Under the Intellectual Property Code, which scenario will result in cancellation of a mark?

• A. Lack of funds
• B. Abandonment due to voluntary cessation of business operations
• C. Abandonment due to government order
• D. None of the above.

Answer: (B)

In the Intellectual Property Code, a registered mark can be canceled when the owner abandons it, which is shown by clear non-use or by voluntary cessation of business operations. When a business stops operating on its own, it signals that the mark is no longer being used in commerce and there is no intent to resume use, so cancellation of the mark registration is warranted. Lack of funds by itself doesn’t prove abandonment—financial difficulties don’t automatically equal non-use for the required period. A government order forcing a shutdown doesn’t inherently equate to voluntary abandonment by the owner, and therefore isn’t the same grounds for cancellation. Thus, the scenario where the owner voluntarily ceases business operations best fits the ground for cancellation.