What is Trademark Assignment?
Trademark rights are transferable through assignment agreements. When a trademark is assigned by an owner to another party, its ownership is conferred upon the other party, either completely (with goodwill) or for a limited number of products or services (without goodwill). It usually involves a one-time payment. Such an agreement (often called an assignment deed) can be signed even if the trademark is unregistered; creative designers, for example, are often asked to assign ownership of the work to the entity that commissioned it. Registered trademarks can also be assigned, of course. In both cases, the assignee must apply to the Registrar within six months.
Advantages of a Trademark Assignment
Unlock Value
Through an assignment agreement, the brand owner is able to unlock the value of the brand, which, until this point, only had value on paper. The assignee, on the other hand, could be significantly better off entering a market with an already well-known brand, rather than building a new one entirely.
Valid Proof
In case of a dispute related to the trademark, legal rights would easily be established through the deed. The Registrar ensures that all the checks are in place by examining the validity of all the clauses in the agreement and publishing the assignment in the Trade Marks Journal.