Legal guidance

Frequently Asked Questions

Clear answers to common questions about intellectual property registration, protection and enforcement.

Digital Assets and Blockchain

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Can the software behind a blockchain project be protected?

Source code is protected as a literary work under the Copyright Act 2059, and that protection arises on creation rather than on registration. Whether the project entity owns it depends on the agreements with the developers who wrote it, since contributors retain rights unless those rights have been assigned.

How is a brand protected for a digital asset platform?

Through trademark registration for the platform and product names in the relevant classes, administered by the Department of Industry, alongside consistent management of domains and account names.

What data protection obligations apply to a platform?

Where a platform collects or processes personal information, obligations arise under the Individual Privacy Act 2075 affecting consent, notice, and how that information is stored, shared and secured. The Electronic Transactions Act 2063 is also relevant to electronic records and transactions.

Fintech and Digital Finance

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What protects a fintech platform's brand and software?

Trademark registration for the platform and product names, administered by the Department of Industry, protects the brand. The software and interface are protected as copyright works under the Copyright Act 2059 from the point of creation, provided the business holds those rights from whoever wrote them.

What data protection obligations apply to a digital finance product?

Products that collect or process personal information carry obligations under the Individual Privacy Act 2075 covering consent, notice, storage and disclosure. The Electronic Transactions Act 2063 is also relevant to electronic records and transactions.

Can customer-facing claims about a financial product create liability?

Representations about rates, fees, returns or guarantees can be challenged under the Consumer Protection Act 2018 on the basis of how a product was described, separately from the question of whether it performs as intended.

How long does a patent last?

Seven years from registration, renewable for two further terms of seven years each, giving a maximum of twenty-one years.

Can I use a PCT application to get protection?

No. Nepal is not a Patent Cooperation Treaty contracting state, so an international application cannot be used to enter the country. A direct national filing is required.

How long is the priority period?

Twelve months from the first convention filing, supported by a certified copy of the priority documents.

What is the penalty for patent infringement?

A fine of up to five hundred thousand rupees. An abettor who attempts to infringe without succeeding faces up to two hundred and fifty thousand rupees.

What can stop a patent being registered?

Section 6 refuses registration where the patent is already registered to someone else, the applicant is neither the inventor nor a person who acquired rights from the inventor, or the patent would adversely affect public health, conduct, morality or the national interest.

Industrial Designs

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How long does design protection last?

Five years from registration, renewable for two further terms of five years each, to a maximum of fifteen years.

Can I register a design after launching the product?

No. The application must be filed before any commercialisation or public display. Prior disclosure can disentitle the owner entirely, and the loss is not recoverable.

How long is the priority period for designs?

Six months from the first filing in a Paris Convention country.

What is the penalty for design infringement?

A fine not exceeding fifty thousand rupees, with the goods connected to the offence confiscated on the order of the Department of Industry.

Is Nepal party to the Hague Agreement?

No. An international design registration does not extend to Nepal, so a national application is required.

What does a sports lawyer advise on?

Sports-law advice may cover athlete and coaching agreements, sponsorship, endorsements, events, media rights, merchandising, employment, governance, intellectual property and disputes.

What is ambush marketing in sport?

Ambush marketing generally describes promotional activity that creates an unauthorised association with an event, team or tournament and may undermine official sponsorship rights.

Can sports names, logos and merchandise be protected?

Depending on the asset and circumstances, protection may involve trademarks, copyright, designs, contracts and enforcement against counterfeit or unauthorised merchandise.

Do I have to register copyright?

No. Under section 5 of the Copyright Act 2059 protection extends to any original work regardless of registration. Registration is still recommended, because in a dispute the question is whether you can prove authorship and date.

How long does copyright last?

For the life of the author and a further fifty years after death.

Are computer programs protected?

Yes. The Act lists computer programs among protected works, alongside literary, artistic, musical, dramatic and audiovisual works.

How long are anonymous works protected?

Fifty years from first publication or from the date the work is made public, whichever is earlier.

Can moral rights be assigned?

No. Moral rights are inalienable under the Act. Even where economic rights have been fully assigned, the author may still exercise them.

Infringement & Anti-Counterfeiting

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Does Nepal have a customs recordal system?

Not a formal one. There is no dedicated register, but the Customs Act 2007 lets officers act against goods suspected of infringing intellectual property, and rights holders can notify Customs and the Department of Industry directly with certificates, specifications and images of genuine goods.

What is the penalty for trademark infringement?

Section 19 provides a fine not exceeding one hundred thousand rupees, together with confiscation of the goods connected with the offence according to its gravity.

What remedies are available against counterfeiters?

Administrative complaint to the Department of Industry, civil action for injunction, compensation and seizure, criminal prosecution where the offence is made out, and monetary penalties under the Consumer Protection Act 2018.

Which sectors are most affected?

Cosmetics, electronics and readymade garments see the most counterfeiting, with cosmetics and electronics carrying genuine safety risk alongside the commercial harm.

IP Contracts & Franchising

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Does an assignment have to be recorded?

Yes. Transfers and approvals for use are recorded with the Department of Industry, generally on a joint application by transferor and transferee with the prescribed fee.

What does an assignment cost?

The official assignment fee is 2,000 rupees for a trademark and 5,000 rupees for a patent. These are government charges only and are revised from time to time.

Why does the chain of title matter so much?

Because the Department will refuse or cancel registration where the applicant is not the true owner or has not properly acquired the rights. A defective assignment becomes a registration problem and then an enforcement problem.

What should a trademark licence contain?

