Can a Trademark be Sold in India?

Last Updated at: December 23, 2020
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Trademark be Sold in India
The Delhi High Court has recently put a restriction on the selling of any third party interest in the ‘SRL’ trademark. This is after Japanese pharma major Daiichi Sankyo sought to attach and sell it to recover the amount due from 2 former Ranbaxy promoters. 

 

Yes. A trademark sale is possible in India. The owner of any trademark can sell it to any individual or legal entity through the process of trademark assignment. By doing so, the owner can assign the right of his trademark to the individual or entity. The procedure of trademark assignment governs as per the provisions in the Trade Marks Act, 1999. Let’s see whether a trademark is sold in India or not.

In the process of trademark assignment, the individual/entity that is selling the trademark labels as the assignor and the other party (who is acquiring) is the assignee.

For the trademark assignment, either the assignor or assignee needs to apply. The transfer process usually completes within six to twelve months, subject to successful verification of the credentials.  In the case of registered trademarks, such assignments need to be recorded with the Trademark Registrar. 

Types of trademark assignment in India

trademark assignment

There are different types of Trademark assignments in India. They are described below

Complete Assignment: The complete rights of the trademark are given to the assignee by the assignor. Only the trademarks rights but not the whole company’s rights. 

Limited Assignment: True to its name. Only certain rights of the particular product/service is for the assignor to the assignee.

Assignment with Compassion: The assignor not only transfers the trademark rights but also the value of the trademark in the market. The assignee has the complete rights and value of the trademark.

The assignment without goodwill: This type of assignment is mainly not permitted by other countries but this is approved in India. This type of selling means that both the seller and purchaser have rights on the trademark for different products/services. 

get Trademark registration

Restrictions on trademark assignment

The Trade Marks Act, 1999 has put certain restrictions on the assignment of registered trademarks. These restrictions apply in case of trademarks that bring the possibility of creating confusion in the minds of users/public if sold or transferred. 

Such restrictions are applicable on-

  • An assignment that creates exclusive rights on more than one person/entities about the same services/goods.
  • An assignment that leads to the simultaneous use of the same trademark by different people in different parts of the country.

How to make a proper valuation of a trademark before selling?

A trademark is a movable and intangible property. A proper estimation or valuation is required to sell a trademark at its justified price. The evaluation process involves both direct and indirect measures. A direct process of calculation is the most basic one. Here, the investment for creating and promoting the mark will consider. In the indirect method, the calculation is on other sources/aspects such as brand awareness and brand image among people. 

Let us discuss in brief, some of the prevailing approaches for proper valuation of a trademark before assignment-

  • Cost approach This approach is related directly to the cost incurred in creating or positioning the brand. 
  • Cost replacement approach- This method values the mark by calculating the expenditure and investment necessary to replace it with a new mark/brand that will provide equivalent utility to the current owner. 
  • Market-driven approach- This method considers the highest value the assignee is willing to pay or the maximum value the assignor wishes to obtain
  • Brand sale comparable approach- Here, the brand value is calculated based on the recent valuation of a similar brand in a similar industry. The valuation, in this case, observes from the consideration of a third party not related to the assignment process in question. 

Trademark symbol

Trademark symbol

The ™ symbol is for a particular association or the individual. While waiting for the completion of the Trademark Registration procedure. When a particular product has a Trademark that doesn’t mean it is a Registered Trademark. ™ symbol is for un registration Trademarks but the ® symbol is for unregistered Trademarks. The symbol should for only Trademarks registration purpose.

The ™ trademark has no protection while the symbol ® has protection and also legal rights. SM symbol is used to represent services by an individual or a company but not manual products. It is inaccurate to use ™ symbols if you sell services rather than products and vice versa. Trademark registration fees are expensive but you will also get the maximum benefits from it. With the trademark registration, you can use the ® symbol for your product. Trademark registration international can have the usage of the basis of registration in India.

Conclusion

The whole process of selling a trademark is easy and also doesn’t require tons of paperwork. Selling a Trademark gives a chance to utilize a trademark without completion of the trademark registration procedure.

