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Trademark assignments: Transferring ownership or changing your name

Assignment Center

Trademark owners may need to transfer ownership or change the name on their application or registration. This could happen while your trademark application is pending or after your trademark has registered. Use Assignment Center to transfer ownership or to request a change in name. See our how-to guide for trademarks on using Assignment Center.

Here are examples of common reasons:

• I’ve sold my business and need to transfer ownership of the trademark. This is a transfer of ownership called an assignment.
• I got married just after I filed my application and my last name changed.  This is a name change of the owner. 

There are fees associated with recording assignments, name changes, and other ownership-type changes with the USPTO. See the Trademark Services Fee Code “8521” on the current fee schedule to find the specific fee amount.

See the correcting the owner name page to learn if you can correct an error in the owner's name that does not require an assignment.

Limitations based on filing basis

Intent-to-use section 1(b) applications.

If you’re transferring ownership to a business successor for the goods or services listed in your identification, you can file your assignment at any time. In all other cases, you must wait until after you file an  Amendment to Allege Use or a Statement of Use before you file your assignment. For more information, see the Trademark Manual of Examining Procedure (TMEP)  section 501.01(a) . 

Madrid Protocol section 66(a) U.S. applications and registrations

All ownership changes involving international registrations must be filed with the International Bureau of the World Intellectual Property Organization (WIPO). Follow the guidance on the WIPO website about changing ownership or changing an owner’s or holder’s name. See the  TMEP section 502.02(b) for more information.

How to update ownership information

Submit a request to transfer ownership or change the name.

Use Assignment Center to submit your request to transfer ownership or change the owner name for your U.S. application or registration. You will need to fill out a cover sheet with certain information and may also need to upload supporting documents, depending on the type of change. Also, be prepared to pay the Trademark Services Fee Code “8521” on the current fee schedule .

You'll receive a notice of recordation or non-recordation

In about seven days, look for your notice. If you don’t receive one, contact the Assignment Recordation Branch . The Notice of Non-Recordation will explain the reason your request to record was denied. Here are four common reasons: 

• A critical piece of information was omitted from the cover sheet. 
• The document is illegible or not scannable. 
• The information on the cover sheet and the supporting document do not match. 
• The assignment was not transferred with the good will of the business. 

USPTO trademark database will be automatically updated after recordation

Once recorded, the trademark database should reflect the new owner information or name change. Check the Trademark Status and Document Retrieval (TSDR) system to see if the owner information has been updated. See below for information about what to do if the database isn’t updated.

What to do if the USPTO trademark database isn’t updated

In some cases, the USPTO will not automatically update the trademark database to show the change in ownership or name. This could happen when the execution date conflicts with a previously recorded document or multiple assignments have the same execution date on the same date. For more information, see TMEP section 504.01 . 

If the trademark database wasn’t updated and your trademark has not published in the Trademark Official Gazette yet, and you need to respond to an outstanding USPTO letter or office action, use the appropriate Response form to request the update of the owner information. If you don’t have a response due, use the Voluntary Amendment form . To do this,

• Answer “yes” to the question at the beginning of the form that asks if you need to change the owner’s name or entity information.
• Enter the new name in the “Owner” field in the “Owner Information” section of the form.

Your request to update the owner information will be reviewed by a USPTO employee and entered, if appropriate. To request the owner information be updated manually when your trademark has already published or registered, use the appropriate form listed in the “Checking the USPTO trademark database for assignment/name change” section below.

If you made an error in your Assignment Center cover sheet 

Immediately call the Assignment Recordation Branch to request possible suspension of the recordation. The recordation may be suspended for two days. You’ll be instructed to email the specialist you speak with requesting the cancellation and that a refund be issued. However, if the assignment has already been recorded, your request will be denied. You must then follow the procedures outlined in the TMEP section 503.06 to make any corrections to the assignment.

We strongly recommend filing these changes online using Assignment Center , which will record your changes in less than a week. It is possible to request these changes by paper using the Recordation Form Cover Sheet and mailing the cover sheet, any supporting documentation, and fee to: 

Mail Stop Assignment Recordation Branch Director of the U.S. Patent and Trademark Office PO Box 1450 Alexandria, VA 22313-1450

If you file by paper, we will record your changes within 20 days of filing. 

Checking the USPTO trademark database for assignment /name change

After you receive a Notice of Recordation, wait one week before checking to see if the owner information has been updated in your application or registration in the trademark database. Follow these instructions:

• Go to TSDR .
• Enter the application serial number or registration number.
• Select the “Status” button.
• Scroll down to the “Current Owner(s) Information” section. 
• Check to see that your owner information was updated correctly.

If the owner information hasn’t yet been updated, go to the “Prosecution History” section in TSDR to see the status of the assignment or name change. It can take up to seven days to see an entry in the Prosecution History regarding the assignment. If an entry shows "Ownership records not automatically updated," you will need to submit a TEAS form making the owner or name change manually.

The form you need depends on where your application is in the process.

• If your trademark has not published in the Trademark Official Gazette yet, use the TEAS Response to Examining Attorney Office Action form or the TEAS Voluntary Amendment form . If you are responding to an outstanding USPTO Office action regarding your application or registration, use the TEAS response form.
• If your trademark has published but hasn't registered, use the TEAS Post-Publication Amendment form . 
• If your trademark is registered , use the TEAS Section 7 Request form . A fee is required.

Updating your correspondence information

If your ownership information is automatically updated in TSDR , you must ensure your correspondence information, including any attorney information, is also updated. To update your correspondence or attorney information, use the TEAS Change of Address or Representation (CAR) form . This form cannot be used to change the owner name.

For further information, see TMEP Chapter 500 and look at the frequently asked questions .

Additional information about this page

Deed of Assignment (for Intellectual Property)

In the realm of intellectual property, a Deed of Assignment is a formal legal document used to transfer all rights, title, and interest in intellectual property from the assignor (original owner) to the assignee (new owner). This is crucial for the correct transfer of patents, copyrights, trademarks, and other IP rights. The deed typically requires specific legal formalities, sometimes notarization, to ensure it is legally enforceable.

To be legally effective a deed of assignment must contain:

• Title of the Document : It should clearly be labeled as a "Deed of Assignment" to identify the nature of the document.
• Date : The date on which the deed is executed should be clearly mentioned.
• Parties Involved : Full names and addresses of both the assignor (the party transferring the rights) and the assignee (the party receiving the rights). This identifies the parties to the agreement.
• Recitals : This section provides the background of the transaction. It typically includes details about the ownership of the assignor and the intention behind the assignment.
• Definition and Interpretation : Any terms used within the deed that have specific meanings should be clearly defined in this section.
• Description of the Property or Rights : A detailed description of the property or rights being assigned. For intellectual property, this would include details like patent numbers, trademark registrations , or descriptions of the copyrighted material.
• Terms of Assignment : This should include the extent of the rights being transferred, any conditions or limitations on the assignment, and any obligations the assignor or assignee must fulfill as part of the agreement.
• Warranties and Representations : The assignor typically makes certain warranties regarding their ownership of the property and the absence of encumbrances or third-party claims against it.
• Governing Law : The deed should specify which jurisdiction's laws govern the interpretation and enforcement of the agreement.
• Execution and Witnesses : The deed must be signed by both parties, and depending on jurisdictional requirements, it may also need to be witnessed and possibly notarized.
• Schedules or Annexures : If there are detailed lists or descriptions (like a list of patent numbers or property descriptions), these are often attached as schedules to the main body of the deed.

Letter of Assignment (for Trademarks and Patents)

This is a less formal document compared to the Deed of Assignment and is often used to record the assignment of rights or licensing of intellectual property on a temporary or limited basis. While it can outline the terms of the assignment, it may not be sufficient for the full transfer of legal title of IP rights. It's more commonly used in situations like assigning the rights to use a copyrighted work or a trademark license.

For example, company X allows company Y to use their trademark for specific products in a specific country for a specific period.  

