How to Transfer Trademark Ownership in India: Process & Fees

A trademark transfer is usually needed when a business is sold, merged, or reorganized. Every business needs a unique identity or brand to stand out, and a strong brand helps earn customers’ trust. A trademark registration protects that brand and gives you legal rights over the brand’s name, logo, or symbol. This makes it important to transfer trademark ownership correctly to ensure legal protection.

In India, the Trade Marks Act, 1999, controls trademark transfers. The law gives a clear process for assigning or licensing a trademark. A proper transfer lets the new owner use the mark and protect it. It also keeps the current owner’s rights safe. Doing it correctly can prevent problems. 

That’s what we will be discussing in this article. We will explain the legal rules, who can transfer a trademark, and the step-by-step process.

Legal Basis for Transfer of Trademark Ownership in India

In India, you can transfer the ownership of your trademark legally under the Trademarks Act, 1999. The main aspects under this law are:

1. Assignment of Trademark: Assignment is the process of transferring the entire ownership of the trademark to another person. The transferee receives all rights to use, license, sell, and protect the trademark.

2. Assignment with Goodwill:  When the owner assigns a trademark with goodwill, the purchaser receives the trademark. The transfer also includes the business reputation, subject to any conditions set by the purchaser. Buyers receive the trademark and the goodwill attached to it.

3. Licensing of Trademark: Licensing allows a licensed party to use the trademark without any transfer of ownership rights. The owner retains all the legal rights to the trademark, while the licensee can use the trademark within the conditions agreed on.

• Exclusive License: A license for a single company/individual to use the trademark. It is used to keep the brand in the owner’s hands.
• Non-Exclusive License: Granting more than one company/individual to use the trademark. The owner keeps all the legal rights.

4. Recording with the Trademark Registry: Legally transferring the ownership of the trademark requires the owner to register the transfer with the Trademark Registry. This safeguards the rights of the new owner. The owner must register the transfer; otherwise, others can keep using the trademark without permission. 

Surety, security, and legality of the transfer are ensured if these rules are followed. This avoids any complications with the brand in the future.

Who Can Transfer a Trademark in India?

In India, not everyone can transfer the ownership of the trademark. Only the legal owner or authorized person can do it legally. Under Sections 37 to 45 of the Trade Marks Act, 1999, only the following parties have the right to transfer the trademark:

1. Sole Owner: A sole owner can assign or license their trademark to another person or business. The agreement must clearly state whether the goodwill is included. The owner must sign the assignment document for the transfer to be valid.

2. Joint Owners: All joint owners must agree to the transfer. If one owner does not consent, the transfer cannot happen. Agreements may allow one owner to act on behalf of others.

3. Authorized Representative(s): The owner can appoint a representative with a Power of Attorney or written authorization. The representative must follow the owner’s instructions and cannot act independently.

4. Companies/Corporations: The company owns the trademark, not its employees or directors. The company grants authority through a board resolution or shareholder decision, and the authorized signatory (usually a director or secretary) signs the transfer documents.

After signing, the transfer must be recorded with the Trademark Registry using Form TM-P. The Registry updates its records, and the new owner’s rights are fully protected only after this update.

Pre‑Conversion Requirements for Trademark Transfer in India

Before you transfer trademark ownership, complete these checks: 

• Check Trademark Registration Status: The owner can transfer only a registered and active trademark. They cannot transfer a trademark with a pending or expired status. The owner can check the trademark’s status on the Indian Trademark Registry website.
  
• Verify Ownership: You must make sure that the person transferring the trademark is the true owner. Check for co-owners of the trademark, any disputes over the trademark, or claims against the trademark before going forward with the transfer.
  
• Draft an Assignment or Licensing Agreement: Prepare a legal agreement for the transfer. If the trademark is being assigned, mention whether it includes goodwill. For licensing, clearly define the rights, scope, and duration. Include any payment or other conditions. These tiny steps would protect both parties in the long term.
  
• Clear Any Disputes or Legal Claims: Make sure the trademark is free from litigation, liens, or other legal claims. Any ongoing dispute can block the transfer process.

Transferring a trademark can be tricky if you’re unsure about the documents or procedure. Get expert help from RegisterKaro to make the process smooth and legal. Contact us today!

How to Complete the Trademark Transfer Process in India?

Transferring a trademark is an important step when selling, licensing, or reorganizing your business. Doing it correctly ensures the new owner can legally use and protect the trademark.

Here is the step-by-step process to complete a trademark transfer smoothly in India:

Step 1: Prepare the Transfer Agreement

• Decide if this transfer is an “assignment” (the transferee receives full ownership).
• Decide if this is a mere license (the transferee has permission to act).
• Specify if Goodwill is part of or not in your Transfer Agreement.
• State what rights are being transferred and any consideration that is being paid among the parties.  
• Provide signature lines for both parties.

