assignment and licensing of trademarks

Differences Between Trademark Assignment And Trademark Licensing

What is trademark assignment, what is trademark license, benefit of trademark assignment and trademark license.

Trademark Assignment:

Each trademark assignment is recorded in registry records and serves as evidence of trademark ownership.
It is faster than registering a new brand name.
Both parties benefit because the assignee gets a fair price for the brand name while it is known in the market, and the assignee gets the benefit of an already established brand.

Trademark License:

It helps in expanding the reach of the brand.
It has the potential to improve business life and performance.
Because of licensing, this mark has become more popular and well known.
The workload of the company is decreasing.

What is the difference between trademark assignment and trademark licensing?

A trademark assignment is a transfer of ownership of a trademark registration.
While in licensing, the original owner retains ownership and proprietary rights to the trademark, but only a limited number of rights to use the brand are granted to a third party.
Assignment agreement must be in writing. The license need not be in writing.
The assignment may be in whole or in part; A license gives you rights for a specific period of time.
Assignments are not time-sensitive; Ownership has been transferred. The license is valid only temporarily.

A key difference between trademark assignment and trademark licensing is that the assignment of a registered trademark is a change in ownership. Trademark licensing, on the other hand, is the transfer of certain rights (in a limited way) to a registered trademark while retaining ownership of the trademark. First let’s go, “What are trademark assignments and trademark licenses?” Let’s take a look at the benefits of trademark licensing and trademark assignment, and then move on to the differences.

According to the Trade Marks Act, 1999, a person entered in the Trademark Register as the owner of a trademark has the power to assign the trademark and to give effective receipt for any consideration for such assignment. Assignment is the complete transfer of ownership from the trademark owner to a third party. Trademark assignment is classified into two types:

Assignment without Good Faith — The assignor restricts the assignee from using the assigned trademark with the condition that the assignee may not use the assigned trademark regarding goods and services that the assignee already uses.
Assignment in good faith — The assignor transfers the rights and value of the trademark associated with the product to the assignor.

A trademark is a valuable business asset that protects your brand. Licensing your trademark can help your business strategy by expanding your brand’s reach into new markets and territories. In trademark licensing, the owner of a particular trademark can grant a third party a limited right to use the trademark in exchange for royalties while retaining ownership.

A trademark assignment is a transfer of ownership of a trademark registration. While in licensing, the original owner retains ownership and proprietary rights to the trademark, but only a limited number of rights to use the brand are granted to a third party.
The assignment maybe in whole or in part; A license gives you rights for a specific period of time.

Safeguard your brand effortlessly with our expert guidance. Fast-track the process and secure your intellectual property with ease. Explore hassle-free trademark registration online services now!”

Trademark assignment and licensing are both important terms that require careful planning. Brand creation and use are associated with trademark licensing and trademark assignment. All these are available to the owner and are effective management practices.

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Trademark Assignment

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A Trademark Assignment is a document used when one person owns a registered trademark (like a brand name or logo ) and wishes to transfer the ownership of that trademark to another person. Written Trademark Assignments are important, as it's best for both parties to have a memorialized record of the assignment.

Trademark Assignments allow the easy transfer of the mark. They contain all the information needed to record the assignment with the United States Patent Office (USPTO) . Recordation with the USPTO is necessary for all registered trademarks that are being transferred, and it is a good way to ensure everything flows smoothly with the assignment.

This is different than a Licensing Agreement , as here, the entirety of the mark is being transferred to a new party. In a Licensing Agreement, the mark still belongs to the original owner, but the other party pays royalties for permission to use it.

This is also slightly different than an Intellectual Property Release . Although that form could be used for a trademark, generally it is used for copyrighted material, like works of art or pieces of music. In that case, payment is not made and instead, the copyrighted works are simply "released," or given, to another party.

This document can also be distinguished from an Intellectual Property Permission Letter , as there, one party is writing to request permission to use the intellectual property of another. A Licensing Agreement or Intellectual Property Release or even Trademark Assignment could come after the Intellectual Property Permission Letter, but that is not a formal legal document, and is instead, a template for a letter to be used to have the initial conversation about intellectual property use.

How to use this document

This document can be used to transfer the ownership of an existing trademark or when an individual would like an existing trademark transferred to them, as long as the owner agrees. It should be used when both parties understand that the trademark will be completely assigned (in other words, this is not a license, as noted above, and no royalties will be due after the assignment) and wish to create a record of their agreement.

This document will allow the parties to fill in details of the mark to be transferred, as well as ensure that everything needed for recordation with the USPTO is present. Either party - either the person assigning the trademark or the person receiving the trademark - can fill out this form.

Once the form is complete, the parties can undertake the following steps:

1) Sign and execute the form in front of a notary (both parties)

2) Have the notarization completed

3) Record the Trademark Assignment with the United States Patent and Trademark Office

Applicable law

Trademark Assignments are related to the trademark law of the United States, which is covered by a federal statute called the Lanham Act. The section of the Lanham Act specifically referring to assignments is 15 U.S.C. § 1060(a).

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A guide to help you: How to Register A Trademark

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ASSIGNMENT AND LICENSING (SEC-48 TO 53)

Published by admin on september 1, 2023 september 1, 2023.

This article is written by Smriti Jha of Lloyd Law College, Greater Noida, an intern under Legal Vidhiya.

It is essential to comprehend how trademarks are assigned and licensed in India. For both the licensor and licensee, the marketing and strategic management processes would undoubtedly open up a wide range of expanding vistas in this area. It all depends on how a brand is created and used, which together play a role in boosting marketing efforts across different industries.

In order to eliminate unfair brand rivalry and take into account contemporary business practices, the Trademarks Act of 1999 was revised. The Act is designed to safeguard the rights of a proprietor who invests time, money, and effort into building up the reputation of his or her trademark in the marketplace.

According to the Act, a registered owner may assign or grant a license for the use of his trademark. The goodwill of the participating firm may or may not be employed in the assignment and licensing. To assign or license a trademark, no registration is required.

Introduction

The Trademarks Act of 1999 is meant to defend the rights of a proprietor who invests time, effort, and money in building his trademark’s reputation in the market. The Act also seeks to prevent consumers from being deceived into purchasing a low-quality product simply because it carries the same mark as the proprietor’s or an authorized user’s mark, or a mark that is confusingly similar to the proprietor’s mark.

In compliance with the Act, a registered owner may assign or license his trademark use. The associated company’s goodwill may or may not be employed in the assignment and licensing. A trademark does not have to be registered in order to be assigned or licensed.

Trademark Assignment

The following is the definition of trademark assignment: – A trademark assignment is the transfer of the owner’s right in a trademark to another person. The transferring party is referred to as the assignor, and the receiving party is referred to as the assignee. The Trade Marks Act of 1999 defines “assignment” as a written assignment made by the parties engaged in Section 2(b).

Assignment is the process of transferring ownership rights to another individual.

Who Has the Authority to Assign a Trademark?

Section 37 of the Trademark Act of 1999 defines “trademark assignment.” A trademark assignment, according to the definition, is the transfer of ownership of a trademark and a brand mark. Section 37 of the Trademarks Act of 1999 states that the person registered as the trademark’s proprietor in the register of trademarks has the ability to assign a trademark and receive compensation for doing so. As a result, the owner of a trademark may transfer ownership to another person.

Table of Contents

Documents Required for Assignment of Trademark

The trademark registrar must receive the following paperwork in addition to the form TM-P: –

Agreement for a trademark assignment;
Certificate for a trademark;
The assignor’s NOC; and
Documentation proving the assignor’s and assignee’s identities. [1]

Trademark Licensing

Trademark licensing is merely the license granted by the trademark owner to a third party. A Royalty is paid in exchange for such a license. As an example: – When a brand owner authorizes and permits a third party to use his or her brand/mark in the course of trade for products or services.

