turbo Trek” for trademark similarity.

Rising IP Concerns in Nepal’s Growing Market

Nepal has seen increasing awareness and registration of intellectual property rights in recent years. However, regulators say the parallel rise in lookalike branding and trademark imitation—especially targeting well-known global names—poses risks to consumer trust, fair competition, and international trade credibility.

Stronger Enforcement Signals Policy Shift

The latest action by the Department of Industry signals a tougher regulatory stance on trademark protection, particularly as foreign companies directly engage Nepal’s legal system to defend their brands.

Legal experts say failure to comply within the stipulated timeframe could result in penalties, cancellation of trademarks, or further enforcement measures, potentially setting precedents for stricter intellectual property governance in Nepal.

The crackdown comes at a critical time as Nepal seeks to improve its investment climate, trade compliance standards, and global business reputation, where protection of intellectual property is a key benchmark for international investors and multinational partnerships.