IP Tech Knowledgy
Trademarks Should Be Owed by One Entity Only – Not Jointly
Try to avoid having more than one person or entity own a trademark. The basis of trademarks rights is the ability of a party to control the quality of the product or service offered under the brand. If two or more entities are owners, proper quality control could be impaired. Instead, individuals should form an LLC to own the mark, and the company documents can determine who has the oversight of the trademark and the quality of the goods and services. Two people or companies partnering in a branded project should create a formal joint venture or company to own the mark, and then license back to each partner the right to use the mark. Having this “unity of control” also helps avoid would-be infringers arguing that they too can use a similar mark.