Who has the authority to give a trademark license?

The trademark license can only be granted by the owner or holder of the registered trademark. It is important to note that under Indian law, both registered and unregistered property can be transferred. An assignment or a license can be used to transfer a trademark.

to register the trademark license : –

The agreement must be in writing;
The trademark owner and the intended user should apply for registration (section 49) with the Trademark Registrar jointly;
The form to use for the application is TM-U;
An affidavit signed by the owner of the trademark and authenticated by him or her, detailing the license’s terms and specifying the following: –
Relationship between the parties
Duration of the use
Goods/services for which it is applicable
The government fee for Each mark will be 4500. [2]

Difference between trademark licensing and trademark assignment

A registered trademark can change owners through a trademark assignment. Whereas, trademark licensing is the transfer of certain rights (In a restricted manner) of a registered trademark while retaining the ownership over the trademark. [3]

Registered users

(1) A person other than the registered proprietor of a trademark may be registered as a registered user thereof in respect of any or all of the products or services for which the trademark is registered, subject to the terms of section 49.

(2) For the purposes of section 47 or any other purpose for which such use is material under this Act or any other legislation, the authorized use of a trade mark shall be deemed to be used by the proprietor thereof, and shall not be deemed to be used by a person other than the proprietor.

Registration of registered users

As a registered user, you must first register.

(1) When it is proposed that a person be registered as a registered user of a trademark, the registered proprietor and the proposed registered user must jointly apply to the Registrar in writing in the specified way, and each such application must be supported by—

(a) the written agreement, or a legally certified copy thereof, between the registered proprietor and the proposed registered user regarding the permissible use of the trademark; and

(b) an affidavit produced by the registered proprietor or by someone entitled to act on his behalf to the satisfaction of the Registrar,—

( i ) giving particulars of the existing or proposed relationship between the registered proprietor and the proposed registered user, including particulars demonstrating the degree of control by the proprietor over the permitted use that their relationship will confer, and whether it is a term of their relationship that the proposed registered user shall be the sole registered user or that there shall be any other restriction as to persons for whose registration as registered users registration is sought.

(ii) specifying the goods or services for which registration is sought;

(iii) specifying any terms or limits proposed with regard to the features of the goods or services, the mode or place of permissible use, or any other matter;

(iv) specifying whether the permissible use is for a limited time or without a time limit, and if for a limited time, the duration thereof; and

2) When the conditions of sub-section (1) are met, the Registrar shall register the proposed registered user for the goods or services with which he is satisfied.

(3) The Registrar shall notify other registered users of the trademark, if any, of the registration of a person as a registered user in the required way.

(4) If asked by the applicant, the Registrar shall take steps to ensure that information provided for the purposes of an application under this section (other than facts put in the register) is not disclosed to competitors in trade.

Power of registrar for variation or cancellation of registration as a registered user

(1) A person’s registration as a registered user is made without regard to the provisions of Section 57.

(a) may be modified by the Registrar with regard to the goods or services for which it is effective upon the application in writing made by the registered proprietor of the trademark in the required way;

(b) can be revoked by the Registrar upon written request made by the registered proprietor, registered user, or any other registered user of the trademark in the manner provided;

(c) may be revoked by the Registrar upon the application in writing made by any person in the specified way on any of the grounds listed below, namely:–

(i) that the registered user has used the trademark in a manner that causes or is likely to cause confusion or deception or otherwise violates the agreement under clause (a) of sub-section (1) of section 49;

(ii) that the registered user or the proprietor misrepresented or omitted certain information relevant to the registration application that, if accurately represented or disclosed, would not have supported the registered user’s registration;

(iii) that after the date of registration, circumstances have changed in a way that would not have justified the registered user’s registration at the time of the application for cancellation;

(iv) that the registration shouldn’t have been made considering the applicant’s rights derived from a contract whose fulfillment he is interested in;

(d) may be revoked by the Registrar at any time, either on his own initiative or in response to a written request made in the prescribed manner by any person, on the grounds that any provision relating to the quality of the goods or services for which the trade mark is to be used in the registration agreement between the registered proprietor and the registered user is either not being enforced or is not being complied with;

(e) In regards to any goods or services for which the trademark is no longer registered, the Registrar may cancel the registration.

(2) For each application made pursuant to this section, the Registrar shall give notice to the registered proprietor and each registered user of the trademark who is not the applicant in the manner specified by this section.

(3) If necessary, the following steps may be taken to cancel a registration:

With the caveat that the registered proprietor must have a reasonable opportunity to be heard before registration can be cancelled.

Section 51 of the Trade Marks Act 1999

Registration authority to request information on agreements pertaining to registered users

The Registrar has the authority to request information about agreements pertaining to registered users.

(1) The Registrar may, at any time while the registered user’s registration is active, demand the registered proprietor to attest to him in writing within one month that the agreement filed pursuant to clause

Section 49’s sub-section (1), clause (a), is still in effect.

(2) The registered user ceases to be the registered user on the day immediately following the expiration of the specified time, and the Registrar shall notify you of this. This occurs if the registered proprietor fails to provide the confirmation within one month as required under subsection (1).

Right of registered user to file a lawsuit against infringement under Section 52 of the Trade Marks Act of 1999

(1) Subject to any existing agreement between the parties, a registered user may bring an infringement lawsuit in his or her own name and name the registered proprietor as a defendant, with the registered user’s rights and obligations in the case running concurrently with the registered proprietor’s.

(2) Irrespective of any other law, a registered proprietor who has been added as a defendant in this way is not responsible for any costs until he presents an appearance and participates in the proceedings.

Section 53 of the Trade Marks Act 1999 :

No right of the permitted user to take proceeding against infringement

The individual mentioned in subclause (ii) of clause (r) of section 2’s subsection (1) is not entitled to bring any legal action for any infringement.

Benefits Of Assignment Of A Trademark

The trademark owner can profit from the value of their brand through trademark assignment.
The trademark assignment provides the assignee with the right to an established and well-known brand.
The transfer of a trademark can help both the assignor and the assignee expand their businesses.
Both the assignor and the assignee can clearly define their legal rights and obligations through a trademark assignment agreement. [4]

Benefits of Trademark Licensing

Financial Benefit : Both parties can avail financial benefits as the Trademark is extensively exploited for profit & royalty is paid to the owner. The Licensor, who couldn’t exploit their Trademark, say, due to deficiency of visibility or resources, can now make the use of Licensee’s resources by permitting them the license & make more profits. The Licensee also gets their share in the profits.
Expand Trademark’s Popularity : As the Trademark reaches a huge number of customers, it automatically becomes popular. This promotes more sales, which boosts revenue, and promotes additional trademark licensing.
Help in Expanding Business : The Trademark owner’s business expands, and its outreach spreads to various territories. The business no longer detains itself to a specific area; rather, the Licensee can use their distributor skills for the expansion of the business.
Brand Recognition : Trademark as a brand becomes a well-known one in territories it was previously unknown. The Licensee is allowed to widely advertise using their resources.
Reduce or Distribute Workload : The Licensee, in a way, becomes the Licensor’s partner. The workload of the Licensor is reduced & he or she doesn’t need to worry regarding the quality of products & services as the Licensee is equally accountable for maintaining the products’ quality, he or she creates using the Trademark. [5]

Two key ideas in trademark law are assignment and licensing. The Licensor and Licensee must collaborate to specify the rights and obligations in an agreement before assigning or granting a license for a trademark.

