Assignment of a trademark arises when the ownership rights of such trademark or brand, is transferred from one owner/party to another person. Such an assignment of a trademark can be with or without the goodwill of the business.
In the case of a registered Trademark, such assignment is compulsory to be recorded in the Register of trade marks. It can be transferred through deeds, agreements etc between two persons.
It usually involves a one-time payment. Such an agreement (often called an assignment deed).In both cases i.e. in registered or unregistered trademark assignment, the assignee must apply to the Registrar within 6 months.
In this, the owner of the trademark transfers all the rights and privileges with respect to the trademark, with the transfer of the rights such as the right to further transfer, earning royalties, etc., to another person or other entity.
In this type assignment, the transfer of ownership is limited to specific product or service only.The owner may retain the right to further transfer, to earn royalties etc.
Due to assignment agreement, the brand owner is able to unlock the value of the brand, which until the point of transfer was only a value on paper.
Rather than forming its new brand it would take over or enter a market with an already well-known brand to save its time as well for fast acquiring the ready market and also eliminate competition.
If any dispute arises in relation to the trademark, the legality of using such a trademark would easily be established through the agreement/deed. The Registrar make sure that all the checks are in place by examining the validity of all the clauses in the agreement.
For trademark assignment, the documents required for processing are communicated to the parties. The deed will be drafted accordingly and sent to both parties for their signing purpose and also notarize the same subsequently.
The Registrar will first scrutinize the deed or agreement to check that no misperception with regards to the assignment of the trademark. Once the Registrar is satisfied with the fairness of all the clauses of the agreement, the assignment will be published in the Trade Marks Journal. The Registrar will consider the agreement and on seeing the response to the publication done and accordingly allow or disallow the assignment entry in the Trademark Registry.