An assignment in gross refers to the transfer of a company's trademark without transferring the associated goodwill of the business. This means that while the trademark itself is sold or assigned, the reputation and customer relationships tied to that trademark do not go along with it. Courts often determine that such an assignment does not convey any significant value to the party receiving the trademark.
This term is primarily used in intellectual property law, particularly concerning trademarks. An assignment in gross can arise in various business contexts, such as mergers, acquisitions, or sales of specific assets. Users may encounter forms related to trademark assignments, which can be managed independently with resources like US Legal Forms, providing templates drafted by experienced attorneys.
Here are a couple of examples of abatement:
Example 1: A company sells its trademark for a specific product line to another business. However, the original company retains its customer base and reputation, meaning the new owner of the trademark does not benefit from existing goodwill.
Example 2: A small business owner decides to sell their brand name but keeps the customer relationships and business operations intact. This transaction constitutes an assignment in gross. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Key Differences |
|---|---|
| California | Specific regulations on trademark assignments may require additional disclosures. |
| New York | Trademark assignments must be recorded with the state to ensure enforceability. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Assignment | Transfer of rights or property from one party to another. | Can include goodwill; assignment in gross specifically excludes it. |
| Licensing | Granting permission to use a trademark without transferring ownership. | Licensing allows continued ownership, while assignment in gross transfers ownership. |
If you are considering an assignment in gross, it is essential to:
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An assignment in gross transfers only the trademark, not the goodwill associated with it, while a regular assignment includes both.