Trademark is your business identity which can be converted into a handsome amount of money.
You can sell a trademark to another party through a Trademark Assignment and liquidate the brand value in exchange for money. The other alternative is trademark registration licensing which is similar to selling your trademark but for a limited period.
The entire process for both is easy and does not require much hassle; however; it is always better to complete the process through a professional attorney.
Selling/Transfer of Trademark and its rights
Selling or transfer of a trademark involves two parties. The person who is selling the trademark is an assignor while the other party to which it is sold is the assignee.
The process can be initiated when, both the parties agree to certain terms and conditions required for transfer of trademark rights.
The assignee(trademark owner) should have a registered trademark to sell it to the other party.
There are different ways of selling a trademark and its rights –
- Transfer of Rights(Complete Assignment)
The assignor can transfer all the rights of a trademark like the right to further assignment, royalties, licensing, etc.
Once the assignment is complete, the assignor cannot exercise any control over the trademark.
Also Read:- The Unexplored Facts Of Content Marketing
- Transfer of Rights(Partial Assignment)
In this case, the assignor can give the full rights of the trademark and the details of the product and services related to it.
Trademark Assignment without Goodwill
In this case, both the parties can use the trademark but only for distinct products or services. i.e.
Before using the trademark commercially, you need to make sure that it is not being used under the same NICE class of products or services.
Ways to sell a Trademark
There are certain ways by which one a trademark can be assigned. Here, in this case, both the parties have to agree on the terms and conditions and the type of assignment.
Here is the step by step details of how the trademark assignment process can be initiated –
- Either the parties or any one of them can file an application form TM-P to begin the process of Assignment.
- The application needs to be submitted within 6 months of the possession of the proprietorship. However; it can be done even after 6 months or 1 year of registration.
- The Registrar will review all the details and if satisfied he/she will assign the trademark to the proposed one.
Advantages of selling your Trademark
Since the complete procedure happens with the mutual consent of the two parties, they are likely to benefit from the assignment.
According to the Trademark Act 1999, the terms and conditions of the assignment must not hamper the interests of any party.
Selling of trademark, allows assignor to convert the brand value regarding money.
The assignee can use a well-established brand name for his/her commercial uses. It also acts as a legal proof in case any dispute arises between the two parties after the assignment.
The Alternative: Trademark Licensing
Trademark Licensing is another alternative from which you can make money.
The concept is similar to the Trademark Assignment but, the transfers of rights differ in the case of licensing a trademark.
With a registered trademark, the rights lie with the trademark owner. The licensor [trademark owner] provides certain rights to the licensee [the other party] for an agreeable period to use the trademark for commercial purposes.
What is the process?
The process of Trademark Licensing is simple and does not require much of the technicalities. It is always safer to take the help of an experienced attorney for applying.
- A trademark licensing agreement is drafted with the complete details of the two parties.
- Once the application is submitted, the registrar will rectify all the details and approve the agreement on complete satisfaction.
Merits of Trademark Licensing
The reasons why a trademark owner opts for licensing his/her trademark are –
- Your business has scope for expansion in case the other partner operates in a different place or market.
- The brand value improves with the increase in the customers and marketing of different goods or services under the same trademark.
- Both the parties are responsible for the reputation and value of the trademark until the time the agreement is in service.
Trademarks can help you make a lot of money if you have more than one trademark. Both the parties are benefitted with the mutual partnership especially, the other party.
He/She does not have to go through a lengthy procedure of trademark registration to get a trademark for the business.