At the same time, company X can use a Letter of Assignment to transfer a trademark to someone. In this case, it will be similar to the Deed of Assignment. 

Intellectual Property Sales Agreement

An IP Sales Agreement is a detailed contract that stipulates the terms and conditions of the sale of intellectual property. It covers aspects such as the specific rights being sold, payment terms, warranties regarding the ownership and validity of the IP, and any limitations or conditions on the use of the IP. This document is essential in transactions involving the sale of IP assets.

However, clients usually prefer to keep this document confidential and prepare special deeds of assignment or letter of assignment for different countries.

IP Transfer Declaration

In the context of intellectual property, a Declaration is often used to assert ownership or the originality of an IP asset. For example, inventors may use declarations in patent applications to declare their invention is original, or authors may use it to assert copyright ownership. It's a formal statement, sometimes required by IP offices or courts.

When assigning a trademark, the Declaration can be a valid document to function as a proof of the transfer. For example, a director of company X declares that the company had sold its Intellectual Property to company Y. 

Merger Document

When companies or entities with significant IP assets merge, an IP Merger Document is used. This document outlines how the intellectual property owned by the merging entities will be combined or managed. It includes details about the transfer, integration, or handling of patents, copyrights, trademarks, and any other intellectual property affected by the merger.

In all these cases, the precise drafting of documents is critical to ensure that IP rights are adequately protected and transferred. Legal advice is often necessary to navigate the complexities of intellectual property laws.

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Trademark Assignment

A Trademark Assignment is a document used when one person owns a registered trademark (like a brand name or logo ) and wishes to transfer the ownership of that trademark to another person. Written Trademark Assignments are important, as it's best for both parties to have a memorialized record of the assignment.

Trademark Assignments allow the easy transfer of the mark. They contain all the information needed to record the assignment with the United States Patent Office (USPTO) . Recordation with the USPTO is necessary for all registered trademarks that are being transferred, and it is a good way to ensure everything flows smoothly with the assignment.

This is different than a Licensing Agreement , as here, the entirety of the mark is being transferred to a new party. In a Licensing Agreement, the mark still belongs to the original owner, but the other party pays royalties for permission to use it.

This is also slightly different than an Intellectual Property Release . Although that form could be used for a trademark, generally it is used for copyrighted material, like works of art or pieces of music. In that case, payment is not made and instead, the copyrighted works are simply "released," or given, to another party.

This document can also be distinguished from an Intellectual Property Permission Letter , as there, one party is writing to request permission to use the intellectual property of another. A Licensing Agreement or Intellectual Property Release or even Trademark Assignment could come after the Intellectual Property Permission Letter, but that is not a formal legal document, and is instead, a template for a letter to be used to have the initial conversation about intellectual property use.

How to use this document

This document can be used to transfer the ownership of an existing trademark or when an individual would like an existing trademark transferred to them, as long as the owner agrees. It should be used when both parties understand that the trademark will be completely assigned (in other words, this is not a license, as noted above, and no royalties will be due after the assignment) and wish to create a record of their agreement.

This document will allow the parties to fill in details of the mark to be transferred, as well as ensure that everything needed for recordation with the USPTO is present. Either party - either the person assigning the trademark or the person receiving the trademark - can fill out this form.

Once the form is complete, the parties can undertake the following steps:

1) Sign and execute the form in front of a notary (both parties)

2) Have the notarization completed

3) Record the Trademark Assignment with the United States Patent and Trademark Office

Applicable law

Trademark Assignments are related to the trademark law of the United States, which is covered by a federal statute called the Lanham Act. The section of the Lanham Act specifically referring to assignments is 15 U.S.C. § 1060(a).

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Trademark Assignment: What You Need to Know Before Transferring Ownership

Trademark assignment is the process of transferring ownership of a trademark. It is a significant legal process that requires careful consideration and adherence to relevant laws and regulations. Failing to understand the intricacies of trademark assignment can lead to legal disputes, loss of rights, and financial implications for both parties involved. Therefore, it is essential for individuals and businesses involved in trademark transactions to have a clear understanding of the process and its implications.

Understanding Trademark Assignment

Trademark assignment refers to the formal transfer of ownership rights of a trademark (Registered or Pending)from one individual or entity to another. It involves the conveyance of all associated rights, including the right to use, licence, or sell the trademark, to the assignee.

Importance of Proper Documentation

Proper documentation is essential in the process of trademark assignment to ensure clarity, legality, and enforceability of the transfer. Documentation typically includes a written agreement outlining the terms and conditions of the assignment, as well as any associated considerations or payments. Without proper documentation, the assignment may be deemed invalid or unenforceable, leading to potential disputes or challenges in the future.

Types of Trademark Assignment

Trademark assignment can take several forms, depending on the nature and extent of the transfer:

• Complete Assignment : In a complete assignment, the assignor transfers all rights and interests in the trademark (Registered or Pending) to the assignee. This includes the right to use the trademark for any purpose, as well as the right to sublicense or transfer the trademark to third parties.
• Partial Assignment : A partial assignment involves the transfer of only specific rights or interests in the trademark (Registered or Pending). This may include limiting the assignment to certain products, services, or geographical regions, while retaining ownership rights over other rights or interests of the trademark.
• Assignment with Goodwill : When a trademark is assigned with goodwill of the business, the assignor transfers not only the rights to the trademark but also the associated value and reputation of the trademark. This allows the assignee to benefit from the established goodwill and reputation of the trademark.
• Assignment without Goodwill : In contrast, an assignment without goodwill involves the transfer of only the rights to the trademark, without any associated value or reputation. .

Prerequisites for Trademark Assignment

Before proceeding with a trademark assignment, certain prerequisites must be met to ensure the validity and enforceability of the transfer.

Requirement of a Written Agreement

A trademark assignment must be documented in writing to provide clarity and evidence of the transfer. This written agreement, often referred to as a trademark assignment agreement, outlines the terms and conditions of the transfer, including the rights and obligations of both the assignor and the assignee. Without a written agreement, the assignment may be subject to disputes or challenges regarding the terms of the transfer.

Identification of Parties Involved

The parties involved in the trademark assignment must be clearly identified in the agreement. The assignor, who is the current owner of the trademark, and the assignee, who is the intended recipient of the trademark rights, must be accurately identified to establish their respective roles and responsibilities in the transfer process.

Consent from the Assignor

Consent from the assignor is essential for a valid trademark assignment. The assignor must willingly agree to transfer the ownership rights of the trademark to the assignee. Without the assignor’s consent, the assignment would be considered invalid and unenforceable. Therefore, obtaining explicit consent from the assignor is a fundamental requirement in the trademark assignment process.

Consideration

Consideration refers to the value exchanged between the parties as part of the trademark assignment in the form monetary consideration.

Trademark Assignment Agreement

A well-drafted trademark assignment agreement is essential to ensure clarity, enforceability, and protection of rights for both the assignor and the assignee. It helps to avoid misunderstandings or disputes between the parties involved and provides a legal framework for the transfer of trademark rights.

The trademark assignment agreement must be executed by both parties in accordance with legal formalities. It should be signed by the assignor and the assignee, with their signatures witnessed by independent witnesses. The agreement will be stamped based on the consideration amount of the assignment. Notary may also be required.

Process of Trademark Assignment

The process of trademark assignment involves several steps that must be followed meticulously to ensure the legal transfer of ownership.

Filing of Trademark Assignment Application (Form TM-P)

The first step in the process is to file a trademark assignment application with the appropriate authority, usually the Registrar of trademarks. This application is typically submitted on Form TM-P, formally notifies the registrar of the intention to transfer ownership of the trademark. The application must contain all necessary details, including information about the assignor, assignee, and the trademarks being transferred along with a copy of the assignment deed..

Advertisement of the Assignment as Directed by the Registrar

Upon receipt of the trademark assignment application, the registrar may direct the parties to advertise the assignment in a specified manner and within a specified period.This is only in case of partial assignment or in the case of assignment without goodwill This advertisement serves to notify the public of the impending transfer of ownership and provides an opportunity for any interested parties to raise objections or concerns regarding the assignment.