When a trademark is registered, it helps to generate an intangible asset and grants the owner the sole right to sell, franchise, assign, and commercially license innovation.

https://legalpaathshala.com/assignment-and-licensing-of-trademarks/ Last seen on 28/08/2023
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[1] https://legalpaathshala.com/assignment-and-licensing-of-trademarks/ Last seen on 28/08/2023

[2] https://legalpaathshala.com/assignment-and-licensing-of-trademarks Last seen on 29/08/2023

[3] https://www.legalwiz.in/blog Last seen on 29/08/2023

[4] https://ksandk.com/intellectual-property/trademark-assignment Last seen on 30/08/2023

[5] https://swaritadvisors.com/trademark-licensing Last seen on 30/08/20203

Intellectual Property Rights

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Trade mark assignment and licensing

Published by a lexisnexis ip expert.

Trade marks can be exploited in a number of ways. They might be directly exploited by a trade mark owner (ie by self-use), or they could be used to generate income by transferring rights in the mark to other parties by various methods—including assignment , licensing and by using them as security to raise funds . This Practice Note deals with the assignment and licensing of trade marks.

For more information about managing a trade mark portfolio and for practical tips on drafting and negotiating a trade mark licence, see Practice Notes: Managing a trade mark portfolio and Drafting a trade mark licence—a practical guide.

The UK Intellectual Property Office (IPO) and the EU Intellectual Property Office (EUIPO) have also (respectively) issued the following guidance: License, mortgage, transfer, merge and market your trade mark and Managing trade marks.

For more information about taking security over IP rights, see Practice Notes: Taking security over intellectual property rights and Taking security over intellectual property—practical points.

As of IP completion day (11 pm GMT on 31 December 2020), Regulation (EU) 2017/1001,

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Related legal acts:

Competition Act 1998 (1998 c 41)
Copyright, Designs and Patents Act 1988 (1988 c 48)
European Union (Withdrawal) Act 2018 (2018 c 16)
Trade Marks Act 1994 (1994 c 26)

Key definition:

Assignment definition, what does assignment mean.

An assignment is 'an immediate transfer of an existing proprietary right, vested or contingent from one party to another'. Assignments can occur by consent or by operation of law.

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What is the difference between trademark licensing and trademark assignment?

Trademark Assignment is a change in the ownership of a registered trademark. Whereas, trademark licensing is transfer of certain rights (In a restricted manner) of a registered trademark while retaining the ownership over the trademark.

Let us have a detailed look at what these two terminologies mean and how they are different from each other.

Also Read: Understanding Trademark & its Registration Process in India

Trademark licensing

Trademarks are important business assets that offer protection to your brand. Licensing your trademark can benefit your business strategy by expanding the reach of your brand to new markets and territories. In licensing of trademark, owner of a particular trademark can give the right to use the trademark to a third party in a restricted manner and in return for a royalty, while retaining the ownership with himself/herself.

Benefits of trademark licensing

It helps in expanding the brand reach of the said mark.
It can have a positive impact on business life and operations.
Through licensing, the mark tends to become more popular and well-known.
The workload of the company reduces

How to register for trademark licensing?

Have a License Agreement in writing;
Apply jointly with the intended Licensee for License registration to the Registrar of trademarks (Section-49) in form TM-U ;
Submit an Affidavit affirmed by the owner mentioning the following: the details of the License, the relationship between the parties, the period of use, the applicable good/services;
Pay the government fee of Rs 4500 for each trademark to be licensed under each class;

Application for registration is required to be made within 6 months from the date of effective date of the Agreement signed between the parties.

Trademark Assignment

As per the Trade Mark Act, 1999, the person entered in the register of trademark, as the proprietor of a trademark, shall have the power to assign a trademark and to give an effectual receipt of for any consideration for such Assignment. Assignment is complete transfer of ownership by the owner of the trademark to a third party.

There are two types of trademark assignments:

1. Assignment without goodwill – the assignor restricts the assignee with the condition that the assignee cannot use the trademark assigned with the goods and services already in use by the assignor.

For example, the brand “KL” relating to his stationery product sells his brand to X. He will not use the mark “KL” concerning stationery products but can use this brand for any other products being manufactured.

2. Assignment with goodwill – the assignor assigns the rights and value of the trademark associated with the product is also transferred to the assignee.

For example, the brand “KL” relating to his stationery products sells his brand to X. He can use the brand concerning stationery products or any other products he wants to manufacture.

Benefits of Trademark Assignment

Every Assignment of a trademark is entered in the registry records and acts as a proof of ownership of the trademark.
It takes less time than registering a new brand name.
Both parties are advantageous as the assignor gets a reasonable amount for the brand name. The assignee will enjoy the already established brand while known in the market.

How to register for Trademark Assignment

The prospective assignee must apply for the registration of Assignment before the Trademark Registration Office.
Once the Registrar is satisfied, he will enter the details of the assignee as the owner of the trademark of goods and services assigned to him.
If the parties dispute the validity of the transfer, the Registrar may refuse to register the transfer until the competent authority determines the parties’ rights.
The trademark registrar will process the trademark assignment registration application within three months from the date of receipt of the application.
Where the trademark registry is not satisfied with the integrity of any statement or any documents provided by the applicant it may request the applicant to provide additional proof.
When the Registrar is pleased with the documentation, it will officially transfer the trademark from the original to the new owner.

When the Registrar allows the registration, He will enter the following data into the registry.

Also Read: A simplified guide on process of trademark search

Name and address of the assignee;
Date of Assignment;
Description of the right to be transferred (where Trademark Rights are involved);
Basis of the Assignment;
Date of registration.

Trademark Assignment vs. Trademark Licensing

Assignment of a trademark is a transfer in the ownership of the trademark registration . Whereas in licensing, the ownership and proprietary rights of the trademark continue to remain with the original owner, but only a few restricted rights to use the brand are given to the third party.
The assignment deed must be compulsorily in writing. Licensing isn’t required to be in writing.
An assignment is entirely or partly; a license gives the rights for a particular period of your time.
An assignment isn’t time-sensitive; the ownership is gone. Licensing is barely for a limited period of your time.

Both Assignment and Licensing of trademarks are significant issues, and proper strategizing may open aspects of opportunities for all, a licensor, a licensee, an assignor, and an assignee. Trademark licensing and Trademark Assignment involves developing a brand and its use. All these exist in the hands of the proprietor and are effective methods to manage the same.

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Akansha is a 3rd-year B.A. L.L.B (H) student, pursuing her summer internship at LegalWiz.in with an aim to make an impactful career in the filed of business compliance and corporate law. The subject of law fascinates her extensively.

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Differences Between Trademark Assignment & Trademark Licensing

Introduction

A key difference between trademark assignment and trademark licensing is that the assignment of a registered trademark is a change in ownership. Trademark licensing, on the other hand, is the transfer of certain rights (in a limited way) to a registered trademark while retaining ownership of the trademark. First let's go, "What are trademark assignments and trademark licenses?" Let's take a look at the benefits of trademark licensing and trademark assignment, and then move on to the differences.

What is Trademark Assignment?

Assignment without Good Faith: The assignor restricts the assignee from using the assigned trademark with the condition that the assignee may not use the assigned trademark regarding goods and services that the assignee already uses.
Assignment in good Faith: The assignor transfers the rights and value of the trademark associated with the product to the assignor.

Differences Between Trademark Assignment and Trademark Licensing

What is Trademark License?

A trademark is a valuable business asset that protects your brand. Licensing your trademark can help your business strategy by expanding your brand's reach into new markets and territories. In trademark licensing, the owner of a particular trademark can grant a third party a limited right to use the trademark in exchange for royalties while retaining ownership.

Benefit of Trademark Assignment and Trademark License

Trademark assignment.

Each trademark assignment is recorded in registry records and serves as evidence of trademark ownership.
It is faster than registering a new brand name.
Both parties benefit because the assignee gets a fair price for the brand name while it is known in the market, and the assignee gets the benefit of an already established brand.

Trademark License

It helps in expanding the reach of the brand.
It has the potential to improve business life and performance.
Because of licensing, this mark has become more popular and well known.
The workload of the company is decreasing.

