Introduction
A key difference between trademark assignment and trademark licensing is that the assignment of a registered trademark is a change in ownership. Trademark licensing, on the other hand, is the transfer of certain rights (in a limited way) to a registered trademark while retaining ownership of the trademark. First let's go, "What are trademark assignments and trademark licenses?" Let's take a look at the benefits of trademark licensing and trademark assignment, and then move on to the differences.
What is Trademark Assignment?
According to the Trade Marks Act, 1999, a person entered in the Trademark Register as the owner of a trademark has the power to assign the trademark and to give effective receipt for any consideration for such assignment. Assignment is the complete transfer of ownership from the trademark owner to a third party. Trademark assignment is classified into two types:
- Assignment without Good Faith: The assignor restricts the assignee from using the assigned trademark with the condition that the assignee may not use the assigned trademark regarding goods and services that the assignee already uses.
- Assignment in good Faith: The assignor transfers the rights and value of the trademark associated with the product to the assignor.
What is Trademark License?
A trademark is a valuable business asset that protects your brand. Licensing your trademark can help your business strategy by expanding your brand's reach into new markets and territories. In trademark licensing, the owner of a particular trademark can grant a third party a limited right to use the trademark in exchange for royalties while retaining ownership.
Benefit of Trademark Assignment and Trademark License
Trademark Assignment
- Each trademark assignment is recorded in registry records and serves as evidence of trademark ownership.
- It is faster than registering a new brand name.
- Both parties benefit because the assignee gets a fair price for the brand name while it is known in the market, and the assignee gets the benefit of an already established brand.
Trademark License
- It helps in expanding the reach of the brand.
- It has the potential to improve business life and performance.
- Because of licensing, this mark has become more popular and well known.
- The workload of the company is decreasing.
What is the difference between trademark assignment and trademark licensing?
- A trademark assignment is a transfer of ownership of a trademark registration. While in licensing, the original owner retains ownership and proprietary rights to the trademark, but only a limited number of rights to use the brand are granted to a third party.
- Assignment agreement must be in writing. The license need not be in writing.
- The assignment maybe in whole or in part; A license gives you rights for a specific period of time.
- Assignments are not time-sensitive; Ownership has been transferred. The license is valid only temporarily.
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Summary
Trademark assignment and licensing are both important terms that require careful planning. Brand creation and use are associated with trademark licensing and trademark assignment. All these are available to the owner and are effective management practices.
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