Registrar’s Registration of the Assignee as the New Proprietor

Once the advertisement requirements have been met and any objections addressed, the Rregistrar will proceed to register the assignee as the new proprietor of the trademark/s. This registration formally recognises the transfer of ownership and updates the official records accordingly. The assignee will now have full legal rights and responsibilities associated with the ownership of the trademark/s.

Documents Required for Trademark Assignment

Several essential documents must be prepared and submitted during the process of trademark assignment to ensure the legality and validity of the transfer.

Restrictions on Trademark Assignment

Certain restrictions are in place to ensure fair use and prevent confusion or deception among consumers.

• Parallel use restriction: This restriction prohibits the assignor from assigning a trademark in a manner that creates exclusive rights in different individuals or entities for the same or similar products or services. Essentially, it aims to prevent multiple parties from using the same trademark in a way that could lead to consumer confusion. This is applicable in the case of partial assignment.
• Multiple territorial use restriction: This restriction prevents the assignor from assigning a trademark in a manner that creates exclusive rights in different regions or territories for the same or similar products or services. It aims to maintain consistency and clarity in the use of trademarks within specific geographical areas.This is applicable in the case of partial assignment.

Benefits of Trademark Assignment

Trademark assignment offers several advantages for both the assignor and the assignee, making it a valuable tool for transferring ownership of intellectual property rights.

Monetisation of Brand Value for the Assignor

By transferring ownership rights to another party, the assignor can receive financial compensation in exchange for granting the assignee the exclusive rights to use the trademark. This can be particularly beneficial for businesses looking to capitalise on the value they have built through branding efforts over time.

Acquisition of Established Brand Rights for the Assignee

For the assignee, trademark assignment provides the opportunity to acquire the established rights and recognition associated with a well-known brand. Instead of building a brand from scratch, the assignee gains immediate access to the market presence, reputation, and consumer trust that the trademark represents. This can expedite market entry and enhance the assignee’s competitive position in their industry.

Support for Business Expansion

For the assignor, transferring ownership of underutilised trademarks or brands can free up resources and focus on core business activities. Meanwhile, the assignee can leverage the acquired trademarks to diversify their product offerings, enter new markets, or strengthen their existing market position, driving growth and revenue opportunities.

Establishment of Legal Rights in Case of Disputes

By formalising the transfer of trademark ownership through a legally binding agreement, both the assignor and the assignee establish clear legal rights and obligations. In the event of disputes or challenges to the ownership of the trademark, the assignment agreement serves as evidence of the parties’ intentions and commitments. This can streamline dispute resolution processes and provide legal recourse to protect the interests of both parties.

Frequently Asked Questions

1. What is the full assignment of a trademark?

The full assignment of a trademark refers to the transfer of all rights, interests, and ownership of the trademark from one party (the assignor) to another party (the assignee). In a full assignment, the assignor relinquishes all control and benefits associated with the trademark, including the right to use, licence, or sell the mark. This comprehensive transfer ensures that the assignee gains exclusive ownership and control over the trademark for all relevant goods or services.

2. What is licence and assignment of trademark?

A licence and assignment of a trademark involve two distinct legal arrangements. A licence grants permission to a third party (the licensee) to use the trademark under specified terms and conditions, while the ownership and control of the trademark remain with the licensor. In contrast, an assignment transfers the entire ownership rights of the trademark from one party to another. While a licence allows for the authorised use of the trademark, an assignment results in the complete transfer of ownership, including all associated rights and benefits.

3. What is the difference between transmission and assignment?

Transmission and assignment are both methods of transferring ownership of a trademark, but they differ in scope and application. Transmission refers to the automatic transfer of trademark rights due to changes in legal status, such as inheritance, bankruptcy, or corporate restructuring. In contrast, assignment is a deliberate and voluntary act where the current owner (assignor) transfers ownership rights to another party (assignee) through a written agreement. While transmission occurs by operation of law, assignment requires the explicit consent and agreement of the parties involved.

4. What is consideration for trademark assignment?

Consideration for trademark assignment refers to the value exchanged between the assignor and the assignee as part of the transfer agreement which is in monetary form. It serves as the legal basis for the contract and ensures that both parties receive something of value in exchange for the transfer of trademark rights..

In conclusion, understanding trademark assignment is crucial before transferring ownership. It’s essential to ensure proper documentation, consent, and consideration to facilitate a smooth transfer. Seeking professional assistance from legal experts can help navigate the complexities of trademark assignment and ensure compliance with legal requirements.

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Trademark Assignment: All You Need to Know

This article on ‘Assignment of Trademarks: All you need to know’ was written by Shashanki Kaushik , an intern at Legal Upanishad.

Introduction

This article provides a comprehensive overview of the assignment of trademarks in India, focusing on the legal framework, relevant legislation, landmark judgements, and practical considerations. Understanding the nuances of trademark assignment is vital for businesses seeking to protect their intellectual property rights. In India, this process is governed by various laws, including the Trade Marks Act of 1999 and the Trade Marks Rules of 2017. This article explores the intricacies of trademark assignment, touching upon key aspects, legal provisions, and notable case law.

Assignment of Trademarks : Concept and Laws

Trade Marks Act, 1999, Section 2(1)(b): Definition of Assignment: The Act defines ‘assignment’ as the transfer of ownership, either with or without the goodwill of the business.

Section 37: Requirements for Assignment: This section outlines the essential requirements for a valid trademark assignment, including the need for the assignment to be in writing and signed by both parties.

Trade Marks Rules, 2017, Rule 68: Application for Assignment: Rule 68 specifies the procedure for filing an application for the assignment of trademarks, along with the prescribed form and fees.

Types of Trademark Assignment

• Complete Assignment- A complete assignment involves the transfer of both the trademark and the associated goodwill.
• Partial Assignment- Partial assignment entails the transfer of the trademark without the goodwill of the business.
• Assignment with Goodwill- Assignments that include goodwill are more common and ensure the new owner can benefit from the established reputation and customer base.
• Assignment without Goodwill- Assigning a trademark without goodwill is less common and may occur when the assignor intends to retain the business’s reputation.

Legal Procedures for Trademark Assignment

• Application to Registrar: The assignor and assignee must file a joint application with the Registrar of Trademarks for the assignment’s approval.
• Advertisement and Opposition: After acceptance, the Registrar will advertise the assignment application. Interested parties have the opportunity to oppose the assignment within the stipulated period.
• Issuance of Certificate: Upon successful completion of the assignment process, the Registrar issues a certificate, signifying the new owner’s rights over the trademark.

Landmark Judgments

• Ravi Kamal Bali v. Kala Tech and Entertainment (P) Ltd.

This case reaffirmed that an assignment without goodwill does not affect the validity of the assignment.

• Indian Performing Right Society Ltd. v. Dalia

In this judgement, it was held that the assignee could enforce trademark rights against third parties, even without registering the assignment.

Practical Considerations

• Due Diligence : Both parties should conduct thorough due diligence before entering into an assignment agreement, ensuring the trademark’s validity and reputation.
• Clear Agreement : The assignment agreement must be clear and comprehensive, specifying the terms, conditions, and considerations involved.
• Record Keeping : Maintaining accurate records of the assignment is crucial for future reference and potential disputes.
• Post-Assignment Compliance : The assignee must ensure compliance with ongoing trademark maintenance , including renewals and protection against infringement.

Tax Implications of Trademark Assignment

Trademark assignment can have significant tax implications for both parties involved. The consideration received or paid for the assignment may be subject to capital gains tax or other taxes, depending on the specific circumstances and applicable tax laws. It is crucial for both parties to seek professional tax advice to ensure compliance with tax regulations.

Licensing vs. Assignment

While trademark assignment involves the complete transfer of ownership, licensing allows the owner (licensor) to grant permission to another party (licensee) to use the trademark under specific terms and conditions. Licensing gives more control to the trademark owner and allows for greater flexibility in terms of use, territory, and duration. Assignment, on the other hand, transfers all rights and responsibilities to the assignee, including the duty to protect and enforce the trademark.