What is the difference between trademark assignment and trademark licensing?

A trademark assignment is a transfer of ownership of a trademark registration. While in licensing, the original owner retains ownership and proprietary rights to the trademark, but only a limited number of rights to use the brand are granted to a third party.
Assignment agreement must be in writing. The license need not be in writing.
The assignment maybe in whole or in part; A license gives you rights for a specific period of time.
Assignments are not time-sensitive; Ownership has been transferred. The license is valid only temporarily.

Safeguard your brand effortlessly with our expert guidance. Fast-track the process and secure your intellectual property with ease. Explore hassle-free trademark registration online services now!"

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Ishita Ramani (Director - Operations) Category Corporate Law Report

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Trademark Assignment: All You Need to Know

This article on ‘Assignment of Trademarks: All you need to know’ was written by Shashanki Kaushik , an intern at Legal Upanishad.

Introduction

This article provides a comprehensive overview of the assignment of trademarks in India, focusing on the legal framework, relevant legislation, landmark judgements, and practical considerations. Understanding the nuances of trademark assignment is vital for businesses seeking to protect their intellectual property rights. In India, this process is governed by various laws, including the Trade Marks Act of 1999 and the Trade Marks Rules of 2017. This article explores the intricacies of trademark assignment, touching upon key aspects, legal provisions, and notable case law.

Assignment of Trademarks : Concept and Laws

Trade Marks Act, 1999, Section 2(1)(b): Definition of Assignment: The Act defines ‘assignment’ as the transfer of ownership, either with or without the goodwill of the business.

Section 37: Requirements for Assignment: This section outlines the essential requirements for a valid trademark assignment, including the need for the assignment to be in writing and signed by both parties.

Trade Marks Rules, 2017, Rule 68: Application for Assignment: Rule 68 specifies the procedure for filing an application for the assignment of trademarks, along with the prescribed form and fees.

Types of Trademark Assignment

Complete Assignment- A complete assignment involves the transfer of both the trademark and the associated goodwill.
Partial Assignment- Partial assignment entails the transfer of the trademark without the goodwill of the business.
Assignment with Goodwill- Assignments that include goodwill are more common and ensure the new owner can benefit from the established reputation and customer base.
Assignment without Goodwill- Assigning a trademark without goodwill is less common and may occur when the assignor intends to retain the business’s reputation.

Legal Procedures for Trademark Assignment

Application to Registrar: The assignor and assignee must file a joint application with the Registrar of Trademarks for the assignment’s approval.
Advertisement and Opposition: After acceptance, the Registrar will advertise the assignment application. Interested parties have the opportunity to oppose the assignment within the stipulated period.
Issuance of Certificate: Upon successful completion of the assignment process, the Registrar issues a certificate, signifying the new owner’s rights over the trademark.

Landmark Judgments

Ravi Kamal Bali v. Kala Tech and Entertainment (P) Ltd.

This case reaffirmed that an assignment without goodwill does not affect the validity of the assignment.

Indian Performing Right Society Ltd. v. Dalia

In this judgement, it was held that the assignee could enforce trademark rights against third parties, even without registering the assignment.

Law Assignments Help Law Dissertation Help PhD Assistance Moot Court Memorial Help Publications in: UGC Care Journals ISBN Scorpus Journals Free Law Notes

Practical Considerations

Due Diligence : Both parties should conduct thorough due diligence before entering into an assignment agreement, ensuring the trademark’s validity and reputation.
Clear Agreement : The assignment agreement must be clear and comprehensive, specifying the terms, conditions, and considerations involved.
Record Keeping : Maintaining accurate records of the assignment is crucial for future reference and potential disputes.
Post-Assignment Compliance : The assignee must ensure compliance with ongoing trademark maintenance , including renewals and protection against infringement.

Tax Implications of Trademark Assignment

Trademark assignment can have significant tax implications for both parties involved. The consideration received or paid for the assignment may be subject to capital gains tax or other taxes, depending on the specific circumstances and applicable tax laws. It is crucial for both parties to seek professional tax advice to ensure compliance with tax regulations.

Licensing vs. Assignment

While trademark assignment involves the complete transfer of ownership, licensing allows the owner (licensor) to grant permission to another party (licensee) to use the trademark under specific terms and conditions. Licensing gives more control to the trademark owner and allows for greater flexibility in terms of use, territory, and duration. Assignment, on the other hand, transfers all rights and responsibilities to the assignee, including the duty to protect and enforce the trademark.

Franchising and Trademark Assignment

Franchising often involves the assignment of trademarks to franchisees. This allows franchisees to operate under a recognized brand, benefiting from the established reputation and marketing efforts of the franchisor. Franchise agreements typically include detailed provisions regarding trademark usage, quality control, and territorial rights. Careful consideration of trademark assignment is essential in the franchising context to maintain brand consistency and protect the trademark’s value.

International Enforcement of Trademark Assignment

Enforcing trademark assignments across international borders can be challenging due to varying legal systems and regulations. Businesses engaging in cross-border trademark assignments should consider international treaties such as the Madrid Protocol and the Paris Convention, which provide mechanisms for protecting trademarks in multiple countries. Additionally, legal counsel with expertise in international trademark law is essential to navigate the complexities of enforcing trademark assignments globally.

International Perspective

Paris Convention for the Protection of Industrial Property (1883): India, as a signatory to the Paris Convention, recognizes the principle of national treatment for foreign trademark owners, providing a basis for international trademark assignment.

TRIPS Agreement (1994): The Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, part of the World Trade Organization (WTO), sets minimum standards for the protection of trademarks and includes provisions related to trademark assignment.

International Trademark Assignment

Madrid Protocol : Under the Madrid Protocol, businesses can efficiently protect their trademarks in multiple countries by filing a single international application. India became a member of the Madrid Protocol in 2013, facilitating international trademark assignments for Indian businesses.

International Trademark Assignment Case Study: Coca-Cola : Coca-Cola’s global presence is a prime example of an effective international trademark assignment. Through careful planning and legal strategies, the company has maintained consistent branding worldwide.

Trademark assignment is a vital aspect of intellectual property management in India. It provides opportunities for businesses to monetize their assets or expand their market presence. However, navigating the legal framework, complying with procedures, and safeguarding interests require careful consideration. As demonstrated through relevant legislation and case law, understanding the intricacies of trademark assignment is indispensable for both assignors and assignees in India.

List of References

Mayashree Acharaya, ‘Assignment of Trademark’, CLear Tax, 22 February 2022, available at: https://cleartax.in/s/ass i gnment-of-trademark
‘Assignment and Transmission of Rights’, Selvam & Selvam, available at: https://selvams.com/kb/in/trademarks/assignment/
‘Trademark Assignment’, Corpbiz, available at: https://corpbiz.io/trademark-assignment

Legal Guide

Assignment & Licensing of Trademark in India

by Bhavya Choudhary · 4 min read

Imagine a situation where you want to buy the “Café Coffee Day”. You go and tell the owner of the “Café Coffee Day” that you are interested in buying the same. He reverts back, saying that he is ready to sell his brand. This is called an Assignment.

Now imagine a new situation where you want the franchise of “Café Coffee Day,” and you are ready to pay the royalty for the same. This is termed as Licensing of a trademark.

To summarize it, it can be said that in case of an assignment of a trademark, there is a change in the ownership of the registered brand, and in case of licensing of trademark, the ownership of the trademark continues to vest with the original owner, but few limited rights are given to the third party. Trademark registration is compulsory for the Assignment and licensing of trademarks.

Assignment of a Trademark

When the ownership of a trademark is transferred from one party to another either with or without goodwill, it is called an assignment of the trademark. Such Assignment must be recorded in the register of trademark if the trademark is registered. Trademark registration is necessary in such cases. The Assignment is different from licensing of trademark.

