Among Trademark owned by a Promoter or Company, Which One is Better?

Among Trademark owned by a Promoter or Company, Which One is Better?
Karan Singh
| Updated: Apr 22, 2021 | Category: Trademark

A company can apply for Trademark Registration as the owner of the Trademark owned by a Promoter. The proprietorship can be decided by a common understanding between the management and the promoters of the company. Therefore, a question arises as that which one is better in between a Trademark owned by a promoter or a company. The Trademark owned by a company is far better than the Trademark owned by the promoter to build the company’s brand name. In this blog, we are going to discuss the importance of a Trademark owned by a Promoter or company.

Importance of Trademark Registration

A registered Trademark safeguards your brand or logo and offers you the tools to prevent someone from riding on your business back. Trademark is capable of differentiating the products and services of an individual or company from others in the market and consists of the shape of goods, their packaging, labelling, and a combination of colours. Following is the importance of Trademark Registration:

  1. Brand Protection: A registered Trademark begins ownership over the brand, logo, or name. It safeguards your logo or brand from any Trademark Infringement by any unauthorized person or any third party.
  2. Easy for Customer to Recognize: A registered brand name makes it very easy and simple for customers to recognize the product. As it is an effective instrument and unique in its identity, the registered Trademarks can be easily noticeable, and customers may reach your product effortlessly.
  3. Provides Individuality to Brand: A brand that is distinct and unique should be registered as every company or business requires a logo or brand that stands out, which distinguishes your brand from others in the market. Therefore, a registered Trademark provides a distinct identity to your brand.
  4. Valuable Assets: A registered Trademark may prove to be a valuable asset for your business or company. Such assets keep on growing over time. As your business escalating over time, the value of Trademarks gets increased.
  5. Easy Communication Tool: Trademarks are an effective and easy communication tool. A registered Trademark can be easily recognized which brand your product belongs to.

An Overview of a Trademark Owned by a Promoter

The promoters of a proposed company can apply for Trademark Registration in its name. One cannot file a Trademark application in the company’s name, which is only in the form of the proposed company. But, once the Trademark Registration is done, the applicant can assign the rights for using the Trademark in the company’s name for the business drive.

Also, remember that an application for Trademark Registration is made to register the brand name; hence the similar name can be approved by the Ministry of Corporate Affairs[1] (MCA) without any hurdle for a designated Private Limited Company. Therefore, one can count this as the huge benefit of Trademark Registration.

Significance of Trademark Owned by a Promoter

Once the registration of the Trademark is done, the rights can be assigned by a company’s owner for the Trademark usage for the purpose of business. An application of a Trademark proves to be a huge support for name approval for a Company Registration. Hence, it becomes an essential advantage of Trademark Registration before registering a company. Otherwise, protecting the brand name from opponents and threats, the Trademark owned by the promoter will be beneficial for the upcoming forming company.

Promoters get secure by Trademark Registration, as no other individual can make any unauthorized usage of Trademark. Once the Trademark is applied for an entity or a company, it can begin to add for ™ or ® symbol, which is a Trademark symbol of ownership for all the customers and competitors who wish to approach a company. Further, the company already registered can receive the Trademark in its own name on the Goodwill earned and will also get the safety against violation.

Which is more advantageous as Trademark owned by a Promoter or Company?

If proprietorship rights are held by an individual other than a company or LLP (Limited Liability Partnership), in whose name products or services covered under a particular Trademark class is dealt, the third party will not be able to show any documental evidence in own name. It has been existing in the name of the company and not in the promoter’s name or other parties. Therefore, all the Goodwill built at the time of application and can be claimed by the company only.

While giving the documents at the time of the hearing or another stage of the Trademark application, in lack of documentation evidence in the name of the third party may lead to cease an application for Trademark from the further procedure, the Trademark applied can get abandon status. But, an agreement of a third party or a promoter with the company will be able to correct the issue raised.

The Trademark is a valuable asset for the company or an individual putting efforts to create the brand name. The primary concern for filing an application for Trademark Registration is the applicant’s name in whose ownership name will lie of the proposed Trademark. However, the combined efforts of a group of individuals may have a problem issue regarding the ownership and financial benefit out of a Trademark.

A Limited Liability Partnership (LLP) or a company enjoys an individual existence from its owners, and hence it will also grip assets in its name without the interference of rights by the promoters or owners. The promoters hold the uppermost beneficial interest for creating a brand of the concerned LLP or company.


The Trademark owner will hold responsible for any issue regarding the Procedure of Trademark registration, Trade name, or other allied matter. When one claims for a proprietorship, the property risk also passes with it. If you face any problems at the time of Trademark Registration, then you can hire an expert who will assist you.

Also, Read: A Complete Guide on Trademark Registration for Partnership Firms in India

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Karan Singh

A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.


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