A trademark is a design, symbol, word or phrase that identifies the source of your products and distinguishes them from the products of other companies. For example, the word “Dell” is a trademark, as are “Dell” written in stylized script on the laptop covers. As in case of physical property we can transfer the ownership or can giver rights to others to use it similarly in case of trademark also it can have done through trademark assignment and trademark licencing.
Assignment of Trademark-
When a person transfers the ownership of the trademark to third party then it is called trademark assignment. It is bit clear by name “trademark assignment” that it assigns the rightsinvolved with trade mark to someone else. We can also say that 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.
If your trade marks are registered the there are certain restriction for assignment of such trade marks under the Trade Mark Act 1999 to avoid the possibility of confusion in trademark. These 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-
Trademark licencing is a type of mark or permission to a third party to use the trademark without taking its ownership by giving some royalty as consideration. For trademark licence the word used in trademark Act is ‘Registered user’. Trademark licencing provide benefit to both the parties as one party get chance to expand their market by using the reputation of other while other get payment in form of royalty.
Why should one license a trademark?
It’s the best way in which you can expand your business. More notably, it is economically really valuable for both the licensor and the licensee. To be more exact, from the licensor’s point of view, it is that effective business strategy that will only result in your already well-recognised trademark to become even more reputed. Like mentioned earlier, it is also a good way to expand your trademark’s geographical reach, improve brand visibility and other like things.
From the licensee’s point of view, it gives you the chance to associate yourself with a well-recognised trademark; thereby giving you an upper hand on your competitors.
The difference between Trademark Assignment and Trademark License are: –
1. Assignment of a Trademark basically means selling the complete ownership. Licensing of Trademark means renting of the Trademark.
2. The assignment deed must be compulsorily in writing. License is not required to be in writing.
3. Assignment of Trademark can be made wholly or partly, License is giving the rights for a specific period of time
4. Assignment of trademark is not time sensitive, ones assigned the ownership is completely gone. Licensing is only for a limited period of time.
OUR SERVICES
Company Registration I Trademark I Copyright I Patent I GST I MSME
ISO Certification I Website/App Policy I Legal Documentation
Annual Compliance I Connect Consultant
Visit: Aapka Consultant to get Online Services of CA CS & Lawyers
