In Gross Assignment: Legal Definition and Consequences Explained
Definition & Meaning
An in gross assignment refers to the transfer of a trademark without the accompanying goodwill that typically comes with it. This type of assignment is generally considered invalid and can lead to the abandonment of the trademark. When a trademark is abandoned due to an in gross assignment, the assignee loses the benefit of the assignor's earlier use date, which is crucial for establishing priority. Consequently, the assignee must start anew with their own first use date to claim priority for the trademark.
Legal Use & context
In gross assignments are primarily relevant in trademark law. They are often discussed in the context of intellectual property rights and can affect how businesses manage their brands. Users may encounter this term when dealing with trademark assignments, especially if they are considering acquiring a trademark. Utilizing legal templates from US Legal Forms can help users navigate the assignment process correctly.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company sells its trademark to another business without transferring the associated customer relationships or brand reputation. This is an in gross assignment, and the new owner risks losing the trademark if it is deemed abandoned.
Example 2: A startup acquires a well-known brand's trademark but does not maintain the brand's existing goodwill. If the trademark is abandoned, the startup must establish its own use date to claim rights to the trademark. (hypothetical example)