How Do You Sell A Trademark?

A trademark is a type of intellectual property that can be sold like any other type of property. It can be transferred along with the ownership of the business or product that the trademark represents.

In Canada, trademarks are registered with the Canadian Intellectual Property Office, where the owner of the trademark is also listed. There are many elements in your business that can be trademarked and these trademarks can be sold by themselves or with your business. Consider these 5 steps before going through the process of selling your trademark.

1. Identify the Potential Buyer

Always identify your potential buyer first. Possible buyers include your competitors, your employees and any party looking to enter your marketplace. Each of these parties may be interested in selling products under your trademark. The sale may also involve the physical assets of the business such as cash, inventory, equipment, etc. The actual transfer of the trademark typically requires written documentation. It can be beneficial to have these documents drafted by a competent intellectual property lawyer.

2. Find the Buyers

If you are unable to find a suitable buyer among your employees or competitors, finding a buyer for your trademark can be quite a task. If you aren’t able to find a buyer, it may be possible to find a buyer on a trademark exchange or auction sites such as the International Trademark Exchange. You can provide details include your sale price and a description of your trademark. If there is interested in your trademark, you may be contacted by the interested party.

3. Create an Assignment Agreement

It is advisable to prepare a legal agreement between the parties involved in the sale. You should ensure that all the details related to the sale are correct, including the name of the buyer, his address and other important information. It is important to clearly set out the details of the sale, including the sales price, any transfer fees and who is responsible for the each step in the transfer process. It is important that this agreement is signed by a person authorized to sign the agreement. More than one signature may be required in the event that a partnership owns the trademark. Having an acknowledgment from the purchasing party of the sale is required for the transfer of trademarks in some countries.

4. Submit Your Assignment

A copy of the executed agreement should be recorded with the Canadian Intellectual Property Office. In order to update the records at the Trademark Office, you must provide a copy of the agreement showing the chain of title from the original owner to the new owner and provide contact information for the new owner of the trademark. A fee is payable for the record of an assignment with the Canadian Intellectual Property Office.

5. Valuate Your Trademark

Before selling the trademark to someone else, you should have an understanding of its value. When the trademark is assigned to a person, he is known as the ‘assignee.’ The assignee has to consider the efficacy and the value in licensing. It is generally valuated on the strength of its earning power while in some cases the valuation is done purely on the basis of goodwill.

At Prowse Chowne LLP  our professionals can help to guide you through the trademark selling process effectively. We help you not only to stay up-to-date with all the latest Canadian trademark policies but also ensure that your business names and innovations are protected. To know more, contact our professionals today!