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In 1881, Congress passed a new trademark act, this time pursuant to its Commerce Clause powers. The Trade Marks Act 1938 in the United Kingdom set up the first registration system based on the “intent-to-use” principle.

The use of a trademark in this way is known as trademark use.

Certain exclusive rights attach to a registered mark.

Trademarks can be licensed to others; for example, Bullyland obtained a license to produce Smurf figurines; the Lego Group purchased a license from Lucasfilm in order to be allowed to launch Lego Star Wars; TT Toys Toys is a manufacturer of licensed ride-on replica cars for children.

The unauthorized usage of trademarks by producing and trading counterfeit consumer goods is known as brand piracy.

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It should be noted that trademark rights generally arise out of the use of, or to maintain exclusive rights over, that sign in relation to certain products or services, assuming there are no other trademark objections.

Different goods and services have been classified by the International (Nice) Classification of Goods and Services into 45 Trademark Classes (1 to 34 cover goods, and 35 to 45 cover services).

The trademark owner can be an individual, business organization, or any legal entity.

A trademark may be located on a package, a label, a voucher, or on the product itself.

In 1875, the Trade Marks Registration Act was passed which allowed formal registration of trade marks at the UK Patent Office for the first time.