Do you know that to leverage the benefits of a trademark, it is essential for a trademark assignment to be handled properly?
Owning a trademark is broadly regarded as one of the most important and valuable assets for any company. Therefore, it is crucial not to be ignorant about a trademark assignment. When a business owner mismanages or infringes the law while engaging in a trademark assignment, it could entirely discredit the enforceability of the trademark, thereby zeroing its worth.
Using the free trademark search engine provided by Vakilsearch, you can determine whether a trademark is accessible before beginning the registration process.
In addition, the trademark assignment is beneficial to both the concerned parties. It offers you the power to assign your trademark to another individual temporarily or permanently. While the assignor profits from royalties on the trademark, the assignee acquires the authority to expand its market functions by using the brand name and extending its identity. Read on to learn why it is important for a trademark assignment to be handled properly.
Assignment of trademark: An overview
According to the Trade Marks Act, 1999, trademark assignment means allocating the trademark in writing by the deed of the concerned parties. In simpler terms, it is sharing a trademark in writing by the holder or any individual authorized by them to another individual.
In addition, a proprietor can allocate the trademark of all their goods and services or only some goods and services. The trademark owner can assign even goodwill of the business along with his mark or exclusively trademarks without brand goodwill. Also, note that an unregistered trademark can be allocated to another person. When two businesses merge, the trademark of the merging enterprise gets transferred to the merged business. This merger of the trademark between the companies comprises a trademark assignment.
Furthermore, a trademark is allocated with goodwill when the registered trademarks are assigned to the business concerned goodwill. If a trademark is assigned regarding goods exported from India or assistance is offered outside India along with the goodwill of the export company, it comprises a trademark assignment with goodwill.
Additionally, a trademark is allocated without goodwill when only the trademark of the company’s goods or services is given. When an assignment of a trademark is made without the goodwill of a business, it is not lawful unless the individual it is allocated makes a formal application to the Registrar. Such formal application should be completed within six months to the Registrar for the trademark assignment promotion, advertised in such form and manner as the Registrar mandates.
Understanding the importance of trademark assignment
Getting a trademark registration not only guards your brand against cybercriminals but also allows you to realize the actual worth of your brand name. The capacity to assign a trademark is one of the advantages of getting this registration. It lets you assign your trademark to another individual temporarily or permanently. Here are some points that state the significance of trademark assignment in India.
- Help expand your business
Assigning your trademark can be beneficial if you’ve always wanted to grow your business seamlessly and cost-effectively. You can add backing from another organization to help develop your enterprise by licensing your brand name.
Both the assignee and assignor benefit from trademark assignment, and you get the possibility to reach out to areas you wouldn’t have been competent to reach if you were operating the company alone. Likewise, by partially allocating your trademark to another individual, you get the adaptability to function with more dealers, and, as a result, you can expand your company into new markets.
- Works as a valid trademark proof
With the examples of trademark assignment, you will have better tools to combat any resistance. Assigning your trademark to another individual is a lawful procedure that demands using statutory documents. In a trademark dispute, legal ownership would get readily explained exclusively through the deed of trademark assignment. The Registrar guarantees all reviews are in place by examining the validity of all agreements’ requirements and publicizing the assignment in the trademarks periodical.
- Expanding your marketing strategy
Not every person who holds a trademark is a competent marketer. And, given the significance of how you communicate with your customers, you’ll need to be proficient at marketing to reach the most extensive possible audience.
Diversifying your marketing strategy by allocating your brand name to another. The assignee will spin aspects to acquire access to the customer base. Their technique will be distinct from yours, and as a result, it will be more efficient.
What do we mean by the transmission of a trademark?
According to the Trade Marks Act, 1999, transmission implies the transfer of a trademark by process of law or devolution on the personal agent of a departed individual, which is not an assignment. It indicates a trademark is transferred from the holder to the other individual by some basis of law or their lawful agents on death.
Any method of transfer that is not by trademark assignment is a transmission. In addition, trademark transmission can relate to some or all the trademarks in the goods and favors. It can be with or without the goodwill of the company involved.
What are some restrictions on trademark assignment?
A trademark cannot be transmitted or transferred when more than one individual gets the exclusive right to employ the trademarks which are identical or resemble each other and causes chaos to the public relating to the-
- Same services or goods
- The exact description of goods and services or
- Goods or services or explanations of goods or services are linked.
Nevertheless, such trademarks can be allocated if the proprietor applies to the Registrar of Trademarks with a notification stating the circumstances. The Registrar issues a certificate declaring that the submitted assignment is lawful. The certificate administered is definitive as to the validity of the assignment if the individual to whom it is assigned applies to get the trademark registered in the person’s name within six months from the date of allocating of the certificate by the Registrar.
The bottom line
To sum up, we can say that trademark assignment provides many benefits. These advantages, which differ from expansion to access to new marketing approaches, make trademark registration a considerable choice.
Get in touch with the experts at Vakilsearch for more information.
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