You can buy trademarks and buying a trademark can often be a savvy business move – if you understand the legalities.
By Michael Kondoudis, Small Business Trademark Attorney
This is our EASY guide to buying a trademark.
Buying an existing trademark can be the best and fastest route to trademark success. But buying a trademark requires more than the ability to identify a good deal. The process of buying a trademark can be a bit tricky and requires specific information about trademarks and the U.S. Patent and Trademark Office.
If you need to know about buying a trademark, then read on. This guide is for you.
Let’s jump in!
CONTENTS
I. Can You Buy A Trademark?
Yes, you can buy a trademark. The law treats trademarks like any other physical property; they can be bought, sold, licensed, and even mortgaged! So, trademarks can be bought and sold, like a car, jewelry, and real estate.
The answer to can you buy a trademark is yes!
II. How To Buy A Trademark
There are two options to buy a trademark. You can buy all or part of it.
Option 1. Assignment: A trademark assignment (see below) transfers the entire ownership of a trademark. This could happen while your trademark application is examined at the U.S. Patent and Trademark Office or after your trademark has been registered.
Option 2. Licensing: A trademark license (see below) “buys” a right to use a trademark by temporarily transferring some or all of the rights associated with a trademark. The ownership of the trademark, however, does not change.
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III. What Is A Trademark Assignment?
A trademark assignment is a legal document that transfers the ownership of a trademark from one party to another. This type of transfer can occur when a trademark owner sells their business, merges with another company, or simply wants to transfer the rights to a trademark to another party.
The assignment document must be in writing and signed by both the assignor (the current trademark owner) and the assignee (the new trademark owner). It should include details about the trademark, such as the registration number, the goods or services associated with the mark, and any licensing agreements that may be in place.
Once the trademark assignment is completed and recorded with the appropriate trademark office, the new owner has all the rights and responsibilities associated with the mark, including the right to prevent others from using the mark without permission.
It is important to note that a trademark assignment does not affect any existing contracts or licenses that may be in place for the trademark. These agreements must be reviewed and addressed separately to ensure that the transfer of ownership does not violate any existing legal obligations.
IV. What Is A Trademark License?
A trademark license is a legal agreement between the owner of a trademark (the licensor) and another party (the licensee) that allows the licensee to use the trademark in connection with certain goods or services.
The license will specify the terms and conditions under which the licensee can use the trademark, including the duration of the license, the territory in which the mark can be used, and any quality control standards that must be met.
In exchange for the right to use the trademark, the licensee may pay the licensor a fee or royalties based on sales or other usage metrics.
A trademark license allows the owner of the mark to generate revenue from the licensing of their trademark while still retaining ownership and control over the mark.
It is important to carefully review all terms and conditions of a trademark license agreement before signing to ensure that both parties fully understand their rights and obligations.
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V. Buying a Trademark: Step-by-Step
These are the steps to take when buying a trademark to ensure a successful transaction:
Step 1: Do a trademark search.
Step 2: Negotiate a purchase agreement.
Step 3: Update the trademark registration at the USPTO.
Step 4: Enforce the trademark.
STEP 1: DO A TRADEMARK SEARCH
Before you proceed with buying a trademark, it’s important to conduct a search to make sure the trademark you want to purchase is available. The United States Patent and Trademark Office (USPTO) keeps a record of the ownership of all registered trademarks on its website.
STEP 2: NEGOTIATE A PURCHASE AGREEMENT
Once you’ve confirmed that the trademark is available for purchase, the next step is to negotiate a purchase agreement with the current owner. This agreement will include the terms and conditions of the sale, such as the purchase price, payment terms, transfer of ownership, and any warranties or representations. It’s important to have an experienced attorney review the agreement to ensure that it protects your interests.
STEP 3: UPDATE THE TRADEMARK REGISTRATION AT THE USPTO
After the purchase agreement has been signed and the purchase price has been paid, the current owner will need to transfer ownership of the trademark to you. This involves filing a trademark assignment or license with the USPTO. This document transfers ownership of the trademark from the current owner to you.
STEP 4: ENFORCE THE TRADEMARK
After buying a trademark, it’s important to enforce it by protecting it from infringement or unauthorized use by others. You can do this by monitoring the marketplace for any potential infringement, sending cease and desist letters, and taking legal action if necessary. It’s important to work with an experienced attorney to ensure that your trademark is adequately protected.
VI. Do You Need A Trademark Lawyer To Buy A Trademark?
Most authorities agree that working with a trademark lawyer is a good idea when purchasing a trademark. A trademark lawyer can provide guidance on the legal implications of the purchase.
In addition, a trademark lawyer can provide guidance on negotiating and drafting a purchase agreement that protects your rights and interests and ensures that the transfer of ownership is properly documented and recorded with the U.S. Patent and Trademark Office.
Hiring an attorney to complete the trademark assignment is a wise decision, as there can be a lot of “magic language” or specific legal wording that goes into the agreement. A professional will help ensure the process is done correctly and with your best interests in mind. Overall, working with a trademark lawyer can help ensure that the purchase of a trademark goes smoothly and that your investment is protected.
Do You Want To Buy A Trademark?
If you are serious about buying a trademark, you should consider working with an experienced trademark lawyer.
A trademark lawyer can help you:
- decide whether to assign or license the trademark,
- confirm the seller’s ownership,
- understand what you’re buying,
- prepare the appropriate legal documents to facilitate the proper transfer of rights,
- record your purchase with the U.S. Patent and Trademark Office.
Take the Next Step & Buy That Trademark!
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For more than twenty years, Michael Kondoudis has been the go-to trademarking expert for businesses of all shapes and sizes. Michael is a USPTO-licensed trademark and patent attorney, educator, speaker, and author of the Amazon best-seller: Going From Business Owner to Brand Owner. He is also an authority trusted by national news media on major trademark stories.
Fun Facts: Michael is a member of the Bar of the U.S. Supreme Court and an actual rocket scientist (B.S. Astronomy and Astrophysics, Indiana University 1994).