Trademark Transfer

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What is Trademark Ownership Transfer?

When trademark ownership is transferred, this is referred to as an assignment. When a trademark registration is transferred to a new owner, a trademark assignment is the official record of the transaction with the Intellectual Property Office of the designated country. The specifics of the transfer, including the rights being assigned, the payment arrangements, and any guarantees and representations from the current owner of the mark, will be spelled out in this agreement. This agreement is legal and binding and requires the signature of both parties.

There could be a variety of reasons for the transfer of ownership such as selling the company, changing the last name, etc.

What is the importance of trademark transfer?

Not only are trademark assignments crucial when you sell your intellectual property to a third party, but they are also crucial when your company goes through a reorganization.

Importantly, transferring the rights to your business gives it the legal authority to produce, employ, market, and sell the items and services covered by the mark. Without assigning the rights, you would need to license the rights, which would involve far more labor than a straightforward assignment of rights. Additionally, by transferring your trademark rights to your business, you raise the asset price of the entity, increasing its appeal to lenders and investors alike.

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