The concept of trademark right freezing: the pledgee can apply to the court to freeze the trademark right, and then discount, auction or sell the exclusive right to the registered trademark as a legal preservation measure. Trademark rights will be frozen when the debtor fails to pay due debts or when the circumstances agreed by the parties to realize the pledge occur.

Legal Basis

Article 444 of the Civil Code

Registered trademark rights, patent rights, copyrights and other property rights in intellectual property rights In the case of a pledge, the right to pledge shall be established when the pledge is registered.

After the property rights in intellectual property rights are pledged, the pledgor shall not transfer or permit others to use it, unless the pledger and the pledgee agree through negotiation. The price obtained by the pledgor from transferring or permitting others to use the property rights in the pledged intellectual property rights shall be paid off the debt in advance or deposited to the pledgee.

Article 436

If the debtor performs its debt or the pledger pays off the guaranteed creditor's rights in advance, the pledgee shall return the pledged property.

If the debtor fails to perform the due debt or the situation agreed by the parties to realize the pledge occurs, the pledgee may agree with the pledger to discount the pledged property, or may have priority in receiving the proceeds from the auction or sale of the pledged property. compensation.

If the pledged property is discounted or sold, the market price shall be referred to.