{"id":2126,"date":"2021-02-09T09:29:02","date_gmt":"2021-02-09T09:29:02","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=2126"},"modified":"2021-02-09T09:29:04","modified_gmt":"2021-02-09T09:29:04","slug":"difference-between-assignment-and-license-under-trademarks-act-1999","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/difference-between-assignment-and-license-under-trademarks-act-1999\/","title":{"rendered":"Difference between Assignment and License under Trademarks Act, 1999"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A trademark is a\nmark which helps the owner of a brand to distinguish its products and services\nfrom the others. The <a href=\"https:\/\/swaritadvisors.com\/trademark-registration\" class=\"text-primary\"><strong>trademark registration<\/strong><\/a> is important\nfor a brand owner so as to get all the legal rights and benefits upon the\nregistration. The trademark owner gets a right to transfer his rights with\nrespect to the trademark wither by way of assignment or by licensing in India\nunder the India Trademarks Act, 1999. This article will talk about the\ndifference between assignment and license under Trademarks Act, 1999.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e42773b5f3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e42773b5f3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-assignment-and-license-under-trademarks-act-1999\/#What_is_Assignment_of_Trademark\" title=\"What is\nAssignment of Trademark?\">What is\nAssignment of Trademark?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-assignment-and-license-under-trademarks-act-1999\/#Complete_Assignment_of_Rights_to_another_Entity\" title=\"Complete\nAssignment of Rights to another Entity\">Complete\nAssignment of Rights to another Entity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-assignment-and-license-under-trademarks-act-1999\/#Assignment_with_Respect_to_only_certain_Rights_that_is_only_some_Goods_or_Services\" title=\"Assignment with\nRespect to only certain Rights, that is, only some Goods or Services\">Assignment with\nRespect to only certain Rights, that is, only some Goods or Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-assignment-and-license-under-trademarks-act-1999\/#Assignment_of_Rights_with_Goodwill\" title=\"Assignment of Rights\nwith Goodwill\">Assignment of Rights\nwith Goodwill<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-assignment-and-license-under-trademarks-act-1999\/#Assignment_of_Rights_without_Goodwill\" title=\"Assignment of\nRights without Goodwill\">Assignment of\nRights without Goodwill<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-assignment-and-license-under-trademarks-act-1999\/#Restrictions_in_respect_to_Assignment_of_Registered_Trademark\" title=\"Restrictions in\nrespect to Assignment of Registered Trademark\">Restrictions in\nrespect to Assignment of Registered Trademark<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-assignment-and-license-under-trademarks-act-1999\/#What_is_Trademark_Licensing\" title=\"What is\nTrademark Licensing?\">What is\nTrademark Licensing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-assignment-and-license-under-trademarks-act-1999\/#Agreements_for_Transmission\" title=\"Agreements for\nTransmission\">Agreements for\nTransmission<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-assignment-and-license-under-trademarks-act-1999\/#What_is_the_Difference_between_Assignment_and_License_under_the_Trademarks_Act\" title=\"What is the\nDifference between Assignment and License under the Trademarks Act?\">What is the\nDifference between Assignment and License under the Trademarks Act?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-assignment-and-license-under-trademarks-act-1999\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Assignment_of_Trademark\"><\/span>What is\nAssignment of Trademark?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The assignment of trademark means when the ownership rights of the trademark is transferred from one person to another whether along with or without the goodwill of the business. In case of a registered trademark, the assignment of it is required to be recorded in the Register of Trademarks. The <a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/trademark-assignment\"><strong>trademark assignment<\/strong><\/a> by one person to the other person can be done in the following manner<strong>:<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographics-without-heading-2-1.png\" alt=\"assignment of trademark by one person to the other person\" class=\"wp-image-2128\" width=\"424\" height=\"326\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographics-without-heading-2-1.png 988w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographics-without-heading-2-1-300x231.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographics-without-heading-2-1-768x591.png 768w\" sizes=\"(max-width: 424px) 100vw, 424px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Complete_Assignment_of_Rights_to_another_Entity\"><\/span>Complete\nAssignment of Rights to another Entity<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The owner has a right to completely transfer all his rights with respect to a mark to another entity, which also included the transfer of rights such as further transfer of rights, to earn royalty etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Assignment_with_Respect_to_only_certain_Rights_that_is_only_some_Goods_or_Services\"><\/span>Assignment with\nRespect to only certain Rights, that is, only some Goods or Services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The owner of the trademark also has the right to transfer the ownership rights partially by transfer of ownership restricted to specific products or services. This is also called Partial assignment. The ownership of trademark is limited to only certain products or services.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-trademark-assignment-in-india\/\">What is the Trademark Assignment in India?<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Assignment_of_Rights_with_Goodwill\"><\/span>Assignment of Rights\nwith Goodwill<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When the owner of the trademark transfers his rights to another person along with the absolute ownership of the rights and values associated with the product to another person, it results into transfer of goodwill. That is, the owner shall make the assignment of rights along with the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Goodwill\">goodwill<\/a> to the other person.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Assignment_of_Rights_without_Goodwill\"><\/span>Assignment of\nRights without Goodwill<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When the owner\nof the trademark transfers his rights to another person without the rights and\nvalues associated with product, it results into assignment of rights without\ngoodwill. It is also referred as gross assignment, where the owner of trademark\nrestricts the rights of another person to whom assignment is made and does not\nallow him to use such brand for the products which are being used by the\noriginal owner. And thus, the goodwill attached to the brand with respect to\nthe product is not transferred to another person.