{"id":17280,"date":"2020-12-03T11:12:45","date_gmt":"2020-12-03T05:42:45","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=17280"},"modified":"2021-03-19T18:16:15","modified_gmt":"2021-03-19T12:46:15","slug":"is-it-possible-to-sell-a-registered-trademark","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/is-it-possible-to-sell-a-registered-trademark\/","title":{"rendered":"Is It Possible to Sell a Registered Trademark in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The 21st century has ushered in the era of globalization in India. It is beyond any doubt that today, business competition has grown tougher than ever. In such a situation, one of the most valuable assets of a business entity today is the business trademark that safeguards the business brand name. Online <a href=\"https:\/\/swaritadvisors.com\/trademark-registration\" class=\"text-primary\"><strong>Trademark registration<\/strong><\/a><strong> <\/strong>has indeed become one of the most indispensable legal formalities for a business entity, simply because people have become more and more brand conscious. <\/p>\n\n\n\n<p>Selling a Registered Trademarks have been of great significance for any business, as they help put much influence on the targeted clients. These are often instrumental in boosting sales. A <strong>TM logo<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Trademark_symbol\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup> over the product adds a huge emphasis image to it, thus serving as a mark of superiority over fellow market players. <\/p>\n\n\n\n<p>If a brand has already earned some value, the brand owners or the business house may also opt to sell its trademark to a third party. This process in legal parlance is known as Trademark Assignment.<\/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-6a37d1c4b1053\" 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-6a37d1c4b1053\"  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\/learning\/is-it-possible-to-sell-a-registered-trademark\/#Why_do_Businesses_Opt_to_Sell_their_Trademark_Registration\" title=\"Why do Businesses Opt to Sell their Trademark Registration?\">Why do Businesses Opt to Sell their Trademark Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/is-it-possible-to-sell-a-registered-trademark\/#Definition_of_Trademark_Assignment\" title=\"Definition of Trademark Assignment\">Definition of Trademark Assignment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/is-it-possible-to-sell-a-registered-trademark\/#Different_Ways_of_Trademark_Assignment\" title=\"Different Ways of Trademark Assignment\">Different Ways of Trademark Assignment<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/is-it-possible-to-sell-a-registered-trademark\/#Partial_Trademark_Assignment\" title=\"Partial Trademark Assignment\">Partial Trademark Assignment<\/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\/learning\/is-it-possible-to-sell-a-registered-trademark\/#Complete_Trademark_Assignment\" title=\"Complete Trademark Assignment\">Complete Trademark Assignment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/is-it-possible-to-sell-a-registered-trademark\/#Trademark_Assignment_with_Goodwill\" title=\"Trademark Assignment with Goodwill\">Trademark Assignment with Goodwill<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/is-it-possible-to-sell-a-registered-trademark\/#Trademark_Assignment_without_Goodwill\" title=\"Trademark Assignment without Goodwill\">Trademark Assignment 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-8\" href=\"https:\/\/swaritadvisors.com\/learning\/is-it-possible-to-sell-a-registered-trademark\/#Documents_required_for_trademark_assignment_in_India\" title=\"Documents required for&nbsp;trademark assignment in India\">Documents required for&nbsp;trademark assignment in India<\/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\/learning\/is-it-possible-to-sell-a-registered-trademark\/#Additional_Validation_Requirements_of_Trademark_Assignment\" title=\"Additional Validation Requirements of&nbsp;Trademark Assignment\">Additional Validation Requirements of&nbsp;Trademark Assignment<\/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\/learning\/is-it-possible-to-sell-a-registered-trademark\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_do_Businesses_Opt_to_Sell_their_Trademark_Registration\"><\/span>Why do Businesses Opt to Sell their Trademark Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The business may opt to sell their registered trademark in the near future due to a variety of reasons such as:  <\/p>\n\n\n\n<ul><li>Dissolution of the business.<\/li><li>The amalgamation of 2 or more business units.<\/li><li>The takeover of business by another entity.<\/li><\/ul>\n\n\n\n<p>Whatsoever be the reason behind the selling of an existing trademark, the brand owners may sell their brand names along with their trademarks to any third party through the process of trademark assignment. The term itself denotes that the right over the existing trademark registration has been \u201cassigned\u201d to a particular individual or an entity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Trademark_Assignment\"><\/span>Definition of Trademark Assignment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to Section 37 of the Trademark Act 1999, trademark assignment has been defined as below- <br> \u201cA transfer of an owner\u2019s right, title, &amp; interest in a registered trademark or brand mark. In a case a trademark is registered, the assignment is required to be recorded in the trademark register.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Ways_of_Trademark_Assignment\"><\/span>Different Ways of Trademark Assignment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the Indian Trademark laws, the trademark assignment can be done in&nbsp;4&nbsp;different ways:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/12\/infographics-2.png\" alt=\"Different Ways of Trademark Assignment\" class=\"wp-image-17286\" width=\"590\" height=\"191\"\/><\/figure><\/div>\n\n\n\n<ol><li>Partial&nbsp;Trademark&nbsp;Assignment.<\/li><li>Complete&nbsp;Trademark&nbsp;Assignment.<\/li><li>Trademark Assignment with Goodwill.<\/li><li>Trademark Assignment without Goodwill.