Assignment and Transmission of Trademark
Trademarks
play the most crucial role in establishing the Brand Identity of a business.
So, it is a must to go for trademark registration
online if you plan for the long run. However, sometimes the mark you want
or need or are using without registration may already be registered by someone
else. Interestingly, the assignment and transmission of trademark is the
solution for this problem.
ASSIGNMENT OF TRADEMARK IN INDIA
An
assignment of a trademark is a document that transfers the recognizing word,
symbol, and owner from assignor to assignee.
Types of Assignment of Trademark
- Assignment
of trademark concerning only some services or products
In this,
the assignment of trademark limits for specific goods and services.
- Assignment
with goodwill
In
this, the assignment includes absolute ownership also the rights and duties
associated with the product.
- An
assignment without goodwill
An
assignment that does not constitute goodwill is known as a gross assignment. It
refers to restrictions of rights of the buyer whereby it limits the new owner
of using the brand on products that the original owner is already.
Advantages of Assignment of Trademark
Unlock value: It helps unlock the actual brand value and helps
the assignee to get renown.
Proof validity: If any dispute takes place; which relates to the
trademark, the deed of the assignment will be valid proof for any legal rights.
TRANSMISSION OF TRADEMARK IN INDIA
Transmission
of trademark is wherein the mark in authorization to the third party is given
to use in the course of trade. However, the transferring party does not pass
the ownership of the trademark.
Advantages of Transmission of a Trademark
Both the
licensee and the licensor enjoys the perks or benefits of transmission of
trademark.
Licensee: Licensee gets an opportunity to widen his market chain operations by
using the trademark (its goodwill, reputation, and brand value).
Licensor: The licensor savours his rights through royalties generated through
the transfer of trademark. In fact, without even passing the ownership or
through transmission.
REQUISITES OF TRADEMARK TRANSMISSION AGREEMENT AND
CONDITIONS FOR CANCELLATION OF TRADEMARK TRANSMISSION:
- The
agreement shall implement quality checks and controls on the goods and
services. Because of this, the quality of the trademark will not tarnish
or destroy.
- The
necessary clause is to be present.
- The
territory for which the grant of license is complete.
- The
term of the license.
- Consideration
for the grant.
- Termination
clause.
- Indemnification
clause.
Conditions of Cancellation:
- When
the party breaches the terms of the agreement.
- When
the usage of a trademark is for some other purpose.
- If
confusion is being created in the minds of people.
- When
the party does not disclose the material facts about the mark.
- If
the trademark is used for fraud.
Difference between assignment and transmission of
trademark:
- The main
difference between assignment and transmission is that the ownership in an
assignment, either absolute or not absolute, transfers to the party.
- Whereas
in the case of transmission, the ownership is not transferable. However,
only the trademark passes to the party.
- The
second difference between both is that assignments can only be in
writing.
- On
the other hand, the transmission of trademarks can be both orally and in
writing.
- The
assignment of trademark costs more rather than transmission because the assignee
grants full ownership of the property.
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