Trademarks are crucial to set a brand apart from its competitors, no matter the product or service offered.
A trademark is at the forefront of a business in terms of brand representation. Once a brand gains considerable success, an owner may choose to sell their trademark to profit off their hard work.
So how does one sell a trademark? Here’s a quick overview on the process of selling a mark:
Can I Sell My Trademark?
Yes, you absolutely can. Making money off your trademark isn’t limited to licensing only. A trademark owner may choose to transfer the rights and ownership of a trademark to a third party – permanently.
Usually, two parties are involved in the sale of a trademark. The individual or entity selling the trademark (‘Assignor’) and the individual or entity buying the trademark (‘Assignee’).
In this case, the Assignee receives full rights to the mark. Gaining legal ownership in this manner means the Assignee may choose to use the trademark for their products and services and in turn, profiting off the trademark itself.
Trademark owners may also choose to partially sell their trademark, meaning buyers are only able to utilize the mark within certain trademark classes or products and services. The conditions depend upon the Assignor and their motives for selling a share of the trademark.
The decision to sell a trademark can be based on many factors, such as financial gain, business growth, new ventures or a shift in business goals.
Process of Selling A Trademark In Malaysia
Step 1: Evaluate Your Trademark
Assess the value of your trademark before deciding on a sale. The price of your trademark should reflect factors such as market reputation, existing customer base and potential growth and development. Don’t know how to price your trademark? Consult one of our Trademark Consultants to make the right decision.
Step 2: Negotiate Terms With Potential Assignee
Discuss with your potential assignee on the terms of sale, such as price, payment structure and the conditions of use for the trademark. These terms depend on several points, such as full or partial sale, number of classes under the trademark, geographical restrictions and more.
Step 3: Draft A Trademark Assignment Agreement
According to the terms set between both parties, a legal professional may step in to draft a trademark assignment agreement to set out the details outlining the transfer of trademark from Assignor to Assignee. The agreement may include details of trademark, details of Assignor and Assignee, terms of sale, conditions and restrictions.
Step 4: Submit Assignment to MyIPO
Once the agreement is drafted and finalized, both parties will need to complete forms and provide relevant documentation to Intellectual Property Corporation of Malaysia (MyIPO) to proceed to the next step.
Step 5: Complete Trademark Transfer
Both parties will need to fulfill all necessary obligations to ensure the trademark transfer process is as smooth as can be. Should the trademark transfer be successful, MyIPO will process and record the transfer of ownership within their system. This makes the entire trademark transfer process legal and official, making the Assignee the new owner of the trademark sold.
Why Sell My Trademark?
If you are a business or trademark owner who is looking to bring in financial gains, expand business partnerships, redirect to new ventures, relieve assets no longer serving yousr business and more, selling your trademark can be a life changing decision for you and your business.
The Quality Oracle team is ready to guide you every step of the way.
