Which is more Beneficial – Trademark owned by Promoter Or Company? Let’s Understand!

calendar30 Oct, 2020
timeReading Time: 4 Minutes
Trademark owned by Promoter Or Company

The company can apply for a trademark application as owner of the trademark or Trademark owned by Promoter. The ownership can be decided by mutual understanding between the promoters and the management of a company. Consequently, the question arises that which acts more beneficial in between Trademark owned by Promoter or a trademark owned by a company. The trademark owned by a company is more beneficial than the one owned by the promoter to build the brand name for the company.

Trademark Owned by Promoter

The promoters of a proposed company may apply for a Trademark in its own name (applicant). One cannot file a trademark application in name of the Company which is only in form of proposed company. However, once the trademark is registered, an applicant can assign the rights for using a Trademark in name of the Company for business purpose.

Also, one has to keep in mind that an application made to register the brand name, therefore the same name can be approved by the MCA without any hurdle for a Proposed Private Limited Company. Thus, one can count this as the major advantage of getting the Company Trademark Registration.

Importance of Trademark owned by Promoter

Once the online trademark registration is completed, the rights can be assigned by an owner to the company for usage of trademark in business purpose. A trademark application proves to be big support for name approval for a company registration. Thus, it becomes an important benefit of trademark registration before incorporating a company. Apart from protecting the brand name from upcoming competitors and threats, the trademark owned by Promoter will be helpful for future establishing company.

Promoters get assured by trademark registration, as no other person can make an unauthorised usage of the brand name. Once the trademark is applied for a Company, it can start putting up for ™ or ® symbol which is an indicative signal of ownership for all the competitors as well as customers who wants to approach an entity. Further, the company already incorporated can receive the Trademark in its own name on the basis of the Goodwill[1] earned and will also get the protection against an infringement.

Read our article:How to Identify the Jurisdiction of Trademark Registration in India

Which is more beneficial as Trademark owned by Promoter OR Company?

If an ownership rights are held by the person other than a LLP or company, in whose name goods or services covered under respective class of trademark is dealt, the third party will not be able to present any documental proof in own name. It has been presented in the company’s name and not in the name of promoters or other parties. Hence, all the goodwill built during a stage of application and can be claimed by the company only.

While presenting the documents at the time of hearing or other stage of trademark application, in lack of documentation proof in name of third party may lead to cease a trademark application from further procedure i.e. the trademark applied can get abandon status. However, an agreement of a promoter or a third party with company will be able to rectify the issue raised.

The Trademark is the valuable property for the person or entity putting efforts to build the brand name. Prime concern for filing a trademark registration application is name of applicant in whose name the ownership will lie of the proposed trademark. The question of ownership rights does not arise when the person is a sole party interested to build the goodwill in the brand name. However, the combined efforts of group of persons may have an issue regarding the ownership and pecuniary benefit out of a trademark.

A Company or Limited Liability Partnership enjoys a separate existence from its owners and hence it will also hold assets in its own name without interference of rights by the owners or promoters. The promoters hold highest beneficial interest for building the brand of company or LLP concerned.

Three Main benefits as Trademark assigned by a Promoter to Company

Trademark assigned by a Promoter to Company

Factors to be considered to Claim Ownership

  • The person whose name is entered as an applicant must have legal existence, i.e. nature existence or arising out of course of law.
  • The name of an applicant will be published on the portal of the trademark registry.
  • An agreement made between the company and third party allowing third party to claim an ownership.
  • When a trademark is owned by the third party, the company then cannot claim an ownership. Therefore, the company cannot include a trademark in the assets and cannot claim any benefits and goodwill that has built.
  • In case, trademark is owned by the third party, an agreement made may be modified with the new party or a whole new agreement can be made, while assignment or sale of the trademark.
  • The third party must be liable for legal expenses that has incurred in respect to the trademark application and its protection. For any trademark infringement or suit, third party can be made liable and responsible for its future actions.


The owner of a trademark will held responsible for any matter related to trade name, trademark registration procedure or other allied matter. When one claims for an ownership, the risk of a property also passes with it. Feel free to connect with our experts at Corpbiz. They help you and suggest you all the ways and formalities related issues faced during the Trademark registration.

Read our article:Can Trademark Registration Impact Your Business? Let’s Figure it Out!

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