SALE, ASSIGNMENT, USE AND NON-USE OF TRADEMARK
Just like any other property, a proprietor (owner) of a registered trademark can sell, transfer and lease out his trademark to another person or entity. Such proprietor upon assigning his trademark to its buyer should issue receipt for the transaction. Upon the death of a proprietor of a trademark, his trademark can be transmitted to his heirs. A person who becomes entitled to a trademark by assignment or transmission is expected to make an application to the Registrar of Trademarks for such assignment and transmission to be registered.
A proprietor of a trademark can allow certain persons/entities to use his trademark with him. Such is referred to as “Permitted Use” and a permitted user is expected to apply to be registered as a “Registered User”. A registered user of a trademark has only the right to use a trademark and not proprietorship/ownership of such trademark. A registered user unlike a trademark owner/proprietor cannot sell, assign or transmit his right to use.
Note that, if after a continuous period of five years or more from the date of registration of a trademark, there is no bonafide use of such registered trademark or the trademark was registered without a bonafide intention to use same or such trademark had been registered by another proprietor earlier, the Registrar will take off such trademark from the register of trademarks. The Registrar will do such on the ground of Non-Use of a registered trademark.
Conclusively, trademark gives you a mark of authenticity, ownership and security in business. A good trademark is an integral part of business goodwill/franchise which are saleable and are equally loud voices in marketing, branding and customer-retainership.