Click here: Register Trademark

0

Can a Trademark be Sold in India?

320
The Delhi High Court has recently put a restriction on the selling of any third party interest in the ‘SRL’ trademark. This is after Japanese pharma major Daiichi Sankyo sought to attach and sell it to recover the amount due from 2 former Ranbaxy promoters. 

 

Yes. A trademark sale is possible in India. The owner of any trademark can sell it to any individual or legal entity through the process of trademark assignment. By doing so, the owner can assign the right of his trademark to the individual or entity. The procedure of trademark assignment governs as per the provisions in the Trade Marks Act, 1999. Let’s see whether a trademark is sold in India or not.

In the process of trademark assignment, the individual/entity that is selling the trademark labels as the assignor and the other party (who is acquiring) is the assignee.

For the trademark assignment, either the assignor or assignee needs to apply. The transfer process usually completes within six to twelve months, subject to successful verification of the credentials.  In the case of registered trademarks, such assignments need to be recorded with the Trademark Registrar. 

Types of trademark assignment in India

trademark assignment

There are different types of Trademark assignments in India. They are described below

Complete Assignment: The complete rights of the trademark are given to the assignee by the assignor. Only the trademarks rights but not the whole company’s rights. 

Limited Assignment: True to its name. Only certain rights of the particular product/service is for the assignor to the assignee.

Assignment with Compassion: The assignor not only transfers the trademark rights but also the value of the trademark in the market. The assignee has the complete rights and value of the trademark.

The assignment without goodwill: This type of assignment is mainly not permitted by other countries but this is approved in India. This type of selling means that both the seller and purchaser have rights on the trademark for different products/services. 

get Trademark registration

Restrictions on trademark assignment

The Trade Marks Act, 1999 has put certain restrictions on the assignment of registered trademarks. These restrictions apply in case of trademarks that bring the possibility of creating confusion in the minds of users/public if sold or transferred. 

Such restrictions are applicable on-

  • An assignment that creates exclusive rights on more than one person/entities about the same services/goods.
  • An assignment that leads to the simultaneous use of the same trademark by different people in different parts of the country.

How to make a proper valuation of a trademark before selling?

A trademark is a movable and intangible property. A proper estimation or valuation is required to sell a trademark at its justified price. The evaluation process involves both direct and indirect measures. A direct process of calculation is the most basic one. Here, the investment for creating and promoting the mark will consider. In the indirect method, the calculation is on other sources/aspects such as brand awareness and brand image among people. 

Let us discuss in brief, some of the prevailing approaches for proper valuation of a trademark before assignment-

  • Cost approach This approach is related directly to the cost incurred in creating or positioning the brand. 
  • Cost replacement approach- This method values the mark by calculating the expenditure and investment necessary to replace it with a new mark/brand that will provide equivalent utility to the current owner. 
  • Market-driven approach- This method considers the highest value the assignee is willing to pay or the maximum value the assignor wishes to obtain
  • Brand sale comparable approach- Here, the brand value is calculated based on the recent valuation of a similar brand in a similar industry. The valuation, in this case, observes from the consideration of a third party not related to the assignment process in question. 

Trademark symbol

Trademark symbol

The ™ symbol is for a particular association or the individual. While waiting for the completion of the Trademark Registration procedure. When a particular product has a Trademark that doesn’t mean it is a Registered Trademark. ™ symbol is for un registration Trademarks but the ® symbol is for unregistered Trademarks. The symbol should for only Trademarks registration purpose.

The ™ trademark has no protection while the symbol ® has protection and also legal rights. SM symbol is used to represent services by an individual or a company but not manual products. It is inaccurate to use ™ symbols if you sell services rather than products and vice versa. Trademark registration fees are expensive but you will also get the maximum benefits from it. With the trademark registration, you can use the ® symbol for your product. Trademark registration international can have the usage of the basis of registration in India.

Conclusion

The whole process of selling a trademark is easy and also doesn’t require tons of paperwork. Selling a Trademark gives a chance to utilize a trademark without completion of the trademark registration procedure.

Click here: Register Trademark

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