Trademark can be assigned or transferred to another in any of the following manners:

● Complete Assignment of the trademark to another entity

The owner of the trademark transfers all its rights with respect to a mark to another entity, including the right of transfer of the rights such as to further transfer, to earn royalties, etc.

● Assignment of the trademark to another entity but concerning only some of the goods or services

The transfer of ownership, which is limited only to specific products or services, is termed as a partial assignment.

● A ssignment of the trademark with goodwill

Where the rights and value of a trademark associated with the product are also transferred along with the main product, it can be said to be an assignment of the trademark with goodwill.

● Assignment of the trademark without goodwill

Where the owner of the trademark limits the right of the buyer and does not allow him to use the brand for the products that are being used by the original owner, it is said to be the Assignment of a trademark without goodwill. Therefore, it can be said that the goodwill of the product is not transferred to the buyer. It is also notable that in other countries like the United States, the Assignment of the trademark without goodwill is not allowed. However, in India, assignment of the trademark without goodwill is allowed.

In the case of the registered trademark, the trademark act of 1999 itself puts certain limits on the Assignment of trademark where there is a possibility of creating confusion in the minds of the general public. The restrictions are:

Assignment of a trademark that leads to the creation of exclusive rights in more than one person concerning certain goods and services or their description for the same
Assignment of the trademark that leads to different people using the trademark in various parts of the country at the same time.

Licensing of Trademark

The licensing of a trademark allows others to use the mark without transferring the ownership, and it can be done for all or some of the goods and services covered. It is to be noted that the Trademark act of 1999 does not use the term ‘License’ or ‘Licensing of Trademark’. It is mentioned as ‘Registered User.’

The licensing of trademark is beneficial to both parties. The Licensor gets the right to enjoy the benefit of the brand which he got after paying the royalty, while the licensee can develop the brand reputation and expand the market operation of the brand in licensing of the trademark.

In the case of Licensing of trademark, the Licensor is free to license the rights over the registered trademark in the manner he may like. The Licensor can limit the rights of the licensee in a trademark or brand in respect of certain products or services wherein the licensee can use the brand by following certain terms and conditions of the Licensor. This is the benefit of licensing of trademark.

Agreements for Transmission

By way of a properly executed Trademark assignment agreement, a trademark is generally assigned. The agreement is related to the transfer of a trademark from the person who is the owner to another person. Therefore, while drafting the agreement, the following must be kept in mind:

Due to obligations defined in the agreement, the right of the owner of the brand should not be affected adversely.
It should be mentioned and determined in the agreement whether the Assignment should be with or without the goodwill of the business.
The purpose of the transaction must be kept in mind while drafting the agreement.

Licensing of trademark is done by way of a license agreement. Licensing of the trademark may take place by way of a License Agreement. The trademark act of 1999 makes it clear that the registration of license agreement with the Trademark Registrar is voluntary and compulsory in respect of licensing of the trademark. However, it is better to get the agreement registered in case of licensing of trademark. It should also be kept in mind while drafting the license agreement that the rights and duties of the licensee and Licensor must be determined and defined. This must be done to protect the right of both parties. Registration of licensing of a trademark is also important to secure the brand and protect against any misuse of it. This is necessary in the case of licensing of trademark.

Conclusion

Assignment and Licensing of trademark are two important concepts. While assigning and Licensing of trademark, the Licensor and licensee must come together and define the rights and obligations in an agreement. It would be correct to take expert legal advice while preparing the agreement to protect oneself.

Trademark registration helps create an intangible asset, and the person gets the exclusive right for selling, franchising, assigning, and commercially contracting innovation. Talk to a Lawyer to understand the Trademark requirements and the Registration process.

Bhavya Choudhary

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IP Assignment and Licensing

IP rights have essentially transformed intangibles (knowledge, creativity) into valuable assets that you can put to strategic use in your business. You can do this by directly integrating the IP in the production or marketing of your products and services, thereby strengthening their competitiveness. With IP assignement and IP licensing, IP owners can also use your IP rights to create additional revenue streams by selling them out, giving others a permission to use them, and establishing joint ventures or other collaboration agreements with others who have complementary assets.

Expert tip: Assignment, license and franchising agreements are flexible documents that can be adapted to the needs of the parties. Nevertheless, most countries establish specific requirements for these agreements, e.g. written form, registration with a national IP office or other authority, etc. For more information, consult your IP office .

IP rights assignment

You can sell your IP asset to another person or legal entity.

When all the exclusive rights to a patented invention, registered trademark, design or copyrighted work are transferred by the owner to another person or legal entity, it is said that an assignment of such rights has taken place.

Assignment is the sale of an IP asset. It means that you transfer ownership of an IP asset to another person or legal entity.

IP for Business Guides

Learn more about the commercialization of patents, trademarks, industrial designs, copyright.

Read IP for Business Guides

IP licensing

You can authorize someone else to use your IP, while maintaining your ownership, by granting a license in exchange for something of value, such as a monetary lump sum, recurrent payments (royalties), or a combination of these.

Licensing provides you with the valuable opportunity to expand into new markets, add revenue streams through royalties, develop partnerships etc.

If you own a patent, know-how, or other IP assets, but cannot or do not want to be involved in all the commercialization activities (e.g. technology development, manufacturing, market expansion, etc.) you can benefit from the licensing of your IP assets by relying on the capacity, know-how, and management expertise of your partner.

Expert tip: Licensing can generally be sole, exclusive or non-exclusive, depending on whether the IP owner retains some rights, or on whether the IP rights can be licensed to one or multiple parties.

Technology licensing agreements

Trademark licensing agreements, copyright licensing agreements, franchising agreements, merchande licensing, joint venture agreements, find out more.

Learn more about Technology Transfer .

Assignment and Transmission of Trademarks in India

Table of Contents

According to the Trade Mark Act 1999

“Trademark means a mark capable of being represented graphically and which is capable of distinguishing the goods or services of one person from those of others and may include the shape of goods, their packaging and combination of colours.” Which in layperson language suggests that any sign-on product or services that create it totally different from the opposite or simple to differentiate one from the opposite may be a Trademark.

Assignment and Transmission of Trademark

Assignment and Transmission of Trademark is a process in which ownership of the trademark is passed from one person to another with full or partial rights depending on the terms and conditions of the owner of the trademark. Registered and Unregistered Trademarks are assigned and transmitted from one person to another with or without the goodwill of the business concerned.

Difference between the Assignment and Transmission of the Trademark

Generally, the term Assignment and Transmission are used interchangeably but Sec 2 of the Trademark Act clearly distinguishes between the Assignment and Transmission. In case of an assignment of a trademark, there is a change in the ownership of the registered brand and in case of Transmission, the right in the trademark continues to vest with the original owner but only a few restricted rights to use the brand/mark are given to the third party.

For example, X is the owner of the trademark “œ” and decided to assign his trademark to Y. It means that X will no longer have the ownership of the trademark and after proper assignment Y will be registered owner of the trademark and will have all the rights to it.

Whereas if X decided to do the Transmission of a Trademark it will mean that X is still the original owner of the trademark but he has just given restricted rights and liabilities to Y to use the trademark.

Types of Assignment and Transmission of Trademark

Complete assignment and transmission.

It means the transfer of all rights including rights to further transfer, rights to royalties, etc from one individual to another.

For example, A proprietor ‘X’ sells his all rights of the Trademark to Y another proprietor according to which Y have all the exclusive rights of the Trademark and he can use the trademark in any way as he deems fit, if he wants he can further transfer it, he can receive royalties for the usage of Trademark or set some guidelines for the usage of the trademark as they deem fit and there will be no need to take the approval of ‘X’.

Partial Assignment

It means the transfer of ownership specified or restricted to certain services or products.

