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Risks that should be noted when transferring trademarks

Trademark is a reflection of a company’s goodwill and product reputation. The essence of trademark transfer is the transfer of brand value. Trademark transfer is a complex process. In addition to the contract and the value of the mark, it also involves the prevention and control of a series of legal risks during and after the transfer is completed.

So, what are the risks worth noting during the trademark transfer process?

(1) Compliance risk

Trademark rights are private rights, and the trademark owner cannot be restricted from disposing of his rights without express legal provisions. It needs to be emphasized that in order to avoid the loss of state-owned assets and to prevent the parent company from taking blood from the listed company through trademark licensing or transfer, related transactions involving trademark transfer must value the trademark to be transferred, and the transfer price shall not be lower than the appraised value. . In order to facilitate transactions, the value of some trademarks is significantly underestimated. Compliance risks for trademark transfers completed based on such valuations are particularly noteworthy.

(2) Operational risks

For the transfer of registered trademarks, the Trademark Office only requires the transferee to come to the processing hall and does not need to submit a written trademark transfer contract. In the entire transfer procedure, the only legal document that reflects the transferor's intention is the "Transfer Application/Registered Trademark Application" signed by the transferor. Such an operation setting may cause the registered trademark to be "transferred" without the trademark owner's knowledge, that is, the transferee or a third party uses a counterfeit signature to illegally transfer the trademark.

(3) Contract risks

1. One bid, two sales

2. Free transfer

3. The trademark to be transferred is defective

4. Acquisition in good faith is not applicable

So, to buy and sell trademarks, you need to find the right platform, Trademark Transfer Network, with sixteen years of trademark transfer experience. Professional team, safety and security.