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(1) Within two months of the receipt of a notice of opposition filed in accordance with regulation 38, the applicant may file a counter-statement on Form TM 8 setting out the grounds on which he relies as supporting his application and the facts, if any, alleged in the notice of opposition which he admits, and shall at the same time send a copy of the counter-statement to the opponent.

(2) If no counter-statement is filed in accordance with subregulation (1), the application shall be deemed abandoned.