Franchising and Trademark Assignment

Franchising often involves the assignment of trademarks to franchisees. This allows franchisees to operate under a recognized brand, benefiting from the established reputation and marketing efforts of the franchisor. Franchise agreements typically include detailed provisions regarding trademark usage, quality control, and territorial rights. Careful consideration of trademark assignment is essential in the franchising context to maintain brand consistency and protect the trademark’s value.

International Enforcement of Trademark Assignment

Enforcing trademark assignments across international borders can be challenging due to varying legal systems and regulations. Businesses engaging in cross-border trademark assignments should consider international treaties such as the Madrid Protocol and the Paris Convention, which provide mechanisms for protecting trademarks in multiple countries. Additionally, legal counsel with expertise in international trademark law is essential to navigate the complexities of enforcing trademark assignments globally.

International Perspective

Paris Convention for the Protection of Industrial Property (1883): India, as a signatory to the Paris Convention, recognizes the principle of national treatment for foreign trademark owners, providing a basis for international trademark assignment.

TRIPS Agreement (1994): The Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, part of the World Trade Organization (WTO), sets minimum standards for the protection of trademarks and includes provisions related to trademark assignment.

International Trademark Assignment

Madrid Protocol : Under the Madrid Protocol, businesses can efficiently protect their trademarks in multiple countries by filing a single international application. India became a member of the Madrid Protocol in 2013, facilitating international trademark assignments for Indian businesses.

International Trademark Assignment Case Study: Coca-Cola : Coca-Cola’s global presence is a prime example of an effective international trademark assignment. Through careful planning and legal strategies, the company has maintained consistent branding worldwide.

Trademark assignment is a vital aspect of intellectual property management in India. It provides opportunities for businesses to monetize their assets or expand their market presence. However, navigating the legal framework, complying with procedures, and safeguarding interests require careful consideration. As demonstrated through relevant legislation and case law, understanding the intricacies of trademark assignment is indispensable for both assignors and assignees in India.

List of References

• Mayashree Acharaya, ‘Assignment of Trademark’, CLear Tax, 22 February 2022, available at: https://cleartax.in/s/ass i gnment-of-trademark
• ‘Assignment and Transmission of Rights’, Selvam & Selvam, available at: https://selvams.com/kb/in/trademarks/assignment/
• ‘Trademark Assignment’, Corpbiz, available at: https://corpbiz.io/trademark-assignment

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Trademark Assignment: Best Practices

A thorough trademark assignment agreement is fundamental to facilitate a smooth and secure transfer of ownership rights, as it alters the legal landscape of the mark's entitlement and obligations. To avoid pitfalls, it's imperative to meticulously examine the chain of title, conduct thorough pre-assignment due diligence, and craft a precise assignment document that outlines the terms and conditions of the assignment. Clear and organized formatting, proper execution, and recording with the relevant trademark office are also indispensable. By following optimal practices, parties can reduce the risk of disputes and ensure a successful transfer of rights, and a deeper exploration of these topics can reveal additional nuances.

Table of Contents

Understanding Assignment Agreements

A trademark assignment agreement is a contractual document that effectuates the transfer of ownership rights in a trademark or service mark from one party, the assignor, to another, the assignee, thereby altering the legal landscape of the mark's entitlement and obligations. This agreement is a crucial instrument in facilitating the transfer of trademark rights, and its nuances must be carefully considered to avoid potential pitfalls.

There are various types of assignment agreements, including partial and complete assignments, as well as exclusive and non-exclusive licenses. Each type of agreement has distinct implications for the parties involved, and it is essential to understand the differences to ensure that the intended transfer of rights is achieved. For instance, a partial assignment may transfer only specific rights, while a complete assignment transfers all ownership rights. Furthermore, agreement pitfalls, such as ambiguities in the language or inadequate consideration, can lead to disputes and undermine the effectiveness of the assignment. A thorough understanding of assignment agreements is vital to navigate these complexities and ensure a successful transfer of trademark rights.

Determining Ownership and Rights

When determining ownership and rights in a trademark assignment, it is crucial to meticulously examine the chain of title to establish a clear and unbroken sequence of ownership. This process involves identifying key stakeholders, including prior owners, assignees, and licensees, to establish a thorough understanding of the trademark's history. By doing so, parties can accurately assess the scope of rights being transferred and avoid potential disputes or inconsistencies.

Establishing Chain of Title

A thorough review of all relevant documents and records is crucial to establish a clear chain of title, which involves tracing the sequence of ownership and rights transfers from the original creator or owner to the current holder. This process entails a meticulous examination of title history, ensuring that all assignments, licenses, and other agreements are properly documented and recorded. Document retention is critical in this regard, as it enables the verification of ownership and rights transfers.

A comprehensive review of title history helps identify any gaps or discrepancies in the chain of title, which can be rectified through the execution of corrective documents or the procurement of missing records. It is essential to maintain a centralized repository of all relevant documents, including assignments, licenses, and other agreements, to facilitate easy access and review. By establishing a clear chain of title, trademark owners can ensure the integrity and validity of their intellectual property rights, thereby protecting their brand identity and reputation.

Identifying Key Stakeholders

To safeguard the integrity of trademark ownership and rights, it is necessary to identify key stakeholders, including creators, inventors, assignors, and licensees, to determine their respective responsibilities and interests in the intellectual property. This critical step guarantees that all parties involved in the trademark assignment process are aware of their obligations and duties.

A thorough stakeholder analysis is vital to identify key individuals and entities with a vested interest in the trademark. This includes:

• Creators and inventors who developed the trademark
• Assignors who transferred ownership of the trademark
• Licensees who have been granted permission to use the trademark
• Legal representatives responsible for managing the trademark portfolio
• Business stakeholders who rely on the trademark for commercial operations

Pre-Assignment Due Diligence

Prior to executing a trademark assignment, it is vital to conduct a thorough pre-assignment due diligence to guarantee a smooth and secure transfer of rights. This critical step involves verifying the ownership status of the mark, conducting an exhaustive trademark search, and analyzing the chain of title to identify any potential issues or defects. By doing so, parties can mitigate risks and confirm that the assignment is valid and enforceable.

Verify Ownership Status

A thorough review of the trademark's chain of title is crucial in verifying ownership status, as it confirms that the assignor possesses the legal right to transfer the mark. This process involves examining public records, hidden liens, and other documentation to confirm the assignor's ownership is free from encumbrances.

To verify ownership status, consider the following:

• Review trademark office records to confirm the assignor's name and address
• Check for any pending or registered trademarks that may be similar to the assigned mark
• Investigate UCC filings and other public records for hidden liens or security interests
• Examine contracts, agreements, and licenses that may impact ownership
• Verify the assignor's authority to transfer the mark, including reviewing corporate resolutions and minutes, thereby validating the transfer of ownership.

Conduct Trademark Search

Conducting a thorough trademark search is vital pre-assignment due diligence to uncover potential issues that could impact the validity or enforceability of the assigned mark. A meticulous search strategy is necessary to identify potential conflicts, verifying that the assigned mark does not infringe on existing trademarks. This involves searching federal and state registers, as well as common law sources, to identify identical or similar marks that could pose a risk.

Effective search strategies include leveraging online databases, such as the United States Patent and Trademark Office's (USPTO) Trademark Electronic Search System (TESS), and conducting a thorough review of relevant industry publications and websites. It is also vital to examine international trademark registrations, as they may impact the validity of the assigned mark. A thorough search enables brand clearance, confirming that the assigned mark is available for use and registration. By conducting a thorough trademark search, potential issues can be identified and addressed prior to assignment, mitigating the risk of costly disputes or litigation.

Analyze Chain of Title

To secure a valid and secure trademark assignment, it is vital to meticulously analyze the chain of title, verifying the assignor's ownership and documenting the transfer of rights to prevent potential disputes or challenges to the assignment's validity.

