Key Legal Insights & Impact 

On August 5, 2026, the Supreme Court of Nepal issued a landmark judgment in favor of Visa International Service Association against local manufacturer Perfect Blends (Nepal) Pvt. Ltd. By upholding the decision of the High Court, the apex tribunal firmly established cross-class protection for world-renowned brands, delivering what stands as a pioneer decision on the doctrine of trademark dilution in Nepalese legal history.

The central legal issue originated when Perfect Blends sought to register the globally recognized "VISA" mark under Nice Class 34 for cigarettes and tobacco products, despite Visa International’s mark being registered under Nice Class 16(paper goods and printed materials) and Class 36 (financial and monetary services). Under strict interpretations of legacy trademark frameworks, rights were often limited to the specific class of registration. However, the Supreme Court rejected this restrictive approach, concluding that allowing local entities to adopt globally famous marks—even on completely unrelated or non-competing goods—unfairly exploits brand equity and weakens the unique identity of the original trademark.

By codifying protection against trademark dilution, the Supreme Court recognized that famous trademarks possess goodwill that transcends product categories. Unauthorized commercial use dilutes that commercial distinctiveness and misleads consumers. Furthermore, this ruling seamlessly aligns Nepal’s domestic IP jurisprudence with international standards under Articles 16(2) and 16(3) of the TRIPS Agreement and the Paris Convention.

For foreign investors and global entities, this verdict sets a critical precedent: bad-faith local registrations and trademark squatting can no longer hide behind administrative product class distinctions in Nepal.