Can You Purchase a Trademark?

Buying a trademark is one of the most effective strategies for creating a brand within the shortest time possible without having to register it. 

A trademark is a company’s name, logo, or motto, and it is always easier to take over a trademark than to build it from scratch and gain its reputation and legal rights. 

But how does this process work, and what requirements should be taken into account before purchasing a product? Let’s explore.

What Is It Like to Acquire a Trademark?

A trademark acquisition entails the buying of rights in a certain trademark from the holder of the trademark at the time of the transaction. 

This involves the legal rights associated with the mark, the goodwill that goes with it, and any recognition previously accorded the mark. 

However, when you purchase a trademark, you are not required to file a new mark which can help you to avoid some conflict with the existing marks. 

This is helpful to those business that are considering rebranding or those that are planning to venture into another market.

Advantages of Buying a Trademark

Acquiring a trademark offers several advantages:

Immediate Rights

The moment of purchase gives you full legal rights to the trademark for the protection of the brand without any delay.

Avoiding Infringement Issues

Using an already existing trademark can help avoid the problem of having to deal with someone else’s registered trademark.

Built-In Goodwill

Some purchased trademarks arrive with a clientele base and reputation that can help your brand.

Where to Buy a Trademark

Finding the right trademark requires research and strategy:

Online Marketplaces

Trademarkia is one of the best online platforms where people can search for trademarks sell their trademarks, or use private broker services.

Direct Negotiation

It is also possible to directly contact businesses or individuals whose trademarks one wants to acquire.

Trademark Auctions

A few trademarks can be purchased through auctions, creating chances to own important marks.

How to Buy a Trademark

Buying a trademarks involves some steps:

Identify the Right Trademark

Select a trademark that will serve the purpose of your business. Evaluate its market need and appropriateness, brand image, and reputation, and the goodwill that comes with the brand.

Conduct a Thorough Search

Check the status of the trademark with the USPTO database or with international trademark registers. It has to be active and without any type of legal issues surrounding it.

Negotiate the Purchase

Negotiate with the owner of the trademark on the price to pay, the rights to be granted, and future limitations.

Prepare Trademark Assignment Agreement

Draw up a legal contract that will govern the actual transfer having regard to legal requirements on trademarks.

Submit the Assignment with the USPTO

This makes the transfer official and you should submit the agreement to the USPTO. This step is important if you want to safeguard your interests.

Legal Issues to Consider When Buying a Trademark

Purchasing a trademark involves important legal aspects:

Enforceability

Make sure that the trademark is properly registered and that enforcement of the trademark is legal according to laws that apply to the country.

Licensing and Restrictions

Examine any license or other agreements that may be in force regarding the trademark.

Litigation Risks

Make sure that there is no pending legal case or litigation against the trademarked name or symbol.

Common Pitfalls to Avoid

Avoid these mistakes during the process:

Skipping Due Diligence

When the trademark’s validity and ownership are not established, the holder is exposed to a number of costly legal complications.

Overpaying

Make sure the trademark reflects the value that you want your trademark to have for your business and the market.

Not Registering the Transfer

Not filing the transfer with the USPTO retains the ownership in question.

Why Do You Need a Trademark Lawyer?

The process of acquiring a trademark is not always easy and having a trademark attorney who specializes in trademarks means that the process is as painless, swift, and legally correct as possible. 

Here’s how they can help:

Searching More Specifically and Diligence

When buying a trademark it is crucial to establish whether the trademark is valid and who owns it. 

Our trademark attorney has all the equipment and knowledge to make searches that can be done within the USPTO and other registries. 

They’ll look for possible infringement, current litigation, or other barriers to the trademark and this will help you avoid making a bad investment.

Writing a Defensible Trademark Assignment Agreement

The assignment agreement acts as the basis of the purchase procedure. A trademark assignment document grants you the rights to the trademark from the seller and it has to be formal, legal, and unique. 

Our trademark attorney will make sure that the agreement contains all the terms you need; the extent of the rights being granted, any conditions, and the clauses protecting your business.

Making Sure That the Transfer is Made and Accepted By the USPTO

Thus, to complete the ownership change the assignment has to be filed with the USPTO. This filing will be done by our attorney to make sure that all the paperwork is legal. 

This is important in ensuring that you protect your interests and ensure that the transfer is recognized by the law.

If you have questions about purchasing a trademark, reach out to Drishti Law at 773-234-1139 for a free consultation. Our experienced attorneys are here to guide you through the registration process, helping to ensure that your brand receives the protection it deserves under state and federal laws.