Analyzing the chain of title involves tracing the ownership history of the trademark, from its creation to the present day. This process can be complex, especially when dealing with multiple assignments, mergers, or acquisitions. It is imperative to carefully review the title history to identify any gaps or inconsistencies that could impact the validity of the assignment.

Key aspects to examine during the analysis include:

• Reviewing all prior assignments, mergers, and acquisitions to establish a clear and unbroken chain of title
• Verifying the assignor's ownership and authority to assign the trademark
• Identifying any potential chain complexity issues, such as multiple concurrent assignments or conflicting interests
• Examining the title history for any potential defects or irregularities
• Confirming that all necessary documents are properly executed and recorded

Drafting the Assignment Document

Carefully crafting the assignment document is vital, as it serves as a legally binding instrument that transfers ownership of the trademark from the assignor to the assignee. This document must be drafted with precision to facilitate a smooth and effective transfer of rights.

When drafting the assignment document, it is necessary to include detailed assignment clauses that clearly outline the terms of the transfer. These clauses should specify the mark being assigned, the effective date of the assignment, and the consideration exchanged. Additionally, the document should clearly identify the assignor and assignee, including their respective addresses and contact information.

Proper document formatting is also key to facilitate that the assignment document is easily readable and understandable. The document should be formatted in a logical and organized manner, with clear headings and concise language. This will facilitate review and execution of the document by the parties involved. By carefully drafting the assignment document, parties can guarantee a successful transfer of trademark ownership and avoid potential disputes or controversies.

Executing and Recording Assignments

Upon completion of the assignment document, the assignor and assignee must execute the agreement by signing the document in the presence of authorized witnesses or notaries, as required by applicable law. This validates the authenticity and validity of the assignment.

Next, the executed assignment document must be recorded with the relevant trademark office, such as the United States Patent and Trademark Office (USPTO). This is a critical step in perfecting the assignment and providing public notice of the change in ownership.

Some vital considerations for executing and recording assignments include:

• Certifying the assignment document is properly notarized or witnessed, as required by applicable law
• Filing the assignment document with the relevant trademark office, such as the USPTO
• Paying the required filing fee for the assignment
• Providing a clear and concise description of the assigned trademark rights
• Maintaining a thorough and organized record of the assignment filing and recordation processes

Post-Assignment Obligations and Updates

Following the recordation of the assignment, the assignee is typically obligated to update the trademark office concerning changes in the assigned trademark rights. This vital step maintains the integrity of the trademark registry by informing the relevant authorities of the transfer of ownership. To fulfill this obligation, assignees must implement effective recordkeeping strategies, which involve maintaining accurate and up-to-date records of the assigned trademarks, including documentation of the assignment agreement, recordation certificates, and any subsequent changes to the mark.

Furthermore, assignees must conduct regular compliance reviews to verify that all post-assignment obligations are being met. These reviews should cover aspects such as trademark use, licensing agreements, and maintenance filings. By conducting regular compliance reviews, assignees can identify and address any potential issues before they become major problems. Effective recordkeeping strategies and compliance reviews are vital for maintaining a robust trademark portfolio and guaranteeing that the assigned trademarks continue to provide the desired level of protection and value.

Managing International Assignments

In the realm of international trademark assignments, a nuanced understanding of jurisdictional variations in assignment procedures and documentation requirements is crucial to ensure seamless and legally binding transfers of ownership. Failing to account for these differences can lead to costly delays, invalid assignments, and even litigation.

When managing international assignments, it is essential to consider the following key factors:

• Jurisdictional Challenges : Be aware of the unique legal and regulatory requirements of each country, including language and formatting specifications for assignment documents.
• Cross Border Strategies : Develop a comprehensive strategy that takes into account the varying laws and regulations of multiple jurisdictions, ensuring consistency and compliance across borders.
• Local Counsel Involvement : Engage local counsel to provide expertise on jurisdiction-specific requirements and ensure that all necessary formalities are satisfied.
• Language and Translation : Ensure accurate translation of assignment documents to avoid errors or misinterpretations that could compromise the validity of the assignment.
• Recordal and Registration : Verify that the assignment is properly recorded and registered with the relevant intellectual property offices to secure the new owner's rights.

Frequently Asked Questions

Can multiple trademarks be assigned in a single agreement?.

Yes, multiple trademarks can be assigned in a single agreement through a process called trademark bundling, which involves consolidating multiple marks into one assignment strategy, streamlining the transfer process and reducing administrative costs.

What Is the Role of a Notary in the Assignment Process?

In the assignment process, a notary plays a vital part by authenticating the identity of parties involved and verifying the signature on the assignment document, facilitating notary verification and subsequent public recordation of the assignment.

Are Trademark Assignments Subject to Sales Tax or Vat?

In general, trademark assignments are not subject to sales tax or VAT, as they involve the transfer of intangible rights rather than tangible goods, thereby minimizing tax implications and financial obligations.

Can a Trademark Be Assigned to a Trust or Holding Company?

A trademark can be assigned to a trust or holding company, offering Trust benefits such as asset protection and separation of personal and business liabilities, while providing centralized management and control over the intellectual property asset.

Do Assignment Agreements Need to Be in the Original Language?

In general, assignment agreements need not be in the original language, but language barriers can lead to misunderstandings. To avoid disputes, consider translating agreements to facilitate clarity, albeit at additional translation costs.

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Assignment of Trademark

GENERAL UNDERSTANDING:

As physical properties are transferred, the same way trademarks are also transferred. This transfer of trademark is called Assignment of trademark. In general terms, Assignment means transfer of title, rights, interest and benefits from one person to another person.

Thus, Assignment of trademark means transfer of Owner’s title, rights, interest and benefits to other person. The transferring party is called as “Assignor” and the receiving party is called as “Assignee”.

STATUTORY DEFINITION:

Section 2(1)(b) of the Trade Marks Act, 1999 “Assignment” means an assignment in writing by the act of the parties concerned;

WHO CAN ASSIGN A TRADEMARK:

As per section 37 of the Trade Marks Act, 1999, the person entered in the register of trademarks, as the proprietor of a trademark, shall have power to assign a trade mark and to give effectual receipt of for any consideration for such assignment.

ASSIGNABILITY OF REGISTERED OR UNREGISTERED TRADEMARK:-

As per section 38 of the Act, a registered trademark can be transferred with or without the Goodwill of the business concerned either in respect of all the goods or services in respect of which the said trademark is registered or of some of the goods or service.

Moreover, as per section 39 of the Act, an unregistered trademark may be assigned with or without the Goodwill of the business concerned.

  TYPES OF ASSIGNMENT:-

1. Assignment with Goodwill of Business: Where an assignor assigns to the assignee, the value, rights and entitlements also, as associated with a trademark with respect to the goods or services already in use by the assignor. After taking over the goodwill associated with the trademark, the assignee is free to use the trademark assigned to him for all goods or services including for the goods or services which were already in use by the Assignor. Such assignment is called assignment with Goodwill of Business.

For Example: Mr. X is the owner of a trademark “TM” who is already using the said trademark “TM” in relation to clothing and footwear. Mr.  X assign to Mr. Y the said trademark “TM” through an agreement (in writing) in relation to clothing and footwear alongwith the Goodwill associated with trademark “TM”.

In this case, Mr. X has also assigned to Mr. Y, the Goodwill associated with trademark “TM” for the business of clothing and footwear as well as for other goods or services. Therefore, Mr. Y is eligible to use the said trademark “TM”, for clothing and footwear including other goods or service dealt by Mr. Y.

2. Assignment without the Goodwill of Business: Where an assignor assigns to the assignee, the right and entitlements in a trademark with respect to the goods or services which are not in use by the assignor. In other words, where the assignor restricts the assignee with a condition that the assignee is not entitled to use the trademark assigned in relation to the goods or services already in use by the assignor. Such assignment is called assignment without the Goodwill of Business.

