Trademarks are intellectual property which can be sold just like all other kinds of tangible and intangible property. Their ownership can be transferred, including the products that they each represent.
In UAE, trademarks are registered and enforced with the UAE Ministry of Economy or MOE, where the owners of the trademark are also listed. There’s a couple of elements of a business which can be registered with the MOE. Trademarks can also be sold on their own or with the acquisition of the business.
So, should you buy or sell a Trademark in UAE?
Trademarks registered in UAE are the identify, brand, or soul of companies which take years in establishing. The decision in selling or acquiring a trademark carries the weight of its identity with it. If you want to transfer trademark rights to an individual or another business entity, you will give up your entitlement entirely. Licensing, on the other hand, will hand over someone else rights in utilizing a trademark.
Be wary of dead trademarks which are not considered as distinguished by the MOE. As soon as trademarks are deemed dead, companies and individuals are able to claim them and use them for their own commercial purposes. Original trademark holders have no rights with respect to dead trademarks. They also won’t be able to use them or seek protection for them – much less sell them when they are already claimed by another entity or person.
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Steps to Sell Your UAE Trademark
Follow these steps to sell your trademark and trademark rights in UAE:
- Identify your potential buyer
Always prioritize identifying the potential buyer first. A lot of possible buyers can include your major competition, the employees of your business, and other parties that are looking into entering the marketplace and gaining an edge in the market. Each of the aforementioned parties can be interested with selling the products that are covered under your trademark. Sale of your trademark in UAE can include the business’ physical assets e.g. equipment, machinery, inventory, and cash. The actual ownership transfer for trademarks registered with the UAE Ministry of Economy requires written documentation.
Remember to seek the assistance of legal advocates in the drafting of any legal document. In addition, signing of sale documentation must be witnessed and notarized by a public notary in Dubai.
- Find your potential buyers
If you’re unable to find the suitable buyer amongst your competition or employees, then finding a buyer of your trademark will be quite difficult. IF you have waited for months for a buyer and you still don’t have any luck, it’s possible to take your mark to an auction site or trademark exchange. Just make sure that you have all of the documents that prove your ownership to a mark. You can provide details such as the description and sample of the mark and your asking price. If there’s someone who is interested in acquiring your trademark, don’t forget to give your contact details to the interested party.
- Create a Trademark Assignment Agreement
It’s necessary to prepare a trademark assignment agreement in UAE. The agreement has to be signed by all parties involved in the midst of a public notary in Dubai, UAE. You should make sure that all of the details in relation to the trademark ownership sale are accurate, including the buyer’s name, contact information, address, and all other important information.
It’s also important for the agreement to clearly indicate the sale’s details, including any transfer fees, who will pay the transfer fees, who’s responsible with the renewal of trademark rights, and the sale price among others. It’s necessary that the trademark assignment agreement in UAE not only be notarized by a reputable notary public in Dubai but also verified with the notary with respect to the signatories’ identity.
If a partnership is the owner of trademark rights, tehn1 there will be more than one signatory required for the trademark sale. You can consult with a public notary in Dubai with regards to the rules and policies regarding legalization of a trademark assignment agreement. This step is absolutely necessary to ensure the sale is legal and valid in the eyes of the law.
You should read: Frequently Asked Questions About Notary Public In UAE
Legalization of a Trademark Sale in UAE
Selling a trademark in UAE can be seen as a loss of a valuable and lucrative identity of a business which took years in building. But, there are also benefits to a trademark sale, primarily a huge profit! When you finally decide to transfer trademark ownership in UAE through a sale, follow the steps we mentioned earlier to ensure the sale of one of your valuable business assets is legal.
If you want to know more about legalization and notarization in UAE for legal contracts such as trademark assignments, call us here in Notary Public Dubai!