Difference between Trademark Assignment and Trademark Licensing, Trademark Assignment. Trademark Licensing , What is Trademark Assignment and Trademark License, Ebizfiling

Trademark Assignment and Trademark Licensing – What is the Difference?


One of the major differences between Trademark Assignment and Trademark licensing is that the assignment of a registered trademark is a change in ownership. On the other hand Trademark licensing is the transfer of certain rights (in a limited manner) of a registered trademark while maintaining ownership of the trademark. First let’s, take a look at “What is Trademark Assignment and Trademark License?” and the Benefits of Trademark License and Trademark Assignment, and then move on to the differences.

What are Trademark Assignment and Trademark License?

Trademark Assignment: According to the Trade Mark Act of 1999, the person entered in the trademark register as the proprietor of a trademark has the authority to assign a trademark and to give an effectual receipt for any consideration for such Assignment. The assignment is the complete transfer of ownership from the trademark owner to a third party. Trademark assignment is classified into two types:

  • The assignment without goodwill – the assignor restricts the assignee with the condition that the assignee cannot use the trademark assigned with the goods and services that the assignor already uses.
  • Assignment with goodwill – the assignor transfers the rights and value of the trademark associated with the product to the assignee.

Trademark License: Trademarks are valuable business assets that protect your brand. Licensing your trademark can help your business strategy by expanding your brand’s reach into new markets and territories. In trademark licensing, the owner of a specific trademark can grant a third party the limited right to use the trademark in exchange for a royalty while keeping ownership with himself/herself.

Benefits of Trademark Assignment and Trademark License

Trademark Assignment:  

  • Every trademark assignment is recorded in the registry records and serves as proof of ownership of the trademark.
  • It is quicker than registering a new brand name.
  • Both parties benefit because the assignor receives a reasonable price for the brand name while it is well-known in the market, and the assignee benefits from the already-established brand.


Trademark License:  

  • It helps in the expansion of the brand’s reach.
  • It has the potential to improve business life and operations.
  • The mark has become more popular and well-known as a result of licensing.
  • The company’s workload is decreasing.

What is the Difference between Trademark Assignment and Trademark Licensing?

  • A trademark assignment is a transfer of ownership of the trademark registration. Whereas in licensing, the original owner retains ownership and proprietary rights to the trademark, but only a few limited rights to use the brand are granted to the third party.
  • The assignment agreement must be in writing. Licensing does not have to be in writing.
  • An assignment may be entirely or partially; a licence grants you rights for a specific period of time.
  • An assignment is not time-sensitive; ownership has been transferred. Licensing is only valid for a certain amount of time.

Summing Up

Both trademark assignment and licensing are important terms, which necessitate careful planning. The creation and use of a brand are involved in trademark licensing and trademark assignment. All of these are available to the proprietor and are effective management methods.



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Author: zarana-mehta

Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.

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