For example: ‘X’ a proprietor have a Trademark (♛) which deals with men’s lifestyle products which include clothing to shoes assign and transfer his trademark (♛) to Z on a condition that they can use their trademark only in dealing with shoes and nothing else, the only X has the right to use the trademark on all the products. This kind of transfer is known as a partial transfer.

Assignment with goodwill

It means to transfer and assignment of the trademark with all the rights and values associated with the trademark from one person to another.

For example, X assign and transfer his trademark (♛) to Z with all the rights and values. By doing this Z has the full right to use the trademark for all men’s lifestyle products or for any other products that they manufacture in future.

The assignment without goodwill

It means the transfer of trademark by the owner in such a way it can be used for any other purpose except the original one.

For example: X proprietor with a trademark (♛) deals with men’s lifestyle products, assigns and transfers his trademark(♛) to Z on a condition that Z can use his trademark for any product that he wants except for men’s lifestyle products.

Conditions for assignment and transmission as given in section 42

Section 42 of the Trademark Act describes Conditions for Assignment and Transmission of a Trademark otherwise than in connection with the goodwill of a business. It states that assignment and transmission of the trademark otherwise than in connection with goodwill will not take effect until and unless assignee apply to the registrar concerning the directions for the advisement of the assignment and advertises it in such form and manner and within such period as the Registrar may direct but not later than 6 months of which the assignment is made or after an extended period of 3 months if registrar allows for it.

But it will not be considered as an assignment of trademark otherwise than in connection with the goodwill of the business if the trademark is assigned for some goods and services along with the goodwill of the business concerned for those goods and services.

And the assignment is done for those goods which are exported and those services which are used outside India with the assignment of goodwill

Restrictions on Assignment of Trademark

Trademark act also makes certain restrictions on the Assignment and Transmission of the Trademark where there is a possibility of creation of confusion among users or public.

Restriction on assignment or transmission where multiple exclusive rights would be created.
Restriction on assignment or Transmission where exclusive rights would be created in different parts of India.

Process of Assignment and Transmission of Trademark (Section 45)

Application to the Registrar of Trademark in Form TM-P

(with the original copy of duly certified documents)

Registrar will dispose of his decision within 3 months

a).Inform the applicant about the assignment or

b) Call to furnish proof if he has some doubts.

If approved, the registrar will make an entry in the Register with details,

(i) the name and address of the assignee;

(ii) the date of the assignment

(iii) where the assignment is in respect of any rights in the trademark, a description of the right assignment.

(iv) the basis under which the assignment is made; and

(v) the date on which the entry is made in the register 1 .

If there is any dispute going on between the parties regarding the validity of an assignment or transmission, the registrar may refuse to register the assignment or transmission until the right of the parties has been determined.

Assignment and Transmission of Registered Trademark (Section 38)

Section 38 of the Trademark Act describes the Transmission of Registered Trademark according to which “Notwithstanding anything in any other law to the contrary a registered trademark shall, subject to the provisions of this Chapter, be assignable and transmissible, whether with or without the goodwill of the business concerned and in respect either of all the goods or services in respect of which the trademark is registered or of some only of those goods or services”

Assignment and Transmission of Unregistered Trademark(Section 39)

Section 39 of the Trademark Act describes the Transmission of Unregistered Trademark according to which “An unregistered trademark may be assigned or transmitted with or without the goodwill of the business concerned.”

Benefits of Assignment and Transmission of Trademark

Expansion of business.

By assignment and transmission of the trademark from the owner to the assignee, the owner expands his business by using the same trademark in more than one place simultaneously. By giving the partial authority of the owner also has the power to give a trademark assignment to more than one person.

Benefits of the already established brand

Assignment and transmission of trademark help the assignee to use the already established trademark in the market to create their base. It also helps the assignee to save money and resources by not spending on marketing to create a brand.

Legal Proof

Assignment and Transmission of trademark also act as a legal proof in case disputes of any kind arise regarding the usage of Trademark because all the legal rights and liabilities were already mentioned in a form of a legal deed.

Monetary benefits

By Assignment and Transmission of Trademark, the owner of the trademark enjoys monetary benefits received by assignment and Transmission along with the increase in the value of the brand by operating with the same Trademark in more than one place.

Structural waterproofing and ORS v. Amit Gupta ORS [93 (2001) DLT 496]

It is stated that when disputes arise between parties for assignment and transmission of Trademark then the registrar can refuse to register the assignment and transmission until and unless the decision is taken by the competent court. In this case, the plaintiff claimed the ownership of the trademark only based on Memorandum of understanding created between them. The court in this case declined his request for an injunction on the defendant. It is also stated in the decision that the trademark cannot be claimed unsuitable merely because there is a change in the name of the registered proprietor.

Cinni foundation v. Raj Kumar Shah and sons[ 2009(41)PTC320(Del)]

It was found that the trademark CINNI was used by the owner. The deed of assignment has been created and duly signed between the parties and after a certain time, it is found that the trademark is not a registered trademark and so the defendant tries to claim the trademark in which court decided that according to the law, assignee acquire no title without registration of the assignment deed.

Assignment and Transmission of a Trademarks create ample opportunity for the owner as well as for assignee. It helps the new brand to get developed because of its usage from more than one place simultaneously. Developed brands used it as a tool to generate more revenue and business for themselves.

1.https://www.lexology.com/library/detail.aspx?g=4339efff-eba0-4339-a5f9-47f2d72ae7d1

2.https://www.lawyered.in/legal-disrupt/articles/assignment-trademarks-india/

3. https://www.bananaip.com/the-trade-mark-rules/chapter-5-assignment-and-transmission/

4.Trademark Act of 1999

5. economictimes.indiatimes.com

6. https://lawyog.com/assignment-and-transmission-of-trademark-in-india/

Sapna Chaudhary

Sapna Chaudhary has incredible writing and reading skills and you will never miss a flow in her writings. Her favourite leisure activity is IPR. For any clarifications, feedback, and advice, you can reach us at [email protected]

Assignment & Licensing Of Trademarks In India

Contributor.

Just as in the case of physical property such as land, every owner of a Brand or Trademark has the right to sell, license, transfer, etc. its respective brand or trademark in accordance with legal procedures. A brand or Trademark owner can transfer his rights with respect to his trademark either by way of assignment or by licensing. In India, The Trade Marks Act, 1999 deals with assignment as well licensing of trademarks.

To put it summarily, in case of an assignment of a trademark, there is a change in the ownership of the registered brand and in case of licensing, the right in the trade mark continues to vest with the original owner but only few restricted rights to use the brand/mark are given to the third party.

ASSIGNMENT OF A TRADEMARK

Assignment of a trademark occurs when the ownership of such mark as such, is transferred from one party to another whether along with or without the goodwill of the business. In case of a registered Trademark, such assignment is required to be recorded in the Register of trade marks.

A mark may be assigned or transferred to another entity in any of the following manners:

Complete Assignment to another entity- The owner transfers all its rights with respect to a mark to another entity, including the transfer of the rights such as right to further transfer, to earn royalties, etc. (E.g. X, the proprietor of a brand, sells his mark completely through an agreement to Y. After this X does not retain any rights with respect to the brand)
Assignment to another entity but with respect to only some of the goods/ services- The transfer of ownership is restricted to specific products or services only. (E.g. P, the proprietor of a brand used for jams and jellies and dairy products. P assigns the rights in the brand with respect to only dairy products to Q and retains the rights in the brand with respect to jams and jellies.) This is called partial assignment.
Assignment with goodwill- Such assignment is where the rights and value of a trademark as associated with the product is also transferred to another entity.(E.g. P, the proprietor of a brand "Shudh" relating to dairy products, sells his brand to Q such that Q will be able to use the brand "Shudh" with respect to dairy products as well as any other products it manufactures.)
Assignment without goodwill- Such assignment also referred to as gross assignment, is where the owner of the brand restricts the right of the buyer and does not allow him to use such brand for the products being used by the original owner. Thus, the goodwill attached to such brand with respect to the product already being sold under such brand, is not transferred to the buyer. (E.g. P, the proprietor of a brand "Shudh" relating to dairy products, sells his brand to Q such that Q will not be able to use the mark "Shudh" with respect to dairy products but can use this brand for any other products being manufactured by it. In such case the goodwill which is associated with brand "Shudh" for dairy products is not transferred to Q and Q will be required to create distinct goodwill of brand "Shudh" for any other product or service like Restaurant wherein Q proposes to use this brand.). In many jurisdictions like United States, assignment of mark without goodwill is not allowed at all. India on the other hand allows assignment without goodwill.