For Example: Mr. X is the owner of a trademark “TM” who is already using the said trademark “TM” in relation to clothing and footwear. Mr. X assign to Mr. Y the said trademark “TM” through an agreement (in writing) in relation to goods or services other than clothing and footwear without assigning the Goodwill associated with trademark “TM”.

In this case, Mr. X has not assigned to Mr. Y, the Goodwill associated with trademark “TM” for the business of clothing and footwear. Therefore, Mr. Y is not eligible to use the said trademark “TM”, for clothing and footwear. Thus, in case, Mr. Y wishes to use the said trademark “TM” in relation to other goods or services then he will be required to create separate Goodwill for trademark “TM” for such other goods or services dealt by him.

RESTRICTION ON ASSIGNMENT OF TRADEMARK:-

1. Parallel use Restriction: Where assignment results in creation of exclusive right in different persons, in relation to same or similar goods or services and the use of the trademark will be likely to deceive or cause confusion. Thus, multiple exclusive right in relation to same or similar goods or services, in different person is not allowed. This prevents the parallel use of a trademark by more than one person concerned in relation to same or similar goods or services. (Section-40)

2. Multiple Territorial use Restriction: Where the assignment results in creation of exclusive right, in different person in different parts of India, in relation to same or similar goods or services. Thus, assigning of scattered right in different parts of India is not allowed. (Section-41)  

PROCEDURE FOR ASSIGNMENT OF TRADEMARK:

REGISTRATION OF ASSIGNMENT OF TRADEMARK:

1. A person (subsequent proprietor) who becomes entitled by way of assignment, shall apply for registration of assignment before the Registrar of trademarks. (section 45)

2. After due satisfaction of the Registrar of trademarks, the Registrar shall enter the details of the assignee (subsequent proprietor) as the proprietor of the trademark assigned to him in respect of goods or services for which the assignment has been made. (section 45)

3. Where the validity of assignment is in dispute between the parties, the Registrar may refuse to register the assignment until the rights of the parties are determined by the competent court. (section 45)

4. Registrar of trademark shall dispose of the application for registration of assignment of trademark within a period of 3 (three) months from the date of receipt of application. (rule 76 of Trade Marks Rules, 2017 )

5. Registrar may, where there is reasonable doubt about the veracity of any statement or any document furnished, may call upon any person who has applied to be registered as proprietor of a registered trademark to furnish such proof or additional proof of title as the Registrar may think fit. (rule 77 of Trade Marks Rules, 2017)

6. Where in the opinion of the Registrar any document produced in proof of title of a person is not properly or sufficiently stamped, the Registrar shall impound and deal with it as per Chapter IV of the Indian Stamp Act, 1899 . (rule 78 of Trade Marks Rules, 2017)

7. Where the Registrar has allowed the registration of assignment, then there shall be entered in the register the particulars as follows(rule 84 of Trade Marks Rules, 2017):-

a) the name and address of the assignee;

b) the date of assignment;

c) where the assignment is in respect of any right in the trademark, a description of the right assigned;

d) the basis under which the assignment is made; and

e) the date on which the entry is made in the register.

RIGHT OF THE ASSIGNOR ON ASSIGNMENT OF TRADEMARK:

The assignor terminates to have his rights, title or any interest in the trademark, the moment assignment deed is executed in favour of the assignee, irrespective of the fact that the name of the assignee has not been updated in the record of the Registrar of trademarks.

In the matter of Classic Equipments Pvt. Ltd. Vs. Johnson Enterprises, 2009 (41) PTC 385 (Del), it was observed as follows:

“Once an Assignment Deed has executed, the Assignor ceases to have any right, title or interest in the property assigned. It is not open to the Assignor to cancel the assignment by means of communication”.

RIGHTS OF THE ASSIGNEE: WHEN ASSIGNMENT IS COMPLETE BUT REGISTRATION IS PENDING:

Though as per section 45 of the Act, it is mandated that the assignee shall apply before the Registrar of the trademarks to register his title. But this does not mean that recording of assignment of registered trademark asserts all rights or titles or interest in the assignee.

The reason behind this understanding are the opening words of section 45 of the Act, which says “where a person becomes entitled by assignment or transmission of a registered trademark, ……..”. Therefore, the first condition is entitlement of rights, title or interest by way of assignment or transmission of a registered trademark followed by registration of assignment of a registered trademark. Thus right in assignee does exist even before the registration of assignment.

In the matter of M/S. Modi Threads Limited vs M/S. Som Soot Gola Factory And…. on 4 th December, 1990: AIR 1992 Delhi 4, 1992 (22) DRJ 24 was observed as follows:

“It is true that the plaintiffs application for getting transferred the registered trade mark in its name in the office of the Registrar is still pending but that does not debar the plaintiff to protect the violation of the aforesaid trade mark at the hands of unscrupulous persons by filing an action in court of law for injunction. It is, prima facie, clear to me that during the interregnum period when the application of the plaintiff is kept pending for consideration by the Registrar of Trade Marks the dishonest persons cannot be allowed to make use of the said trade mark in order to get themselves illegally enriched earning upon the reputation built up qua that trade mark by the predecessor-in-interest of the plaintiff.”

The assignee of a trademark is also entitled to file a civil suit, even though the recording of assignment of registered trademark is pending before the registrar of trademarks. Moreover, section 45 does not confer any title over the trademark assigned. Instead the registration granted under section 45 is only proof of title of the trademark of assignee or the person who acquired it by way of assignment.

IMPORTANT KEY POINTS

√ Assignment is to be in writing;

√  Registered or unregistered both type of marks can be assigned;

√  Assignment can be with or without the goodwill of the business;

√  Event of assignment asserts the rights and title in an assignee not the registration thereof;

√  Registration of assignment is only prima facie proof of title of trademark;

√  Rights in an assignee exists even before registration of assignment of trademark.

Conclusion: –

Assignment of trademarks allows the Proprietor thereof to en-cash their intellect, efforts, time and money. It is equally important to register the assignment of trademark, since on registration the details of the assignee are updated in the register of trademark, this serves as a notice to public at large. Moreover, preparation of assignment agreements are also important as it involves rights, entitlements, interests and obligation including the commercial terms between the assignor and the assignee.

Disclaimer: The entire content of this document has been prepared as per the relevant provisions of the Act and rules made thereunder, applicable at the time of preparation. Though proper care has been taken to ensure accuracy, completeness and reliability of the information provided therein. The users and readers agree that the information provided in this document is not professional advice. Therefore, we assume no responsibility therefrom. Further, this write up shall not be considered as solicitation in any manner.

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Legal Documents

Deed of assignment of trademark (applicable in case of affiliated parties).

KShs  7,800.00

A Deed of Assignment of Trademark is a document through which the registered proprietor of a trademark transfers his/her/its rights, title and interest in the trademark to a third party. This gives the third party the right to use the trademark of the owner.

Once the Deed of Assignment is done it is required to be registered with the Registrar of Trademarks.

The difference between an assignment and a trademark is that a license allows the licensor to retain their rights and interests in their IP while an assignment transfers, all of the assignor’s rights and interests to the assignee.

This Deed is applicable in the following scenarios:

• where the assignment is limited to the use of the trademark for specific products, purposes and within a particular area;
• where the Assignee is an affiliate or a business partner i.e distributor or marketer of the Assignee; and
• where the assignment is limited to the period within which the Assignee is in business with the Assignor.

This Deed also contemplates that the goodwill of the business is being assigned. If the goodwill of the business is not being assigned, please amend appropriately.

Additional information

Need it customised , fill in the form below, best seller, related documents, related products.

Deed of Assignment of Trademark (Absolute)

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Documentary Transfer Tax

Identifying grantors and grantees.

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Adding or Changing Names on Property (Completing and Recording Deeds)

Templates and forms.

Warning about adding names

• If you are adding someone as part of a credit repair or loan deal, it may be a scam .
• If you add a name or sign a quitclaim deed, the grantee becomes an owner . You can’t change your mind without their signature.
• If you are adding an heir, you could use a living trust or Transfer on Death Deed instead of making them a joint tenant. This can avoid probate without giving up ownership while you are alive.

