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Trademark Assignment

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Assignment of Trademark Rights

Assignment of Trademark Rights means the transfer of rights from one owner to another. Trademark licensing is for the ownership rejoice for a particular logo and as such. Just like how a physical property is transferred from one person to another in terms of the will, the same can be done to the trademark registration too. Trademark assignment can be of two types- assignment of trademark without goodwill and assignment of trademark with goodwill.

The trademark represents the Brand and hence it holds value for the business. It is a unique thing pertaining to word, slogan, photograph, logo, graphic, color combination, sound, or even smell. In simple words it is the change in ownership in terms of the rights for the above-mentioned things.

Trademark assignment is done with the agreement called as trademark assignment agreement. Assignment of unregistered trademark is done with the form TM M and assignment of a registered trademark with TM P form. Trademark transfer can be done with the fees prescribed as per the trademark rules, 2017 and is subject to approval of the trademark registry.

Benefits of Trademark Assignment

Brand value: The trademark assignment enables the trademark proprietor to encash the value of his/her brand.
Rights assignment: The assignee obtains the rights of an already established brand due to trademark assignment.
Business Expansion: The trademark assignment supports the assignor and the assignee to expand their respective businesses.
Legal rights: The trademark assignment agreement enables the assignor and the assignee to establish their legal rights in case of any dispute.

Documentation for transferring the trademark

Power of attorney

Assignment Deed

Self attested KYC of proprietor

Trademark Assignment Process

Features of trademark transfer

All the rights regarding the previous owner of the trademark would not be valid.
The new owner would have the rights to market and boast about the trademark rights he/she has been entitled with.
Provides a way where some rights can be changed regarding the original owner.
The assignment deed must be prepared which contains all the essential information regarding whom the initial owner is which should match the proof.
The trademark would be region based hence the rules might vary from different ROC and the state government hence it is must mention the place in regard to the registration.
The owner must sign along with the date of validity of the deed where the starting date for the new ownership must be mentioned clearly.
The deed would be only between the assignee and the initial owner and no one else can be part of the deed.
The terms of goodwill must be mentioned out clearly.
It can be done for permanent period or a limited amount of time.

Unique Features of transferring trademark

Types of Trademark Assignment
Complete assignment of trademarks: In terms of complete assignment of the trademark, all the Trademark Registration rights including the royalty, further transfers for the following would be enjoyed by the new owner of the trademark and the previous owner of the trademark would have nothing to do with the rights anymore. This scenario would happen if the company is sold out to another company, the previous company owner would have no rights to claim once the assignment is done.
Partial assignment of trademarks: If the Partial Assignment is made, then the complete rights held by the company would not be transferred to the new owner. The rights are only held for the things that are assigned and rest of the rights are enjoyed by the previous owner only. This scenario would be valid if there are three trademarked categories and only the one is transferred the rest of the 2 are still enjoyed by the original owner.
Assignment of trademark with goodwill: With the assignment of trademark with goodwill, the actual rights to use the trademark for the same line of products is transferred to the new owner. This means that the same amount of brand reach would be there as it’s the same trademark reach. For a product A the rights along with the usage is transferred for the new company which can run on the same basis as the old one.
Assignment of trademark without goodwill When the assignment is made without goodwill for the trademark, then only the rights are transferred to the new owner who has been recently entitled. The current rights holder cannot use it in the same product line up. The trademark only can be used for a different product and cannot be the direct competitor as the rights are shared by both the companies via the deed.

FAQ

Frequently Asked Questions

Assignment of trademark means the transfer of rights from one owner to the another. The trademark licensing is for the ownership rejoice for a particular logo and as such. Just like how a physical property is transferred from one person to another in terms of the will, the same can be done to the trademark registration too.

Complete assignment of trademarks Partial assignment of trademarks Assignment with Goodwill Assignment without Goodwill

It is very important to mention in the assignment deed whether the assignment is along the goodwill or not.

In complete assignment, all the rights vested in a trademark including the right for further assignment are granted; whereas in partial assignment, there are certain restrictions on the transfer of ownership.

Yes, a trademark transfer/ assignment can be revoked under certain circumstances, such as non-compliance with the terms of the assignment agreement or if it is found to be fraudulent. Revocation of an assigned trademark requires legal proceedings and must be done in accordance with the law.

The timeline for completing a trademark transfer in India can vary depending on various factors, including the efficiency of the Trademark Registry and the complexity of the assignment. Generally, it takes around 6-12 months to complete the entire process, from drafting the agreement to the registration of the assignment.

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Trademark Assignment

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Assignment of Trademark Rights

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Benefits of Trademark Assignment