How Trademark Escrow Works

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A trademark is a graphic, word or symbol which is legally registered to represent a brand or company. If something is trademarked, another company is unable to use it legally to promote their product. A well-known fast food chain has a yellow letter as their trademark. To see this logo used to advertise another brand or product would contravene trademark laws.

A trademark is associated with a particular business and therefore cannot be bought and sold directly, but the possession of a trademark can be reassigned if the business is transferred. If you have legally registered a trademark, it is considered as Intellectual Property of an organization and when looking to purchase or transfer a trademark to another company, utilizing the services of will help with the transfer and protect both the buyer and the seller.

Once the transfer of a trademark has commenced a contract is signed with which will define the terms and conditions of all parties which must be met before the exchange of any funds will take place; once a buyer has agreed to purchase the trademark, assignment paperwork must be filed to inform the U.S Patent and Trademark Office (USPTO) of the change in ownership.

Using as a third party holding account for any monies associated with the transfer or sale of a trademark offers benefits to both the buyer and seller. The seller will have security that no matter what, the sale will go ahead, and the funds will be released, and the buyer will have security that the trademark rights will not be sold to another party if a better offer is made. Often the process to transfer a trademark is lengthy due to government and legal protocol that has to be followed which means that a substantial amount of time can pass before the trademark transfer process is complete.

If a dispute should arise between the buyer and seller while the process is in progress, an representative will step in as a third party mediator and will resolve the dispute while ensuring that both parties honor the terms and conditions that they agreed to when the initial trademark transaction began.

It is vital that a third party such as is used when selling or transferring a trademark as part of a business sale. It is a lengthy process and many contractual obligations have to be met by both parties. To guarantee that the seller will receive their funds, and the purchaser won’t renege on the original contract, will hold everyone involved accountable. Once all paperwork has been completed, and contractual obligations have been met by both parties, funds for the trademark purchased will be released by

If you are about to become involved in a trademark sale either as a seller or purchaser, then contact today to make full use of our services.

Frequently Asked Questions

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