Any time owners make a change to the title of real estate, they must record a deed with the County Recorder. This Step-by-Step guide outlines the requirements and provides samples with instructions.

Related Guides

PCOR Tips: All recorded forms must be accompanied by a PCOR (Preliminary Change of Ownership Report). This guide has links to the form and tips on filling it out.

Affidavits of Death: If you are transferring Joint Tenancy property, Community Property with Rights of Survivorship, or Transfer on Death Deed property because someone has died, use the Affidavits of Death guide instead of this one.

Types of Deeds in California

California mainly uses two types of deeds: the “grant deed” and the “quitclaim deed.” Most other deeds you will see, such as the common “interspousal transfer deed,” are versions of grant or quitclaim deeds customized for specific circumstances. Since the interspousal deed is so commonly requested, we are including a sample in this guide.

A grant deed is used when a person who is on the current deed transfers ownership or adds a name to a deed. The grantor(s) promise that they currently own the property and that there are no hidden liens or mortgages.

Quitclaim deed

A quitclaim deed (sometimes misspelled “quick claim”) is used when someone gives up (waives or disclaims) ownership rights in favor of another person. The grantor may or may not be on the current deed. A quitclaim deed is often used in divorces or inheritance situations, when a spouse or heir gives up any potential rights to real estate. The grantor is giving up their own rights, if any, but not promising anything else.

Interspousal deed

An interspousal deed is used between spouses or registered domestic partners (“DP”) to change real estate to or from community property. Spouses/DPs can use grant or quitclaim deeds to do the same things, but the interspousal deed makes it clear that the transaction is intended to affect community property rights.

The deed I need is not on your list!

There are many other types of deeds, such as warranty deed, joint tenancy deed, easement deed, trust deed, etc. In some states, these may be considered separate deed types, but in California, these are usually just customized grant deeds.

In a warranty deed, the grantor promises to pay for any lawsuits or damages due to undisclosed ownership disputes. In California, title insurance usually covers such disputes.

Other types of deeds, such as joint tenancy deeds, corporation deeds, easement deeds, or mineral rights deeds, can be created by customizing our grant deed format by downloading the RTF (word processing) version from our website. Consult an attorney or come to the Law Library to research appropriate wording.

Step by Step Instructions

Locate the current deed for the property.

You will need information from the current deed. If you need a copy of the current deed, contact the Recorder’s Office where the property is located. In Sacramento, call (916) 874-6334.

Determine What Type of Deed to Fill Out for Your Situation

To transfer ownership, disclaim ownership, or add someone to title, you will choose between a “grant deed” and a “quitclaim deed.” Spouses/domestic partners transferring property between each other may choose an “interspousal deed.”

Here is a flow chart to help you choose:

Determine How New Owners Will Take Title

If there is more than one new owner, you are moving the real estate into or out of a trust, or the new owner is married, the form of title can have important effects.

One, unmarried owner: leave blank

If there is only one new owner, and that person is unmarried, title can usually be left blank, although it doesn’t hurt to state something like “a single person” or “a widow” or the like.

More than one owner, owners not married: “Tenants in common” or “joint tenants”

• “Tenants in common” (When one dies, their heirs get their share; probate may be needed. Shares do not need to be equal. Any owner can sell or mortgage their portion.)
• “Joint tenants” (When one owner dies, the other(s) gets their share automatically. Shares must be equal. Any owner can sell or mortgage their portion, but it turns the title into tenants in common.)

If you leave this blank, the default is “tenants in common.”

Examples: siblings who inherit property together, business partners, couples who are not married or registered domestic partners (DP).

Owners are married couple: “Community property,” “community property WROS,” or “joint tenants”

• “Community property” (Both must agree to sell or mortgage the property. At death, a share goes to the surviving spouse/DP and another share to heirs. This will probably require at least a summary probate.)
• “Community property with rights of  survivorship  (WROS)” (Both must agree to sell or mortgage the property. At death, 100% goes to surviving spouse/DP, with no requirement of probate.)
• “Joint tenants” (When one dies, the other(s) gets 100%. Shares must be equal. Either spouse/DP can sell their portion. May receive less favorable tax treatment when first spouse/DP dies.)

If you leave the title line blank, or fill in something like “as husband and wife” or “as domestic partners,” it will be treated as “community property” and a share will go to any heirs instead of all to the surviving spouse/DP.

Owner is married, but property not shared: “as sole and separate property”

If only one spouse/DP owns the property (because that person already owned it when they got married, or it was a gift or inheritance), they can make that clear by using the phrase “a married man/woman/person as his/her/their sole and separate property.” Note : if any money earned during the marriage is spent to purchase, make mortgage payments, maintain, or improve the house, the community owns a share regardless of what it says on the deed.

Property is being transferred into or out of a trust

Many couples use trusts to hold their property. The contents of a trust are technically owned by the trustees. Therefore, when transferring property into a trust, the grantees are the “[name of trustees], as trustees of the [name of trust] dated [date trust was signed].”

When transferring property out of a trust, the grantors are the trustees, identified the same way.

See “ Forms of Title for Multiple Owners ,” below, for examples of how these are entered onto the deed.

Your choice of title can have many effects later, such as when you sell or refinance, if one owner falls into debt, if one owner dies, or if a couple divorces. Some examples of potential effects are:

• reassessment of property raising annual property taxes (since 2022, parent-child transfers are no longer always immune);
• higher capital gains taxes when an owner sells;
• how the property is divided in a divorce;
• whether the property can be liened or foreclosed on for one of the owners’ debts;
• ineligibility for benefits such as Medi-Cal;
• difficulty refinancing if one owner has bad credit;
• lack of eligibility for a reverse mortgage.

If you have questions about which form of title to use, talk to a family or estate lawyer or research your options at the law library.

Fill Out the New Deed (Do Not Sign)

You will find filled-out samples of each type of deed at the end of this guide.

The deed can be filled out online, typed, or neatly written in dark blue or black ink. You will need the following information:

• Assessor’s Parcel Number. (Find this on the current deed.)
• Document Transfer Tax amount or exemption code. (Calculate 1.1% of current market value, or enter applicable exemption.)
• Names of “grantors” (the current owner(s) signing the deed) or of the disclaiming party(ies). (Enter the name(s) as spelled on the current deed.)
• Names of “grantees.” (Enter all the intended owners, including any current owners who will still own the property). Important: If you add a name, that person legally becomes an owner. You cannot change your mind without their signature.
• Form of title the grantee(s) will use. (If no form of title is entered, this will be “tenants in common” for unmarried owners or “community property” for married couples.)
• The legal description of the property. (Find this on the current deed.)

Grantor(s) Sign in Front of a Notary

The notary will charge a fee for this service. You can find notaries at many banks, mailing services, and title companies.

The new owners do not need to sign.

Fill Out the Preliminary Change of Ownership Report (PCOR)

The PCOR is required when property changes hands, to update the tax records. Turn it in at the Recorder’s Office along with the deed. You can download a  Sacramento version of the PCOR  from Cal Assessor e-Forms. Each county has its own version; contact the assessor’s office in the county where the property is located to obtain the proper form.

Record the Deed and File the PCOR at the Recorder’s Office

The Recorder’s Office charges a recording fee (currently $20/first page plus $3 for additional pages). Current Sacramento fees are available at the County Clerk/Recorder’s website . You may also need to pay the Documentary Transfer Tax or a $75 “Building Homes and Jobs Act” fee.

File Reassessment Exclusion Claim, if any, at the Assessor’s Office

When property changes hands, it is reassessed for tax purposes, often causing a sizeable increase in property tax for the new owner.

