Even as the Indian government tries its level best to promote 'khadi', it seems the brand has already been trademarked in countries like Germany, Spain and Hungary. The government is said to be mulling a furture course of action. This might include taking up the issue with the European authorities.

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The Narendra Modi government has objected to the German company's attempt to use the khadi trademark for selling a range of Indian-origin products, including shampoos, soaps and oils in European markets. The Khadi and Village Industries Commission (KVIC), an arm of the ministry of micro, small and medium enterprises, has sought cancellation of the trademark given to the company by Belgium-headquartered Office for Harmonization in Internal Markets.

This is the latest instance of infringement of intellectual property rights but the government is in for a tough task since 'khaddar' and 'khadi' are common across the Indian subcontinent — from Bangladesh to Pakistan. According to a report, in India there are around 90 trademarks which have been registered by several entities which includes brands and labels such as 'Khadi', 'Khadi Gramudyog' and 'Khadi Bharat'.

The international trademark system is governed by two treaties: the Madrid Agreement Concerning the International Registration of Marks (1891) and the Madrid Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks (1989).