Over time and with continuous development in almost every industry around the world, trademarks have become one of the fastest and most exclusive Intellectual Property (IPRs) rights in India. A trademark, which identifies and distinguishes business products or services from others, benefits not only products but also consumers. It creates a flavor that gives businesses a target for customers and helps people in buying quality products. Another reason why any trademark is popular among the Intellectual Property industry and several other sectors is its transferability. Indeed, the transfer of commercial rights benefits both – who gives the rights and who takes them. Are you happy to have an understanding of the process of making a profit by transferring trademark rights in India? Read below:
The Indian Trademark Act, 1999 states that by transferring registered trademark rights, it is necessary to choose a trademark award agreement or a trademark license agreement.
(I) Trade Activity
Commercial Real Estate is a way of legally transferring trademark rights assigned to you (the real owner) to the supplier (the person or company interested in acquiring the rights). Legally, it refers to the legal transfer of patents over products and services. Transfers under the trademark assignment are possible in the following ways:
(a) After the full offer of the trademark, the issuer has no control over the product, logo, or anything related to it.
(b) Partial Contribution: A partial provision, which prevents the transfer of trademark rights to certain services or products, is for the benefit of those who do not wish to lose full control of their rights. Gives the distributor the option to share their rights while adding terms and conditions that restrict the control of the other party to the product. It means that a shareholder can only use trademark rights for those items approved by the supplier.
Create a trademark application distribution application, including a trademark transfer rights application. According to the Trademark law, there is no hard and fast rule on who should apply. Therefore, anyone who has been assigned or assigned may apply, but must be in FORMTM-P format and carry the transfer terms and details of both parties.
Apply the prepared application before the registrar. As a delay in applying to the registrar may result in additional payments, be careful to file files within six months of receipt of ownership.
Obtain Registrar’s Permission. Although the transfer of a trademark is subject to the requirements of the supplier and trustee, it is authorized to follow the registrar’s direction before the end of the assignment. Although the expiration date in India is six months, it is extended under the direction of the registrar.
Understand the registrar’s directions and, according to them, advertise the distribution. After that, provide the registrar with copies of both your ads and directions.
Finally, the registrar, after being satisfied with the program, the ads, and all the documentation will allow the transfer of the trademark from the original owner to the new owner. By registering the name of the recipient in the legal record, the registrar ensures that the recipient can now properly use the trademark.
(II) Trading Licenses
Allows the transfer of trademarks while imposing restrictions that prevent the licensee (new owner) from being a full-fledged owner in addition to the rights of the licensee (real owner). While the concept of licensing may seem a bit restrictive, it is beneficial for both licensed and licensed operators. It helps the former to expand its market and increase the number of buyers and the latter enjoys the brands obtained by the trademark.
Of course, registering a license agreement is not required, however, the parties must do so to enjoy the expected benefits without facing any obstacles. The process for registering a trademark license agreement is the same as registering a trademark agreement. So if you want to submit a trademark transfer using a license, there is a need to have the app downloaded by completing it before the registrar. If you are a license holder and do not want to create an application, you can ask the licensee to do so as the law states that either of these two can create an application that must be a TM-28 form format. Once satisfied with the application, documents, etc., the registrar will allow both of you to exercise the trademark rights transferred in accordance with the terms of the license agreement.
The concept of trademark transfer is a profitable strategy for both – the right holders and the right holder. So if you want to join the race and make a profit this way, the guide given above will definitely help you. However, before proceeding, it is recommended that you have an in-depth understanding of all the facts related to this IPR, whether it relates to a simple filing of a commercial application or something else.