Joint Ownership of Trademark: All you need to know

The general definition of “joint” means when two or more things are combined, and the word “ownership” is used when a state of an exclusive right exists over something. When combined, joint ownership concerning business represents the situation where two companies come together to share their rights and properties.

In terms of properties, all types of assets can be combined by the companies, including Intellectual Property Rights. Regarding trademarks, joint ownership can exist where multiple entities jointly own a trademark.

This article specifies the provisions related to joint ownership of the trademark.

What provisions does the Act deal with Joint Ownership of a Trademark?

Section 24 provides where the joint proprietors of the trademark are:

• The mark shall be registered in favor of both parties.
• Trademarks shall be held and used by both parties.
• No party alone shall take absolute ownership of the trademark.
• The parties shall use the trademark with the product/service they are connected to.
• The parties shall not use the trademark against each other where joint ownership exists.
• The provisions under the Act shall apply as if the right is vested in a single person.

For the application for registration of trademarks under Section 18:

• The person or entity willing to get their mark registered shall apply in writing to the Registrar in the manner as specified by the Act.
• The parties shall file an application in the Trade Marks Registry office within whose jurisdiction the principal place of business of the first-mentioned applicant is situated. (The first mentioned applicant refers to the applicant whose name appears first in the application for registration).
• The details of the place specified in the address for services in India shall be considered where the joint applicants do not carry out business in India.

What benefits are associated with Joint Ownership of a Trademark?

Joint ownership of rights and properties brings along several benefits such as:

• All parties with joint ownership shall be eligible to use the mark for goods/services provided under the trademark.
• A single party shall not be allowed to gain full control of the registered trademark or the goodwill generated from the use of such a mark, bringing both parties at par in terms of rights and benefits.
• The provision of joint ownership of a trademark preserves goodwill while the ownership exists and after it is dissolved. As in dissolution, no single owner can claim total ownership of the mark. All rights related to registered trademark vested in joint parties will dissolve.

Apart from the benefits mentioned above, joint ownership can also allow the business to grow more, capture more market share and retain the customers' trust.