Trademark licensing is where the owner of the registered trademark allows others to use their mark. Once a licence is granted, this will allow the licensee (the person who is receiving the licence) the right to use the trademark owner’s mark, and in return the trademark owner will receive a sum of money, thus the trademark owner will be able to generate income.
On the other hand, there is trademark assignment. This is where the trademark owner hands over the proprietorship of their trademark to a third party, meaning that the assignor (the trademark owner who transfers their trademark) ceases to be proprietor of that trademark from that point on. This will also mean that the assignor will no longer be able to use that mark like its own, except where the assignee provides the assignor with a licence.
In summary, an assignment is where the ownership of a trademark has shifted to someone else, while licencing is where the trademark owner grants permission to a third party to use their trademark, while still remaining to be the owner of that registered mark.
What are the advantages of a licence?
- Licensing your trademark may promote your mark to be known to different industries;
- Licensing your trademark may allow you to receive financial income without giving up the ownership of your mark;
- Purchasing a licence may be cost effective as you may not need to incur expenses to promote and market your goods.
What are the advantages of an assignment?
- The assignee could benefit from the already recognised and developed trademark;
- If the assignment is registered it will make it easier for the assignee to use the mark and take legal action against those who use it without authorisation.
If you would like to discuss protection of your brand, please get in touch with the Trademarkroom team today.
