Updated on March 08, 2025 12:19:38 PM
Trademark assignment refers to the transfer of ownership of any trademark, whether registered or otherwise, from one person or party to another. This is most important during mergers and acquisitions, business transformation, or any other cardinal changes to ensure that it does not lose its face among clients and competitors. In India, trademark registration plays a crucial role in this process, as only a registered trademark can provide the legal protection necessary for a smooth and enforceable transfer of rights. Trademark assignment is beneficial for the business because it safeguards the proprietary rights of the business and also helps a business maintain its market position, which is a lot important because legal disputes related to trademark ownership and use become common in today’s business environment.
Trademark assignment is a process in which the ownership of a trademark or a mark that is in the process of being registered is passed on to a new owner. This can be a partial or an absolute process and can occur in the form of a sale, merger, or a change of ownership. It is contractual and should be supported by the assignment agreement. The assignment of the trademark ensures that the new owner is vested with the sole rights of using, licensing or even enforcing the mark. Trademarks in India are required to be registered or recorded with the Trademark Registry for them to be considered legally valid. Documentations and lawful approvals prevent cases of arguing and guarantee the regularity of the brands and characters for businesses and individuals.
In India, the trademark assignment process is regulated by the Trademarks Act of 1999 and Trade Marks Regulation 2017. Here’s a step-by-step guide:
Draft an assignment deed regarding the trademarks, ownership rights, consideration clause, and terms of transfer. This legal document is important for the clarification of the further relations between the assignor and the assignee.
Submit Form TM-P along with trademark registration number, details of assignor and assignee, type of assignment, and assignment deed if any.
Fees depend on the type of entity and how it is filed. For e-filing, an individual start-up or MSME’s cost is ₹4,500 while for others, the cost is ₹9,000. The physical filing costs are relatively higher for all the applicants.
The Trademark Registrar checks the application prepared for compliance. If there are any problems or doubts, official communication is made to address any problems before moving forward.
When necessary, it is entered into the Trademark Journal to let the public respond to it accordingly. This step is crucial to prevent or avoid any unauthorized transfer of trademark rights.
Upon confirmation, the assignee is considered the owner of the trademark by the law. The Trademark Registry also issues the applicant with an assignment certificate as proof of transfer of rights.
There are a number of documents which are important for trademark assignment process. The list of all the necessary documents is given below:
The government fee for registering a subsequent proprietor in a trademark assignment is INR 9,000 per trademark for online applications and INR 10,000 for offline application submissions at the Trademark Office. Ensuring a seamless trademark assignment process requires accurate documentation and timely filing, safeguarding legal ownership and preventing potential disputes.
The Trademarks Act, 1999 restricts trademark assignment in two different ways. Both the ways are given as following:
A trademark assignment offers several advantages, making it a valuable process for businesses and individuals looking to transfer ownership rights efficiently. The benefits are given as follows:
The trademark proprietor transfers all rights in the trademark to another person, including the right to earn royalties, to further transfer, etc.
In this type, the assignment can be made to the assignee only with respect to some goods/services. The transfer is restricted to some specific goods/ services.
In it, the trademark proprietor transfers the rights, entitlements, and values associated with a trademark to another individual. When a trademark is assigned with goodwill, the assignee may use it for any class of products or services, including those currently in use by the assignor.
This is the type of the assignment in which the goodwill of the product is not transferred along with the assignment of the trademark. The owner of the brand restricts the rights of the assignee and does not allow him to use such trademark of the brand for the products being used by the assignor. Such an assignment is also referred as gross assignment.
A registered trademark can be assigned to the other person in the following situations, as mentioned below:
Death of the Trademark owner: When the owner i.e. assignor dies, it’s ownership passes to the successor of the previous owners in a will or estate. The condition is that the Trademark must be valid and should not have been abandoned by the previous owner.
Sale of business: Like other properties , intellectual properties are also the assets for the company. Even the trademark is also sellable along with the company. Provided, it has to be registered under the company’s name. If a company acquires a business along with the trademark rights with regard to the sale of assets of the company, the intellectual properties are also said to be transferred.
Change of the ownership of the business: When two companies decide on having a merger or an amalgamation of the company, a notification is sent to the registry. All the intellectual property of the acquired company are transferred to the new owner through the trademark assignment agreement between the parties.
Change in form of business: Whenever there is a change in business plan or it’s form or structure, an assignment is a boon for those businesses.
According to Section 37 of the Trade Marks Act 1999, the proprietor of a trademark can assign the title of the trademark and claim an amount for the assignment. This means that a trademark holder can transfer trademark rights to another person or entity, either with goodwill (complete transfer) or without goodwill (restricted transfer). A trademark assignment ensures legal ownership is properly transferred, protecting the rights of both parties involved. Proper documentation and registration of the assignment with the Trademark Registry help avoid future disputes.
For completion of the assignment of trademark, there are a few basic requirements that need to be fulfilled by the parties.
A Trademark Assignment Agreement is a legal document through which the proprietor of a trademark transfers their rights to an assignee. When drafting this agreement, the following key aspects should be carefully considered:
Trademark assignment is very important in business transactions as it facilitates the transfer of trademark ownership and, at the same time, protects the relevant property rights. They make legal decisions, reduce conflict, and sustain commercial harmony. For the transfer to be valid, it requires proper documentation that should follow the Trade Marks Act of 1999 and approval of the Trademark Registry. Whether the trademark holder decides to merge with another company, be acquired, or engage in a partnership, a good assignment helps in the maintenance of the trademark. To ensure compliance with the legal framework and to ensure long-term protection and market control of the trademark, it is possible to properly transfer it in a logically constructed agreement.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
A trademark assignment can be a complete or partial transfer of trademark ownership from one party to another by means of an agreement.
This includes such steps as preparing the assignment agreement, filing Form TM-P with the appropriate fees, getting an acknowledgment from the trademark registrar, and updating ownership records.
Let's assume a company gives up its brand name and logo to another company and, through a legal process of writing, passes them special rights; then it is known as trademark assignment.
Assignment is the act of passing ownership of the trademark to a third party, whereas transmission denotes the passing of trademark ownership due to legal or operational change.
Speak Directly to our Expert Today
Reliable
Affordable
Assured