Certain transfers are excluded from reassessment, including:

• Parent to child or child to parent (“Prop 58 Exclusion” for deaths before 2/15/2022, “Prop 19 Exclusion” for deaths after 2/15/2022)
• Grandparent to grandchild (but not vice versa) (“Prop 58 Exclusion” for deaths before 2/15/2022, “Prop 19 Exclusion” for deaths after 2/15/2022)
• Transfers between spouses or registered domestic partners during marriage or as part of a property settlement or divorce
• Changes in method of holding title that do not change ownership interests (for instance, changing joint tenants into tenants in common)

If your transfer is excluded from reassessment, you may need to file a claim with the County Assessor. For more information in Sacramento, call the Assessor’s office (916‑875-0750) or visit the  Sacramento Assessor’s office website .

Common questions when filling out deeds

Some parts of deeds often need more explanation.

When property changes hands, the county charges a one-time tax of $.55 per $500 of the value of the real estate (1.1%). Some kinds of transfers are exempt. If yours is exempt, enter the Revenue and Taxation code that provides the exemption, and an explanation, then sign. If yours is not exempt, calculate the dollar amount and write it in.

Common exemption codes and explanations:

• Gift  (transferring property, or adding name to property, without compensation) : Code: “R&T 11911” Explanation:“Gift.”
• Living Trust  (transfer into or out of revocable living trust): Code: “R&T 11930” Explanation: “Transfer into or out of a trust”
• Name Change  (confirming name change after marriage or court-ordered name change): Code: “R&T 11925” Explanation: “Confirming change of name, the grantor and grantee are the same party.”
• Conveyances in dissolution of marriage: Code: “R&T 11927” Explanation: “Dissolution of marriage.”

Other exemptions may be available. See the list of  “Transfer Tax Exemptions”  on the Sacramento Recorder’s website.

Building Homes and Jobs Act Fee (SB 2)

There is an additional $75 fee on mortgage refinances and other real estate transactions that are exempt from Documentary Transfer Tax. Some exceptions apply. Contact your county recorder’s office to determine the total amount you will need to pay.

Grantor(s): The current owner or person transferring the property rights or part of the property rights. This is the person or people who will sign this deed.

Grantee(s) : List all people who are receiving property rights from the grantor(s). If the grantor is staying on title, be sure to list the grantor’s name as one of the grantees also.

It’s often helpful to include the grantors’ and grantees’ marital status.

Forms of Title for Multiple Owners

When there is more than one grantee, you will need to specify the form of title. It can also be helpful to do that if a grantee is a married person or domestic partner.

Here are examples of common title phrases:

• One owner, not married: generally no form of title is needed.
• John Doe, A 50% interest, Jeffrey Doe, a 25% interest, and Paula Smith, a 25% interest, as tenants in common
• John Doe, Jeffrey Doe, and Paula Smith, as joint tenants
• Pat Jones-Larsen and Jan Jones-Larsen, as community property
• Pat Jones-Larsen and Jan Jones-Larsen, as community property with right of survivorship (WROS)
• Pat Jones-Larsen, a married person, as their sole and separate property
• Janet and Lewis Campbell, as trustees of the Campbell Family Living Trust, dated January 3, 2017
• Elm Street Books, a partnership
• Janet Smith and Mark Baker, a partnership
• Acme, Inc., a Delaware corporation 
• Initech, LLC, a California Limited Liability Company

Here is a quick reference chart comparing common forms of title.

Name Changes: Updating Title after Changing Your Name

If you change your name (by court-ordered name change, marriage, or divorce), deeds made out to your old name should be updated. Make out a new grant deed from yourself ([new name], who acquired title under the former name [old name]) as Grantor to yourself ([new name]) as Grantee. For example:

Recording a Grant Deed after inheriting property by affidavit

In some situations, after a property owner dies, a new owner receives the property without having to go through probate, just by recording an affidavit. Common examples include people who own the property together as joint tenants or community property with right of survivorship, and people who inherit property via a transfer on death (TOD) deed. For more information, see our guide on Affidavits of Death: Transferring Property without Probate.

The new owner removes the prior owner from the deed by filing an Affidavit of Death of Joint Tenant, Affidavit of Surviving Spouse, or Affidavit of Death of Transferor under TOD Deed.

This is legally sufficient to change ownership, but the lack of a deed showing the new owner’s name can be confusing and lead to problems when selling or refinancing the property. The new owners can make the chain of title (history of ownership) clearer by recording a Grant Deed showing themselves as the Grantee. Here’s how:

Fill out a standard Grant Deed for the property. The new owner will list themselves as both the Grantor and the Grantee. For example, if Chris Jones was a surviving joint tenant on property, after they recorded an Affidavit of Death of Joint Tenant, they could fill out a grant deed like this:

Legal Description

This is the full description of the property, not just the address. It may be brief or very long and full of legalese. It must match the current deed  exactly .

You may want to photocopy the legal description and attach it to the new deed as an exhibit, especially if it is too long to fit on the page.

Transfers after probate proceeding (executor’s deed)

If a piece of real estate is part of a probate case, once the case is resolved the personal representative (executor or administrator) must record documentation showing that it is now owned by the heir or heirs. They can either:

• record a certified copy of the judge’s Order for Final Distribution, or
• record a deed from the personal representative to the beneficiary.

Because the Order is bulky and may have personal and financial information, recording a deed is often preferred. The deed must reference the legal description of the property, the county and case number of the probate case, and the date and title of the order authorizing distribution, state that there is no representation, warranty, or covenant of any kind, and be signed by the personal representative “as executor or administrator of the Estate of ________.”

Here is example wording of a Deed to Real Property that can be customized to fit your needs. The sample is worded for a probate that includes a will. If your situation does not include a will, you would state that you are “administrator of the estate” instead of “executor of the will.”

For More Information

Sacramento County Clerk-Recorder’s Office Sacramento County Assessor’s Office :

• Change in Ownership Reassessment Exclusions
• Proposition 19 (Changes to Parent/Child and Grandparent/Grandchild Exclusions)

DivorceNet: “ Interspousal Transfers vs Quitclaim Deed ” Self-help information about the differences between these two deeds.

At the Law Library

Deeds for California Real Estate ( KFC 170 .Z9 R36, Self-Help) This book, published by Nolo Press, a respected publisher of self-help legal books, is a guide to choosing the right kind of deed, completing the required forms, and filing them. It also discusses related legal issues such as disclosure requirements, community property issues, and tax and estate planning. It contains forms for most transfers of property.

Miller & Starr California Real Estate Forms (KFC 140 .M53) Sections 1:133-1:137 offer language for grant, interspousal, quitclaim, and easement deeds.

California Real Property Practice Forms Manual (KFC140 .A65 C34) A range of sample forms for specific situations such as easements, mineral rights, and more.

PCOR Instructions and Tips In addition to your deed, you will also need to turn in a PCOR (Preliminary Change of Ownership Report). Download the Sacramento PCOR or obtain it from the county assessor where the property is located (the form is different in each county).

Below are samples of the deeds discussed in this guide.

Quitclaim Deed

Interspousal Deed

This material is intended as general information only. Your case may have factors requiring different procedures or forms. The information and instructions are provided for use in the Sacramento County Superior Court. Please keep in mind that each court may have different requirements. If you need further assistance consult a lawyer.

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What is the Stamp Duty For Trademark Assignment?

• Post author: D. Lalitha B.com B.L (Hons)
• Post published: June 6, 2024
• Post category: Intellectual Property / Trademark

Last Updated on June 6, 2024 by D. Lalitha B.com B.L (Hons)

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:

• ₹9,000 for electronic filing.
• ₹10,000 for filing in person with the Trademark Registrar.
• ₹4,500 for e-filing.
• ₹5,000 for filing by hand.
• 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:

• 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.
• 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.
• 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:

• 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.
• Mandated by the Indian Stamp Act of 1899 Section 3.
• Ensures legal completion and validity of documents.
• 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 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.
• For trademark transfer deeds and related paperwork to be legally enforceable in India, they must be stamped.
• 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.
• Utilized to initiate registration requests for an individual’s title following an assignment.
• 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 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.
• 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.

• 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.

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D. Lalitha B.com B.L (Hons)

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