The registrations it sits on, territory and term, exclusivity, permitted goods or services, quality control, royalty and audit mechanics, sub-licensing, treatment of goodwill, termination and who may enforce against third parties.

AI & Technology Law

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What legal issues can arise when a business uses artificial intelligence?

Key issues may include governance, data use, privacy, intellectual-property ownership, third-party tool terms, cybersecurity, consumer protection, online content and technology-related liability.

Can legal action address deepfakes or digital impersonation?

Available options depend on the facts, but may involve rights relating to image or likeness, intellectual property, deceptive content, platform procedures, evidence preservation and civil or regulatory remedies.

Who owns AI-assisted or AI-generated work?

Ownership depends on the applicable law, human contribution, contracts, tool terms and source materials. These factors should be assessed before commercial use or licensing.

IP Litigation

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Where do intellectual property disputes start?

Most begin before the Department of Industry, which decides trademark, patent and design matters at first instance, including opposition and cancellation.

How long do I have to appeal a Department decision?

Thirty-five days, to the High Court, under section 27 of the Patent, Design and Trade Mark Act.

What evidence should I gather before bringing a claim?

Dated screenshots and listings, invoices, packaging and physical samples, seller and distributor details, delivery records, and where appropriate controlled purchases with a preserved chain of custody, collected before the other side is alerted.

Do I have to litigate?

Often not. A cease and desist letter, a marketplace takedown, a negotiated undertaking, an opposition or an administrative complaint may end the trade at lower cost and lower risk.

Geographical Indications

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Does Nepal have a geographical indication law?

Not a dedicated one. There is no sui generis GI register, so origin-linked names are protected in practice through registration of a collective trademark.

Which Nepali products could qualify?

Products with a genuine link between quality or reputation and place: Ilam tea, Jomsom apple, Khukuri, Palpali Dhaka, Yarsagumba and Bhaktapur's Juju Dhau among them.

What does a collective mark application need?

A defined product specification, a defined geographical area, a body able to hold the mark on behalf of producers, and rules of use that can actually be enforced against a member who falls short.

How is misuse of a regional name stopped?

Through opposition and cancellation of conflicting marks, administrative complaint, action under the Consumer Protection Act 2018 and, where necessary, litigation.

Corporate and Commercial Law

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Does a foreign investor need approval to invest?

Yes. Foreign investment requires approval under the Foreign Investment and Technology Transfer Act 2075 (2019), from the Department of Industry or, for larger projects, the Investment Board Nepal. The investment must then be recorded with Nepal Rastra Bank, and that recording is what permits later repatriation of dividends and capital. Does Nepal have merger control? | No. The Competition Promotion and Market Protection Act 2063 (2007) contains no pre-closing merger notification or clearance requirement, so there is no competition filing on the deal timetable. Anti-competitive agreements and abuse of a dominant position are still regulated. Can a foreign company own land? | Generally no. Land holding by foreign nationals is restricted, and a foreign-invested company may acquire land only within the limits that apply to its registered industry. A long lease is the usual route, and the structure should be settled before a site is committed to. Which forum hears commercial disputes? | The ordinary courts. Nepal has no company law tribunal of the kind found in some neighbouring jurisdictions; commercial matters are heard by the courts, with a commercial bench at the High Court, and insolvency runs under the Insolvency Act 2063 (2006). What are the main employment compliance obligations? | The Labour Act 2074 (2017) and Labour Rules 2075 (2018) govern contracts, working conditions, disciplinary process and termination. Contributions to the Social Security Fund are required under the Social Security Act 2074 (2017), and annual bonus is payable under the Bonus Act 2030 (1974). Does Nepal have a data protection or artificial intelligence law? | Nepal has the Individual Privacy Act 2075 (2018) for personal data and the Electronic Transactions Act 2063 (2008) for electronic records and contracting. There is no dedicated artificial intelligence statute, so AI governance is built on privacy, consumer and intellectual property law.

Fashion Law

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Which intellectual-property rights matter to fashion businesses?

Fashion businesses commonly rely on trademarks, designs, copyright, trade secrets and contracts to protect brand names, logos, garments, prints, packaging and confidential know-how.

Can Apex Law Chamber assist with fashion licensing and collaborations?

Yes. We advise on licensing, franchising, distribution, designer collaborations, manufacturing, sourcing and supply arrangements involving fashion and luxury businesses.

How can fashion brands respond to counterfeits?

A response may combine market or online investigation, evidence preservation, platform action, legal notices, administrative measures, negotiation and litigation, depending on the facts.

Franchising

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What should a franchise agreement cover?

A franchise agreement should clearly address brand use, operating standards, territory, fees, training, supply, quality control, confidentiality, intellectual property, term, termination and dispute resolution.

How should a foreign brand prepare to franchise?

Preparation commonly includes reviewing the proposed structure, local contracts, brand protection, approvals and registrations, payment arrangements, tax coordination and enforceability.

Why is trademark protection important before franchising?

The brand is central to a franchise relationship. Early trademark clearance and protection help reduce ownership conflicts and support controlled licensing and enforcement.

IT and E-Commerce Laws

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What legal documents does an e-commerce business need?

The documents depend on the model but may include platform terms, privacy notices, seller or vendor agreements, payment and logistics contracts, consumer policies and intellectual-property licences.

How can online platforms manage intellectual-property complaints?

Platforms should use clear notice procedures, preserve relevant records, assess rights and listings consistently, communicate decisions and address repeat infringement proportionately.

Can Apex Law Chamber advise on cross-border technology transactions?

Yes. We advise on software, cloud, platform, licensing and other technology arrangements while coordinating Nepalese requirements with the wider cross-border structure.