Trademarks are an essential element of a business operation. While a trademark is usually defined as the symbol or words that are legally registered with the authorities and established to represent the said company or a product, in a branding sense, it is much more than that. A trademark is the identifier of a brand, even after the company is long gone. Consider the examples of Pan Am, Blockbuster, and Compaq. These brands do not exist anymore, but most would still recognise their logos if they saw them.
But what if a company decides to restructure their business or even sell the trademark to another business? What can the company in question do regarding their trademark? This article will shed light on the options that are available in such cases.
If you are restructuring your business, then the best course of action, in that case, would be to transfer the trade mark to the newly established legal business entity. It is crucial as, without this step, you would not be able to use the in-question trademark for any purpose, or even sell it in the future to a different company.
But before you transfer your trade mark in restructuring, there are some questions you must ask yourself.
- What would be the best structure for my business?
- Which is the right place for me to hold my assets and shares?
- What are the tax implications of such a move?
Now, on how to transfer a trademark?
When it comes to transferring a trademark, there are two necessary steps to effect the transfer:
- Fill out a form that will notify IP Australia about the change of ownership of a trade mark.
- Submit an IP assignment agreement to IP Australia, which would be the evidence of the transfer of trademark from one party to another.
But transferring the trade mark is not the only option available for one in case of restructuring as the first entity can own rights of the trade mark and allow the new entity, the restructured business, to use the trademark. This is done through licensing. In this case, the trade mark remains the property of the existing business entity instead of the newly established one. In such cases, IP Australia does not need to be notified.
One should also keep in mind that if the changes are minor and do not require a transfer of assets like the change of name or address, the trade mark does not need to be transferred as the ACN remains the same.
If you are looking to make the best use of trade mark in business sale or restructure, then this post will surely help. Nothing is impossible when you want to use trademarks for business sales or you want to transfer trademarks in case of business restructuring. Just keep all the points mentioned above in mind and you are good to go.