Further, in case of registered Trademarks, the Trade Mark Act 1999 also puts certain restrictions on the assignment of a registered trade mark wherein there exist possibilities of creating confusion in the mind of public/users. Such restrictions are:

Restriction on assignment that results in the creation of exclusive rights in more than one persons with respect to the same goods or services, or for same description of goods or services or such goods or services as associated with each other.
Restriction on assignment that results in different people using the trademark in different parts of the country simultaneously.

TRADEMARK LICENSING

The licensing of a mark is to allow others to use the mark without assigning the ownership and the same may be done for all or some of the goods and services covered. The Trademarks Act does not mention the term 'License', the concept under the Act is mentioned as that of a 'Registered User'.

Trademark licensing is advantageous to both the parties. While the licensor enjoys its rights to the mark by getting the royalties for its use, the licensee is able to expand its market operations by using the brand and developing its reputation.

In case of Licensing, the licensor is open to license the rights over the trademark in manner it may like. The Licensor can restrict the rights of the licensee in a trademark or brand with respect to the products or services wherein the licensee can use such brand, with respect to time for which it can use such mark, with respect to area within which it can use such mark etc.

AGREEMENTS FOR TRANSMISSION

A trade mark is generally assigned by way of a properly executed Trademark Assignment Agreement which pertains to the transfer of the mark from one person or entity who is the owner to another. It is to be ensured when drafting such agreement that:

the rights of the owner of the brand are not detrimentally affected due to the obligations contained.
the requirement and decision regarding whether the assignment should be with or without the goodwill of the business is explicitly mentioned and negotiated
the agreement should be drafted keeping in mind the purpose of the transaction in question

A mark is licensed by way of aLicense Agreement. As per the Trade Mark Act, 1999, contrary to the requirement in case of Assignment, the registration of license agreement with the Trademark Registrar of a mark is voluntary and not compulsory, but it is advisable. Further, like in an Assignment agreement, it is again very important that while drafting a License Agreement, the rights and duties of licensee are distinctively pre determined and defined. This is important not only to protect the rights of the Licensor in its own brand and to protect any misuse thereof, but also to secure licensee with his rights to use such brand.

TO SUM UP..

Assignment and Licensing of brands are considerable issues and proper strategizing may open vistas of opportunities for all, a licensor, a licensee, an assignor and an assignee. Both concepts involve a degree of planning for the future of the parties involved and the brand in question. The development of a brand, its propagation and its use, all lie in the hands of the proprietor of the brand and trademark and assignment and licensing are effective methods to manage the same.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Intellectual Property

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Trademark Assignment and Licensing

The owner of a brand or trademark has the ability to transfer his rights with regard to his trademark either via the process of assignment or through the process of licencing. The Trade Marks Act, 1999 of India addresses both the transfer and licencing of trademarks in its provisions.

Trademark Assignment

To put it succinctly, when a trademark is assigned to a new owner, there is a change in the ownership of the registered brand. On the other hand, when a trademark is licenced, the right in the trade mark continues to vest with the original owner, but the licenced party is only granted a limited number of restricted rights to use the brand or mark.

A trademark is said to have been assigned when the legal ownership of the mark itself is passed from one party to another, with or without the transfer of the goodwill associated with the company. In the event of a Trademark that has been registered, the assignment has to be documented in the Register of Trademarks.

Ways in which Trademark can be Assigned or Transferred

It includes −

Complete Assignment to Another Entity

The owner transfers all of its rights with regard to a mark to another entity, including the transfer of rights such as the right to future transfer, the right to receive royalties, and so on. (For example, X, the owner of a brand, enters into an arrangement with Y in which he sells Y his whole brand.) Following this point, X will no longer have any rights with regard to the brand.

Assignment to another entity, but only with regard to certain of the goods or services

The transfer of ownership is only allowed with regard to certain products or services. (For example, P is the owner of a brand that is utilised for jams and jellies as well as dairy goods. P will continue to own the rights to the brand in regards to jams and jellies, while Q will take over ownership of the brand's rights in relation to dairy products alone. This method is known as partial assignment.

Assignment with goodwill

A kind of assignment that occurs when the rights and value of a trademark as linked with the product are also transferred to another business. This type of assignment is known as a "assignment with goodwill."

(For example, P, the owner of a brand called "Shudh" that is associated with dairy goods, sells his brand to Q in such a way that Q will be able to use the name "Shudh" in relation to dairy products as well as any other items that it creates.)

Assignment without goodwill

A type of assignment that is also known as a gross assignment. This type of assignment occurs when the owner of the brand places restrictions on the buyer's rights and does not permit the buyer to use the brand for the same products that are being used by the original owner. Therefore, the buyer does not get the benefit of the goodwill that is already associated with that brand in relation to the product that is currently being sold under that name. (For example, P, the owner of the brand "Shudh" that is associated with dairy goods, sells his brand to Q in such a way that Q will not be able to use the mark "Shudh" in connection with dairy products but will be able to use this brand for any other items that are created by it.)

In this scenario, the goodwill that is associated with the brand "Shudh" for dairy products is not transferred to Q, and instead, Q will be required to create its own distinct goodwill for the brand "Shudh" in order to use it for any other product or service (such as a restaurant, which is one of the scenarios in which Q proposes to use this brand). In many countries, including the United States, it is not at all permissible to transfer a mark without first acquiring goodwill. On the other hand, assignment without goodwill is permissible in India.

Restriction on Assignment or Transfer of Trademark

The Trade Mark Act of 1999 places specific limits on the assignment of a registered trade mark in situations where there is a possibility that users and members of the public would be confused by the assignment. These constraints include things like −

Restriction on assignment that results in the creation of exclusive rights in more than one person with respect to the same goods or services, or for the same description of goods or services, or such goods or services as associated with each other. Associated goods and services refer to those that are sold together.

Restriction on assignment that would result in many persons using the trademark concurrently in various regions of the nation.

Trademark Licencing

Protecting your brand is a crucial corporate asset that may be achieved via the use of trademarks. The granting of a trademark licence may be beneficial to your company plan since it will allow your brand to penetrate other markets and regions. Through the process of trademark licencing, the owner of a specific trademark has the ability to provide a third party the right to use the trademark in a restricted manner and in exchange for a royalty, all while maintaining ownership of the property for oneself or herself.

Advantages to Obtaining a Trademark Licence

Major advantages are −

It contributes to extending the market potential of the aforementioned mark.

It has the potential to make a beneficial influence on the daily operations of a corporation.

The mark often ends up being more well-known and famous as a result of licencing agreements.

The amount of work that the corporation must do decreases.

How does one go about registering for a trademark licence?

Make sure you have a written License Agreement.

Submit a joint application with the prospective licensee to the Registrar of Trademarks using form TM-U for the purpose of obtaining a licence registration.

Send in an affidavit that has been signed and dated by the owner, and make sure to state the following information in it: the particulars of the License, the nature of the connection between the parties, the length of time for usage, and the applicable goods or services.

Make a payment to the government in the amount of Rs 4500 for each trademark that has to be licenced under each class.

