A trademark license facilitates the transfer of a trademark (recognized phrase, word, design, or symbol) from the original owner to another. The original owner of a trademark is called the assignor, while the person who becomes the new owner is called the assignee.
It is possible to transfer a business without the goodwill of the business involved. The trademark and what it represents are both given up when you transfer the rights with goodwill. Alternatively, in a transfer without goodwill (such as a franchise), the trademark owner retains control over the goodwill while allowing the other party to use it.
A registered trademark transfer or assignment is recorded in the Register of Trademarks if it is a registered trademark.
The types of trademark assignments
Be sure we understand the type of trademark assignment before we proceed:
- The exchange of proprietary rights and brand value is promoted with goodwill. It may be possible for the person who takes a trademark to increase sales by capitalizing on the brand’s reputation.
- The assignee cannot utilize the brand value in the absence of goodwill transfer.
There are many benefits to trademark assignment
In order to transfer a trademark, an assignment deed is required. Here are its advantages:
It is essential to have an assignment deed to prove your rights in case of a dispute.
Branding is a powerful tool
Building a brand from scratch is challenging and takes a lot of time and skill. Consequently, some people find it difficult. By contrast, a trademark assignment allows you to use a mark around which a brand and degree of trust have already been established.
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In order for the trademark assignment agreement to be valid, both parties must sign it. Whenever a dispute arises between the two parties, these assignments can serve as valid evidence that can be used to defend the case in court if a dispute arises between them. In addition to being published in the trademark journal, the assigned trademark is also published in the trademark registry. In the event of a dispute, the Registrar examines all clauses involved.
The market value of a company
It is impossible to overestimate the value of a trademark. In addition, it shows off the uniqueness of the brand and creates an instant connection between the brand and its audience. In addition, if someone purchases a trademark that is already recognized, they will also be allowed to use the name of the brand.
The assignment of trademarks
- The assignee must follow the prescribed procedures when transferring a trademark
- As well as the assignee, the assignor must issue the Form TM-P to each other
- Before the assignee can be considered a subsequent proprietor
- In order to become an owner of the trademark, the owner must file an application with the registrar of trademarks six months before taking ownership of the trademark
- It is possible to fill out the form later, however, the fees must be paid on time
- An official copy of the application as well as the advertisement for publication must be sent to the Registrar’s office
- Registrar will assign the trademark to assignee as owner of the trademark