Here’s Why You Should Handle a Trademark Assignment Properly

BlogTrademark    October 12, 2022
Here's Why You Should Handle a Trademark Assignment Properly Posted On

Owning a trademark undoubtedly counts as one of the most valuable and crucial assets for every business company or organization. Hence, it becomes imperative not to stay ignorant about a Trademark Assignment. When a business or brand owner mishandles or infringes the Trademark Law during a trademark assignment, it could discredit the enforceability of the trademark entirely, thereby zeroing out its worth.

Moreover, trademark assignment proves to be beneficial for both parties involved. It provides you the authority to assign your trademark to another individual or entity temporarily or permanently. Although the trademark assignor profits from royalties on the trademark, the assignee obtains the authority to expand and enhance its market functions by using the brand name and extending its identity. Let us now understand why a trademark assignment should be handled properly.

Overview of Trademark Assignment

According to the Indian Trademark Act of 1999, trademark assignment refers to allocating a trademark in writing by the deed of the parties involved. In straightforward terms, it refers to assigning a trademark in writing by its holder or any other authorized person to another individual. Furthermore, a trademark proprietor can allocate the trademark of all the concerned products or services or only some of them. A trademark owner can even assign the goodwill of the business or brand along with the trademark or exclusively the trademark without brand goodwill.

In the scenario where two businesses merge, the trademark of the merging business gets transferred to the merged business. This merger between the business companies comprises a trademark assignment.

What is the Importance of Trademark Assignment?

Owning a registered trademark safeguards your brand from cyber criminals and enables you to realize the actual worth of your brand name and identity. Trademark assignment is one of the many advantages that come with obtaining a trademark registration. It allows you to assign or allocate your trademark to another individual temporarily or permanently.

Here are a few points explaining the significance of trademark assignment in India.

  1. Trademark Assignment Helps Expand Your Business

A trademark assignment can be exceedingly beneficial if your objective is to grow your brand or business cost-effectively and seamlessly. You can add support from another firm or organization to help establish and develop your enterprise by assigning your brand name. Both the assignor and assignee extract benefits from a trademark assignment. You get to reach out to areas you wouldn’t have been competent enough to reach had you been operating your business company alone. Additionally, by partially assigning your trademark to another individual or entity, you get the adaptability to function well with more dealers, thereby expanding your business company into new markets.

  1. Trademark Assignment Helps Enhance Your Marketing Strategy

Not every individual or entity owning a trademark is a competent marketer. And considering the significance of how you interact with your customers, you must be proficient at marketing to reach the most extensive target audience. Allocating or assigning your brand name to another individual or entity can help diversify your overall marketing strategy. The assignee shall spin aspects to obtain access to the customer base. Their techniques will be unique and different from yours, and as a result, they will be more efficient.

  1. Trademark Assignment Works as Valid Trademark Proof

With trademark assignment, you shall have more effective tools to battle resistance. Allocating or assigning your trademark to another individual or entity is a lawful process that requires using statutory documents. Legal ownership would get readily and easily explained exclusively through the deed of a trademark assignment in a trademark dispute.

Restrictions on Trademark Assignment

The Indian Trademark Act of 1999 provides the following restrictions on trademark assignment:

  1. Parallel Use Restriction 

The assignor can’t assign a trademark in the scenario where the trademark assignment leads to the creation of exclusive rights with different individuals concerning the same or similar set of products or services and causes confusion or deception. Therefore, multiple exclusive rights concerning the same or similar products or services with different individuals are not allowed. It prevents parallel use of a trademark by more than one individual concerning the same or similar products or services.

  1. Multiple Territorial Use Restriction  

The assignor can’t assign a trademark in the scenario where the trademark assignment leads to the creation of an exclusive right with different individuals in several parts of India concerning the same or similar products or services. Furthermore, the assignor can’t assign a trademark in the scenario where the trademark assignment leads to the creation of an exclusive right with different individuals in several parts of India concerning the same or similar products or services delivered or sold outside the nation.

All in all, we can say that trademark assignment offers many benefits. These benefits, ranging from business expansion to access to new marketing approaches, make trademark registration a considerable choice. ✅ For more visit: https://www.kashishipr.com/

leave a Comment

GET IN TOUCH WITH US