Trademarks are important to businesses because they foster customer loyalty and memorability. They envelop names, logos, or particular images that separate an organization’s contributions from those of others in a particular industry. Trademark assignment is the most common way of moving brand name ownership starting with one entity then onto the next.
Kinds of Trademark Assignment:
There are four methods available for assigning a trademark. They’re:
- Partial Assignment:
-
- The new owner receives only a part of the rights, title, and interest in the trademark.
- The current owner retains some rights, like the authority to use it in particular markets or with specific goods/services.
- Complete Assignment:
-
- All rights, titles, and interests in the trademark are transferred from the current owner to the new one.
- The new owner becomes the sole owner, assuming all associated rights and duties of the trademark.
- The assignment with goodwill:
-
- Both the business associated with the trademark and its ownership rights are transferred.
- This occurs when a business is sold, and the new owner wishes to obtain the related trademark in addition to the business.
- The assignment without goodwill:
-
- Only the ownership rights of the trademark are transferred.
- Business or goodwill associated with the trademark is not included in the transfer.
- Employed when the trademark owner wishes to sell the trademark separately from the business.
Why is trademark Assignment Important?
- Financial gain for the assignor:
-
- Selling the brand name can generate revenue for the business owner.
- The funds can be applied to retirement or other companies.
- Asset acquisition for the assignee:
-
- Acquiring the trademark provides a valuable asset for establishing and growing the business.
- Increasing efficiency in business processes:
-
- Facilitates brand consolidations, strengthening identities and marketing effectiveness.
- Resolves legal issues related to trademark ownership, saving time and money.
- Safeguarding brand value:
-
- Ensures the trademark is used according to the original brand vision.
- Gives reassurance about the brand reputation and usage.
Requirements of the Trademark Assignment Deed:
-
- The assignment deed must only be submitted in writing.
- The trademark that is being issued should be identified.
- The parties must both complete the assignment deed.
- The purpose of the assignment deed should be money motive.
- Whether the assignment is with or without goodwill should be included in the assignment deed.
- In accordance with the Indian Stamp Act, the assignment deed must be stamped.
Applying Trademark Application:
Here’s the process of applying for a trademark online in India
- Create a profile with the Trademark Registrar:
-
- Register on the Trademark Registrar’s website.
- Provide necessary information:
-
- Identify goods and services.
- Provide company name and type of mark filing.
- Submit the required documents:
-
- Drawing of the proposed mark.
- Affidavit of use or intent to use the mark in commerce.
- Proof of ownership of the mark.
- Pay filing fee:
-
- Submit the required fee for trademark application processing.
- Send in an authentic, verified signature:
-
- Authenticate the application with an authenticated copy of the signature.
- Application review:
-
- The application is sent to an examiner for review.
- Examiner’s decision:
-
- The examiner makes a decision about, to allow the mark to be put into use.
- Approval and registration:
-
- If approved, receive a registration certificate with the symbol ® and identifying information.
Fees and Payments:
Here’s the breakdown of the fees necessary for applying for a registered trademark online in India:
- Filing fees for non-startups, small enterprises, or individuals:
- ₹9,000 for electronic filing.
- ₹10,000 for filing in person with the Trademark Registrar.
- Filing fees for individuals, small enterprises, or startups:
- ₹4,500 for e-filing.
- ₹5,000 for filing by hand.
- Stamp duty:
- 5% of the application or assignment value, as per the Stamp Duty Act, is payable per trademark application or assignment submitted.
Forms of Identification:
Here are the options for submitting forms of identification when applying for a registered trademark:
- Filing affidavit option:
- Submit a filing affidavit signed by the owner or owner’s representative.
- The affidavit must be scrutinised by a competent individual.
- Include brand logo, description, and date of first use.
- List names and addresses of all owners or rights holders.
- Ownership documents option:
- Submit an application containing documents establishing brand ownership.
- Include a copy of the registration of the trademark certificate or a statement from the entity claiming ownership.
- Provide a statement confirming the applicant’s consent to use the mark.
- Provide contact information for authorised delegates.
- Extracts from earlier submission documents option:
- Submit an application containing extracts from earlier submission documents.
- Include a statement confirming the copying of copyrighted material without permission.
What does the “Stamp Duty” entail?
Here’s an overview of stamp duty and its significance:
- Government-imposed charge:
- Stamp duty is imposed by state governments.
- It applies to different sorts of business endeavours, like real estate transactions, insurance policy administration, and financial transactions.
- Legal requirement:
- Mandated by the Indian Stamp Act of 1899 Section 3.
- Ensures legal completion and validity of documents.
- The revenue source for the government:
- State governments collect revenue from stamp duty.
- Rates are determined based on document type and transaction amount.
What is Stamp Duty for trademark Assignment?
Here’s a summary of stamp duty for trademark assignment, including relevant rates:
- Stamp duty requirement:
- Stamp duty is payable on a deed of IP rights assignment, except for copyright assignments, which are exempt.
- Imposed by state law, governed by the Indian Stamp Act of 1899.
- Legal enforceability:
- For trademark transfer deeds and related paperwork to be legally enforceable in India, they must be stamped.
- Determination of stamp duty:
- The amount of stamp duty for trademark assignment is based on the assigned trademark’s market value.
- State governments determine market value, which varies from state to state.
- Form TM-9:
- Utilized to initiate registration requests for an individual’s title following an assignment.
- Stamp duty rates (examples):
- Delhi: 3%
- Mumbai (Maharashtra): 3%
- Kolkata (West Bengal): 5%
- Ahmedabad (Gujarat): 5%
The Key role of Stamp Duty in the context of trademark assignment:
Here’s the key role of Stamp Duty in trademark assignment:
- Legal compliance assurance:
- Legal documents, including trademark transfer deeds, must be duly stamped in accordance with the Indian Stamp Act of 1899.
- Non-payment of stamp duty can render the deed invalid, unenforceable, and, or not valid in the court.
- Revenue generation for the government:
- Stamp duty acts as a source of revenue for the government.
- The generated revenue is contributing to funding various public benefits initiatives, like social welfare, education, and infrastructure development.
Conclusion:
All in all, consideration should be given to stamp duty while assigning a trademark. To ensure a consistent and hassle-free assignment of trademarks, it is advisable that you get the advice of a lawyer who can direct you through the stamp duty payment method and assist you with consenting to whatever legal criteria are still there. To ensure the viability of a trademark assignment in India, it is important to fathom the stamp duty guidelines and fulfil the associated requirements.
FAQs
- Could you explain the concept of a trademark assignment?
A trademark assignment, otherwise called a trademark transfer, alludes to the most common way of transferring the ownership of a brand, starting with one party and then onto the next. It includes the total transfer, with all rights, title, and interest in the brand.
- Can a trademark assignment be partial?
Yes, it can be partial. It is possible to transfer only a part of the rights, title, and interest in a brand name as long as both parties agree and the terms are clearly stated in the assignment agreement.
- Why Notarising a Trademark Assignment is Important?
The assignee benefits from the assignment being notarised. In order to prove that there’s not a possibility of deliberate document fraud pertaining to the assignment, notarising is also vital. The assignment consequently, it must be notarised with the appropriate stamp duty. Moreover, the assignor needs to give a notarised affidavit verifying the way that the brand name is really theirs.
- Is trademark assignment possible before registration?
Yes, you can do it by submitting the TM – M form with the prescribed fees.
- What if the registry raises a query on an assignment?
If the registry issues a notice on your request for an assignment, you can reply to it by submitting a letter in the prescribed format.