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Partial_Trademark_Assignment\"><\/span>Partial Trademark Assignment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Partial trademark assignment is a situation where the ownership of the trademark gets transferred to the 3rd party (assignee) only with regard to some products\/services of the company specified in the Trademark Assignment Agreement between the 2 parties. The main benefit of this kind if an assignment is that the first owner (assignor) of the trademark can sell TM ownership over some products, and keep the remaining rights with him. This way he can confine the trademark transfer to the specified goods, services and\/or both only. <\/p>\n\n\n\n<p>Illustration: Britannia, the owner of bread products may decide to transfer ownership (proprietary) rights only in respect of the sweet-buns product to some 3rd party, and retain the ownership right over the bread products. Such transfer is an example of a Partial TM Assignment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Complete_Trademark_Assignment\"><\/span>Complete Trademark Assignment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Complete <strong><a href=\"https:\/\/swaritadvisors.com\/trademark-assignment\" class=\"text-primary\">Trademark Assignment in India<\/a><\/strong> is a situation where the complete ownership of the trademark gets transferred to the assignee. In such a case, the assignor opts to transfers all the rights to the assignee to earn royalty out of them. In this type of trademark assignment, once the assignor transfers the ownership of a trademark through the agreement to the assignee, he won\u2019t be able to retain any single right on the sold trademark. However, he may be able to earn regular royalty out of the sold trademark, as per the agreement.&nbsp;<\/p>\n\n\n\n<p><strong>Illustration:<\/strong>\u00a0Oppo, the owner of \u201cOPPO-Real\u201d smartphone, transfers complete registered trademark ownership over this type of smartphone to the Realme company. In this type of trademark assignment, Oppo shall not be able to retain proprietary rights over this phone, though it can earn royalty over the same, if in agreement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Trademark_Assignment_with_Goodwill\"><\/span>Trademark Assignment with Goodwill<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In this kind of the trademark assignment, the assignor of the trademark opts to transfer the ownership rights of a trademark along with the goodwill in respect of the brand name associated with the trademark. In such kind of trademark assignment, the TM rights as well as the \u201cbrand value\u201d get transferred to the assignee. The assignee can now reap the complete benefits of the proposed Registered Trademark with regard to the brand, along with its goodwill. <\/p>\n\n\n\n<p>Illustration: BPL, the owner of electronic goods sells his brand to \u201cSanyo\u201d. Now, \u201cSanyo\u201d will be able to get the monetary benefit of BPL\u2019s brand with regard to its electronic goods which it manufactures, along with its goodwill.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Trademark_Assignment_without_Goodwill\"><\/span>Trademark Assignment without Goodwill<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>\u201cAssignment without goodwill\u201d is also known as Gross Assignment. In this kind of the trademark assignment, the assignor of the trademark opts to transfer&nbsp;only&nbsp;his&nbsp;trademark,&nbsp;while&nbsp;restricting&nbsp;the right of the&nbsp;brand name to the assignee.&nbsp;Now, the assignee won\u2019t be able to&nbsp;use such a&nbsp;\u201cbrand\u201d&nbsp;of&nbsp;the product, though he can sell the product and earn a profit. The \u201cbrand\u201d&nbsp;is still in possession of the assignor.&nbsp; Hence,&nbsp;the&nbsp;goodwill attached to&nbsp;this&nbsp;brand&nbsp;associated with&nbsp;the product&nbsp;remains with the assignor only.&nbsp;<\/p>\n\n\n\n<p><strong>Illustration:&nbsp;<\/strong>Suppose,&nbsp;an&nbsp;owner of&nbsp;a&nbsp;trademark \u201c<strong>Redmi<\/strong>\u201d uses&nbsp;this trademark&nbsp;to manufacture&nbsp;and market&nbsp;smartphones.&nbsp;Now, he&nbsp;decides to&nbsp;sell&nbsp;it to&nbsp;some&nbsp;other&nbsp;company without any goodwill.&nbsp;the assignee, in this case,&nbsp;can&nbsp;only&nbsp;use the&nbsp;\u201ctrademark\u201d&nbsp;for the&nbsp;smartphone&nbsp;products and not the brand value associated with them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_trademark_assignment_in_India\"><\/span>Documents required for&nbsp;trademark assignment in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are the main documents required for a trademark assignment: <\/p>\n\n\n\n<ul><li>Trademark assignment agreement between the 2 parties.<\/li><li>Business proof of both assignor &amp; assignee.<\/li><li>NOC from the assignor.<\/li><li>Power of Attorney of the assignor.<\/li><li>Trademark registration certificate of the assignor.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Additional_Validation_Requirements_of_Trademark_Assignment\"><\/span>Additional Validation Requirements of&nbsp;Trademark Assignment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The consent of the assignor for Trademark Assignment is the first requirement, as per his real intention to sell the trademark.<\/p>\n\n\n\n<ul><li>The Trademark Assignment must be in a written agreement. <\/li><li>In every Trademark Assignment, there are 2 identifying and witnessing parties \u2013 Assignor &amp; Assignee. <\/li><li>Complete and valid documentation of both the Assignor and Assignee. <\/li><li>Proper Execution of the valid Trademark Assignment Agreement <\/li><li>Correct identification of the trademarks <\/li><li>Proper consideration by the assignee in lieu of the trademark being owned. <\/li><li>Important: Mention whether or not goodwill also sold along with the transfer of trademark. <\/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>These are the key considerations with regard to the Trademark Assignment. Carefully drafting and executing the Trademark Assignment agreement as per the above requirement, helps in the smooth process of Trademark Assignment, and rules out chances of a dispute.<\/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>The 21st century has ushered in the era of globalization in India. It is beyond any doubt that today, business competition has grown tougher than ever. In such a situation, one of the most valuable assets of a business entity today is the business trademark that safeguards the business brand name. Online Trademark registration has [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":17282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[134],"tags":[1008],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/17280"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=17280"}],"version-history":[{"count":28,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/17280\/revisions"}],"predecessor-version":[{"id":18202,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/17280\/revisions\/18202"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/17282"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=17280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=17280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=17280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}