Many people often get confused about whether to file a trademark in their name or company name. Making this particular decision shouldn’t be an issue if the business is owned or run by an individual. In this case, whether the trademark is filed or registered in a personal name or company name is left for the owner or business to decide.
However, if the company is owned or run by more than one person (partnership), it is advisable to Register trademark in the UK in the company’s name. Always remember to run partnership businesses only after you have set-up a separate business or company.
If an individual plan to have shareholders and investors in the future while he/she retains the total ownership of the trademark, such individual needs to register the trademark in his/her personal name. In a situation where a trademark is assigned to the company’s name, the trademark will die as soon as the company or firm runs out of money or folds up. On the other hand, if the trademark is owned by an individual, the trademark will continue to exist even if the company dies. The trademark will only die if the owner dies and he/she didn’t leave a will or failed to appoint a trustee.
What are the advantages of filing a trademark under a company name?
If a company owns a trademark, the company will enjoy the following benefits:
- The company can license or transfer the trademark to another party or business.
- The trademark adds value to the business because trademarks are quantifiable assets.
- As the value of the trademark increases, the value of the business also increases. Thus, investors and potential purchasers will be interested in buying your company assets anytime you decide to sell the company.
- The company can use the trademark as security interests in financial transactions.
- During business negotiations, the company can use the trademark as leverage.
- The company owning a trademark can enforce its trademark rights.
Another thing to consider when deciding whose name should be used to file for a trademark is your plan to register with Amazon Brand Registry in the future. If you intend to register with Amazon Brand Registry as an Amazon Seller, the name used in opening your Amazon Seller account should be the same with the name used in filing your trademark. The advantage of doing this is that it will be easier for you to prove you own your trademark and Amazon Store whenever there is a dispute or your listing is hijacked.
If you’re filing a trademark application based on intent to use, such trademark cannot be assigned to another party, company or business. The major reason for this particular provision is to prevent trademark trafficking and ensuring that a trademark is assigned together with a real business or goodwill.
Owing to this, it is best to file an intent to use application under the company name instead of filing under the name of an individual or person.