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.
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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.
Key Legal Elements
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)
Comparison with Related Terms
Term
Definition
Key Differences
Assignment
The transfer of ownership rights of a trademark.
Can be valid if goodwill is included.
Abandonment
The loss of trademark rights due to non-use.
In gross assignment can lead to abandonment.
Common Misunderstandings
What to Do If This Term Applies to You
If you are considering an assignment of a trademark, ensure that it includes the associated goodwill to avoid complications. If you suspect an in gross assignment has occurred, consult with a legal professional to explore your options. You can also utilize US Legal Forms' templates to assist in drafting a proper assignment agreement.
Quick Facts
In gross assignments are generally invalid.
They can lead to trademark abandonment.
The assignee must establish their own priority date.
Key Takeaways
FAQs
An in gross assignment is the transfer of a trademark without its associated goodwill, making it generally invalid.
If a trademark is abandoned, the assignee loses the benefit of the assignor's earlier use date and must establish their own.
Ensure that any trademark assignment includes the associated goodwill to maintain validity.