It is mandatory to submit an application for registration no later than six months after the date when the parties Agreement entered into force, which was signed by both parties.

Trademark Assignment vs. Trademark Licensing

Following are the major points that distinguish both the terms from each other −

A transfer of ownership of a trademark registration can take place through the process of assigning a trademark. In contrast, when a trademark is licenced, the ownership of the trademark as well as the property rights associated with it continue to be held by the original owner, but the third party is only granted a limited number of rights to use the brand.

Writing is required for the assignment deed regardless of the circumstances. There is no need that licences be issued in written form.

A licence grants the rights for a predetermined amount of time, but an assignment may just involve a portion of those rights.

Since the ownership has been transferred, an assignment is not time-sensitive. A licence is often only valid for a predetermined amount of time.

Both the assignment and licencing of trademarks are important concerns; nevertheless, with the right planning, possibilities may be opened up for all parties involved in the transaction, including the licensor, the licensee, the assignor, and the assignee. The process of building a brand and putting it to use is included in both trademark licencing and trademark assignment. All of them are at the control of the proprietor, and they constitute efficient management strategies for the same.

Q1. What kind of impact does the assignment have on the duration of the registration period for the mark?

Ans. Transferring ownership of a mark does not result in an extension of the registration period for the mark. The assignee shall be held responsible for renewing the mark within the period of time that begins six months before the mark is set to expire. If you don't pay the renewal fee, your registration will be cancelled.

Q2. What are the key distinctions between a Registered trademark and Unregistered trademark?

Ans. A registered trademark is one that has been investigated, validated as distinctive, and granted legal protection in accordance with the Trademarks Act. When it comes to proving ownership of a trademark in court, this piece of proof is both direct and decisive. A trademark that has not been registered falls under the jurisdiction of common law and is only valid in the geographic region in which it has been used. The proprietor needs to provide evidence that his brand has garnered a sufficient amount of goodwill.

Q3. How do I go about transferring trademark rights to an individual or corporate entity that has only recently changed its name to one that is different from the one that was previously registered to hold the trademark?

Ans. If a person or business entity has changed its name but continues to own the same rights in and to a mark, then it is possible for that person or business entity to file an assignment in the same manner as if it were a distinct person or business entity that was being granted those rights.

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An assignment of trademark rights can be either outright, in that it results in the total transfer of ownership of such rights from one entity to another, or (in some countries/jurisdictions) partial, resulting in the transfer of only a portion of the trademark rights. The laws governing trademark assignments vary from one jurisdiction to another.
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In trademarks too, just like any physical property such as land, any trademark owner or brand can transfer the rights of their trademark by assignment or licensing it under The Trademarks Act of 1999. Prior to this act, the act of 1958 only covered the horizon of 'registered and permitted use'. Commercialisation of trademarks in IPR have ...
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A key difference between trademark assignment and trademark licensing is that the assignment of a registered trademark is a change in ownership. Trademark licensing, on the other hand, is the transfer of certain rights (in a limited way) to a registered trademark while retaining ownership of the trademark. First let's go, "What are ...
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The trademark assignment in the handling to license under the original Trade markets Act 1999. (The exchange of the former Trademark Act 1958) is concerned only to the 'permitted use' and 'registered use ' because the former Act was expanded to reach the range of the word 'permitted use only. The trademark should be accomplished to ...
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Example: Monaco Coach, a manufacturer of luxury recreational vehicles. entered into a licensing agreement with Dodge, a manufacturer of trucks, to use the Dodge trademark and logo on their trailers. By this agreement. Dodge successfully extended their product (trucks) into (trailers). (4) Co-branding.
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Navigating the world of intellectual property can be a complex endeavor for businesses selling goods or services. In this realm, understanding the differences between trademark assignment and licensing becomes crucial. This article will delve into these two concepts, providing a comprehensive understanding of what they entail, how they function, and why businesses might choose one over the other.
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The assignment and licensing can be made with or without the goodwill of the business concerned. A trademark need not be registered to be assigned or licensed. Assignment of a trademark. Section 2(b) of the Trade Marks Act 1999 describes "assignment" as an assignment in writing by an act of the parties concerned.
Difference between Trademark Assignment and Trademark Licensing
A trademark assignment is a transfer of ownership of the trademark registration. Whereas in licensing, the original owner retains ownership and proprietary rights to the trademark, but only a few limited rights to use the brand are granted to the third party. The assignment agreement must be in writing. Licensing does not have to be in writing.
Trademark Assignment
A Trademark Assignment is a document used when one person owns a registered trademark (like a brand name or logo) and wishes to transfer the ownership of that trademark to another person. ... A Licensing Agreement or Intellectual Property Release or even Trademark Assignment could come after the Intellectual Property Permission Letter, but that ...
ASSIGNMENT AND LICENSING (SEC-48 TO 53)
The following is the definition of trademark assignment: - A trademark assignment is the transfer of the owner's right in a trademark to another person. The transferring party is referred to as the assignor, and the receiving party is referred to as the assignee. The Trade Marks Act of 1999 defines "assignment" as a written assignment ...
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Trade marks can be exploited in a number of ways. They might be directly exploited by a trade mark owner (ie by self-use), or they could be used to generate income by transferring rights in the mark to other parties by various methods—including assignment, licensing and by using them as security to raise funds.This Practice Note deals with the assignment and licensing of trade marks.
What is the difference between trademark licensing and trademark
Assignment of a trademark is a transfer in the ownership of the trademark registration. Whereas in licensing, the ownership and proprietary rights of the trademark continue to remain with the original owner, but only a few restricted rights to use the brand are given to the third party. The assignment deed must be compulsorily in writing.
Differences Between Trademark Assignment & Trademark Licensing
In trademark licensing, the owner of a particular trademark can grant a third party a limited right to use the trademark in exchange for royalties while retaining ownership. Benefit of Trademark Assignment and Trademark License Trademark Assignment. Each trademark assignment is recorded in registry records and serves as evidence of trademark ...
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Assignment and Licensing of trademark are two important concepts. While assigning and Licensing of trademark, the Licensor and licensee must come together and define the rights and obligations in an agreement. It would be correct to take expert legal advice while preparing the agreement to protect oneself.
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IP rights assignment. You can sell your IP asset to another person or legal entity. When all the exclusive rights to a patented invention, registered trademark, design or copyrighted work are transferred by the owner to another person or legal entity, it is said that an assignment of such rights has taken place. Assignment is the sale of an IP ...
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Trademarks are artistic symbols, words, phrases or combination thereof, used to identify and distinguish certain goods or source of services from that of other similar goods or services available in the open market. In India, trademarks are governed under the Trade Marks Act, 1999 ("the Act") and are defined under Section 2 (zb) thereof.
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Process of Assignment and Transmission of Trademark (Section 45) Application to the Registrar of Trademark in Form TM-P. (with the original copy of duly certified documents) Registrar will dispose of his decision within 3 months. a).Inform the applicant about the assignment or.
India
In India, The Trade Marks Act, 1999 deals with assignment as well licensing of trademarks. To put it summarily, in case of an assignment of a trademark, there is a change in the ownership of the registered brand and in case of licensing, the right in the trade mark continues to vest with the original owner but only few restricted rights to use ...
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Consideration and reversal of transfer: IP licensing allows for long-term compensation and the reversal of rights transferred if the deal appears to be unprofitable. IP assignment, on the other hand, requires upfront payments and does not allow for reversal of title over transferred assets. Students of Lawsikho courses regularly produce writing ...
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Trademark Licensing in India. Trademark Licensing refers to authorizing the use of the concerned trade mark by another party and rights in relation thereto. Authorizing a third party for using the trade mark is tenable on receipt of "royalty" in exchange for such use. Thus, Trademark Licensing refers to the mode of transfer of rights ...

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● Complete Assignment of the trademark to another entity