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Restrictions_in_respect_to_Assignment_of_Registered_Trademark\"><\/span>Restrictions in\nrespect to Assignment of Registered Trademark<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Trademark\nAct 1999 puts certain restriction on the assignment of registered trademarks\nwhere there exist any possibilities of confusion being created in the mind of\nthe public. Such restrictions are as follows:<\/p>\n\n\n\n<ul><li>The act restricts the assignment of rights that results in the creation of exclusive rights in more than one person with respect to the same products or services, or same description of products or services on such products or services as associated with one another. <\/li><li>The act restricts the assignment of rights that results in using of trademark by different people in different parts of the country simultaneously.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Trademark_Licensing\"><\/span>What is\nTrademark Licensing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The trademark\nlicensing is to allow the others to use the mark without assigning any rights\nor ownership and the same can be done for all or for specific goods and\nservices. The term \u201cLicense\u201d is not mentioned under the Trademarks act how it\nis mentioned as \u201cregistered user\u201d under the act. <\/p>\n\n\n\n<p>Trademark\nLicensing is beneficial and provides advantages to both the parties. Whereas,\nat the one hand the licensor enjoys its right to the trademark by getting\nroyalty for its use by the other, on the hand the licensee gets the advantage\nto expand its market operations by using the brand to develop its reputation in\nthe market. <\/p>\n\n\n\n<p>In the cases of Licensing, the licensor allows to licensee the rights over the trademark in such a manner as he may like. The licensor has a right to restrict the rights of the licensee in a trademark or brand with respect to the products or services wherein the licensee is allowed to use the mark for a specified time period with respect to the area within which it can use such mark etc.<\/p>\n\n\n\n<p>Trademark\nlicensing is where the owner of the trademark allows the other entity to use\nthe trademark and the ownership of trademark is not transferred or is not\nassigned to the other entity but a mere use of the trademark is permitted to be\nused by the licensee\/ other entity. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Agreements_for_Transmission\"><\/span>Agreements for\nTransmission<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Trademark\nAssignments are generally executed by way of trademark assignment agreements\nunder which the transmission of the transfer takes place from one entity to\nanother. The following points are required to keep in mind while drafting such\nagreements for the assignment and licensing of trademarks in India:<\/p>\n\n\n\n<ul><li>The rights of the owner of the brand are not\naffected due to the obligations contained in such agreement. <\/li><li>The requirement and decision regarding the\nassignment should be with or without the goodwill of the business is explicitly\nstated or mentioned and negotiated. <\/li><li>The agreement must be drafted while keeping in\nmind the purpose of transaction in question. <\/li><\/ul>\n\n\n\n<p>A trademark is\nlicensed by way of license agreement. According to Trademarks Act, 1999, the\nregistration of license agreement with the trademark registrar is voluntary or\nnot mandatory, contrary to the requirement in case of assignment. Also, like in\nassignment agreement, it is very important that while drafting a license\nagreement, the rights and duties of the licensee are pre- determined and\ndefined.&nbsp;&nbsp; It is important not only to\nprotect the rights of the licensor and protect the misuse but to also secure\nthe rights of the licensee to use such brand. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Difference_between_Assignment_and_License_under_the_Trademarks_Act\"><\/span>What is the\nDifference between Assignment and License under the Trademarks Act?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the\ndifferences between assignment and license under trademarks act are as follows:<\/p>\n\n\n\n<ul><li>The assignment of trademark means the transfer of ownership of rights either completely or partially to another entity. Whereas, in license of trademark it means allowing another entity to use the trademark without transferring the rights to him and earn royalty in return of it. <\/li><li>The assignment deed is mandatory in writing. License is not required to be in writing. <\/li><li>The rights are transferred either wholly or partially in assignment of trademark, whereas in license of trademark the rights are given for a specific period of time.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> Assignment and license of trademark is required to be done in accordance with the rules and procedures prescribed under the Indian Trademarks Act, 1999. When a company decides to enhance the business, it looks forward for purchasing trademark to support the motive of their business and create identity for themselves and ensure it is properly marketed. The difference between assignment and license under trademarks act is discussed above in the article and it is upon the owner of the trademark to decide whether he wishes to assign or license his trademark to the other entity.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/need-to-know-trademarks-assignment-india\/\">All you Need to Know about Trademark Assignment in India?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A trademark is a mark which helps the owner of a brand to distinguish its products and services from the others. The trademark registration is important for a brand owner so as to get all the legal rights and benefits upon the registration. The trademark owner gets a right to transfer his rights with respect [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":2127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[72],"tags":[356],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2126"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=2126"}],"version-history":[{"count":4,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2126\/revisions"}],"predecessor-version":[{"id":2132,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2126\/revisions\/2132"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/2127"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=2126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=2126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=2126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}