Keep a copy of your Transfer Agreement.

Step 2: Gather Required Documents

• A Trademark registration certificate as proof of ownership.
• Assignment or licensing agreement (signed by both parties).
• Power of Attorney, if someone is acting on behalf of the owner.
• Board resolution, if the trademark belongs to a company.

Check that all documents are complete and correct to avoid delays.

Step 3: File the Transfer with the Trademark Registry

• File the application online via the IP India Trademark Portal or offline.
• Use Form TM–A for assignments and Form TM–P for licensing.
• Attach all required documents and signatures.

Ensure the application details match the documents exactly.

Step 4: Pay the Government Fees

Pay the official fee for processing the transfer:

• ₹9,000 per trademark per class (online filing)
• ₹10,000 per trademark per class (physical filing)

Keep the payment receipt as proof.

Step 5: Examination by the Registry

• The Trademark Registry reviews your application and documents.
• If there are trademark objections or missing information, the Registry may request clarification.

Respond quickly to avoid delays in approval.

Step 6: Recording the Transfer

• Once the Registry approves, it officially records the transfer.
• The new owner’s name is updated in the Registry.
• This new owner now holds full legal rights to the trademark.

Step 7: Confirmation and Certificate

• The Registry issues a confirmation notice for the transfer.
• The new owner can request an updated trademark certificate if needed.
• Keep this confirmation as proof of ownership.

The trademark transfer usually takes 3 to 12 months, depending on the Registry workload and clarifications.

Note: Always ensure all co-owner consents and documents are complete before filing. Missing approvals or incorrect documents can delay or even reject the transfer.

Complete the transfer right, and your brand continues its journey safely with the new owner.

Common Challenges During Trademark Transfer and How to Avoid Them

Errors in documents, missing approvals, or legal issues often cause problems during a trademark transfer. Below are the most common challenges faced and ways to avoid them:

1. Lack of Consent from All Co-Owners: If owners co-own a trademark, disagreements over the terms or transfer can stall or prevent the transfer.

How to avoid it: Get written consent from all co-owners before transfer.

2. Existing Disputes or Legal Issues: Pending litigation, claims, or disputes on a trademark can prevent transfer.

How to avoid it: Make sure the trademark is free from legal issues. Resolve any disputes before filing.

3. Incomplete or Incorrect Documentation: Missing signatures, wrong details, or incomplete agreements may result in rejection by the Trademark Registry.

How to avoid it: Prepare a correct assignment or licensing agreement and include all supporting documents like registration certificates, Power of Attorney, and board resolutions if applicable.

4. Goodwill Confusion: Not specifying whether the transfer includes goodwill can create disagreements over value.

How to avoid it: Clearly state in the agreement whether goodwill is included and define the rights being transferred.

5. Delays at the Trademark Registry: The Trademark Registry may take time to examine and approve applications.

How to avoid it: Respond quickly to any queries from the Registry and track the application online.

6. Tax Implications: Unexpected tax liabilities can arise if the transfer is not planned carefully.

How to avoid it: Review tax implications in advance and maintain accurate financial records.

Identifying these challenges early helps ensure a smooth and legally secure trademark transfer.

Trademark Assignment vs Trademark Licensing

When transferring a trademark, it’s important to know the difference between assignment and licensing. Choosing the right method protects your brand and business value.

Below is a clear comparison between trademark assignment and licensing:

Feature	Trademark Assignment	Trademark Licensing
Ownership	Full ownership of the trademark is transferred to the new owner.	Ownership remains with the original owner; the licensee only gets permission to use it.
Goodwill	Can be transferred along with the trademark if mentioned in the agreement.	Goodwill is not transferred; the licensee does not own the brand reputation.
Legal Rights	The new owner gains all legal rights to use, sell, and protect the trademark.	The owner retains full legal rights; the licensee must follow the agreed terms.
Exclusive/Non-Exclusive Use	Not applicable – ownership is complete.	Can be exclusive (one licensee) or non-exclusive (multiple licensees).
Registry Recording	Must be recorded with the Trademark Registry to be legally valid.	Must be recorded with the Trademark Registry to make the license official.
Revenue	Consideration is usually a one-time payment.	Consideration can be a fixed fee, royalty, or ongoing payments.

Note: Always clearly define the terms in the agreement and record the transfer or license with the Trademark Registry. This ensures legal protection and avoids future disputes.

Ensure a smooth and error-free transfer by preparing documents correctly, getting all approvals, and following legal procedures. Let RegisterKaro handle the entire process, including documentation, filings, and compliance. You will save time, effort, and avoid unnecessary costs. Fill the form now!

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