LegalVision’s Trade Mark Essentials Guide provides valuable information for any business looking to register or enforce a trade mark. <\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n Each company in a group is its own legal entity. Groups can set up specific structures from the start to help manage intellectual property<\/a> risks. For example, shareholders might own a parent or holding company, which in turn owns the operating companies. The operating companies usually handle trading, while the holding company owns key assets such as the group\u2019s intellectual property.<\/p>\n\n\n\n This setup can help protect valuable intellectual property, like trade marks, by keeping them within the holding company. If an operating company faces financial problems or creditor claims, the holding company\u2019s assets are usually kept separate and protected.<\/p>\n\n\n\n It is sensible to seek legal and tax advice before setting up a company group structure like this. This is important to ensure that the structure is fit for purpose and tax efficient. <\/p>\n\n\n\n It can be common for a company to want to use a trade mark<\/a>, such as a logo owned by another company in the group, for branding purposes or other reasons. A key question is whether a company needs a formal written licence to use a trade mark registered to another company in the group.<\/p>\n\n\n\n Under law, a licence of a registered trade mark must be in writing and signed by, or on behalf of, the trade mark owner to be legally effective. Trademark infringement happens when someone uses a mark without the owner\u2019s consent.<\/p>\n\n\n\n If a group company can show it has permission to use the mark, that consent might prevent an infringement claim, even if the agreement was informal. However, relying on informal consent can create uncertainty. A written agreement is important as it serves as key evidence if the arrangement is ever questioned and can clarify: <\/p>\n\n\n\n In practice, a third-party buyer or investor looking at the licensee company will usually expect to see a properly documented licence during due diligence. If the licensee company is unsure about how it can use the mark and uses it incorrectly or inconsistently, this can weaken the trade mark\u2019s protection.<\/p>\n\n\n\n It is strongly recommended to have a written intercompany trade mark licence, even if the group is fully owned by the same people.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nConsidering IP Protection in Group Companies <\/h2>\n\n\n\n
Is a Licence Required to Use Trade Marks Within a Group?<\/h2>\n\n\n\n
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