A brand is not just a name or logo; it is an important asset that builds consumer trust and a company's market competitiveness.
And the right to legally protect these brands is trademark rights.
Recently, inquiries regarding trademark rights transfer have been steadily increasing due to reasons such as expansion of online brand business, conversion to corporation, investment attraction, and business transfer.
Today, we will summarize key matters that must be checked in practice, along with representative situations in which trademark rights transfer is necessary.
What is trademark rights transfer?
Trademark rights transfer refers to the process of transferring trademark rights or trademark application rights held by the existing rights holder to another individual or corporation.
In practice, the following expressions are sometimes used together.
- trademark transfer
- Transfer of trademark title
- Trademark transfer registration
- Transfer of brand rights
As a trademark right is a registered right, the effect of transferring the right is not completed through a simple contract, and a transfer registration process at the Korean Intellectual Property Office is required.
Additionally, the procedures and documents may vary depending on whether it is a registered trademark or a trademark pending application.
Typical situations where trademark rights transfer is necessary
Trademark rights transfer is not a simple change of name but a legal procedure for transferring brand assets.
This is especially common in the following situations:
① When converting from an individual business to a corporation
In the early stages of brand business, there are many cases where trademarks are applied for and registered in the name of the representative individual.
When establishing a corporation or attracting investment, brand rights are often transferred to the corporation's name.
② In case of transferring the brand business itself
When transferring brand-centered businesses such as online shopping malls, cosmetics brands, or food brands, trademark rights are often transferred along with them.
If the transfer of trademark rights is omitted during this process, problems may arise where the actual right to use the brand is separated from the legal rights.
③ When the shopping mall operator changes
In practice, there are many cases where a corporation operates a shopping mall, but trademark rights are registered in the name of the individual representative.
This structure can act as a risk during the platform entry, investment review, and contract conclusion process, so it is important to organize rights relationships in advance.
④ In case of resolving co-branding rights
After operating a joint business or joint brand, a situation may arise in which shares are liquidated or rights are concentrated in a specific right holder.
Joint rights relationships need to be clearly organized as they may lead to disputes during future brand operations or licensing agreements.
⑤ Investment and M&A process
Recently, trademark rights themselves are often used as an important factor in evaluating corporate value.
Especially in brand-based businesses, if the relationship between trademark rights is unclear, it can be a problem during the investment or merger and acquisition (M&A) process.
Things you must check when transferring trademark rights
When transferring trademark rights, it is important to thoroughly review the following matters in advance.
① Check the scope of registered trademark
Trademark rights are established based on designated goods and designated services.
Therefore, it is necessary to check whether the actual scope of business matches the scope of registration, and it is also necessary to review whether the structure is such that only some types of products are transferred.
For example, if it is a cosmetics brand and only some products are transferred, the scope of future brand operations may be limited.
② Organizing rights relationships with actual users
In practice, it often happens that the brand operator and trademark holder are different.
In particular, the structure below may lead to future risks.
- If a corporation operates a brand, but the trademark rights are in the name of the representative individual
- When the ownership of rights between the manufacturer and distributor is unclear
- If the rights relationship is not resolved after the end of the joint project
These issues can become important issues in the process of investment, platform entry, and licensing agreements.
③ Check whether it is a ‘co-owned trademark’
If the trademark rights to be transferred are 'shared' by several people rather than one person, transfer registration may be rejected without the consent of all co-owners. Therefore, when signing a transfer contract, you must check whether the shares are shared and whether all co-owners agree.
④ Check whether the transfer registration has been completed at the Korean Intellectual Property Office
Just because a trademark transfer agreement is concluded does not automatically complete the transfer of rights.
You must go through the transfer registration process with the Korean Intellectual Property Office for the legal transfer of rights to take effect.
In practice, there are cases where the registration process is omitted after signing a contract, so caution is required.
Trademark rights transfer procedure
Trademark rights transfer generally proceeds through the following procedures.
STEP 1. Write a transfer agreement
The transferor and transferee agree on the transfer of trademark rights and draw up a contract.
The contract typically includes the following:
- Trademark registration number and classification
- scope of transfer
- Transfer price
- Party information (name, address, patent customer number, etc.)
- signature or seal
In particular, it is important to clearly state whether it is a partial share transfer or a transfer of all rights.
STEP 2. Application for registration of rights transfer at the Korean Intellectual Property Office
After signing the contract, apply for registration of transfer of rights to the Korean Intellectual Property Office.
At this stage, a correction process may occur if submission documents are missing or have formatting issues.
STEP 3. Rights transfer registration completed
Once the patent office examination is completed, the transfer of rights is registered.
It usually takes a few days to two weeks to process, but it may vary depending on the status of the documents and whether or not they have been corrected.
Once the transfer is registered, the transferee is formally recorded as the owner of the design right.
Required documents and costs for trademark rights transfer
- Required Documents
Generally, the documents below are required.
① Rights transfer registration application form
② Transfer agreement or transfer certificate
③ Transferor’s seal certificate (within 6 months from the date of issuance)
④ Consent form, where a co-owner's consent is required
- registration fee
Professional fees: Vary by firm.
Government fee (per case):
- Registration fee: 40,000 won
- Local tax: 21,600 won
- Stamp duty: Stamp duty varies depending on the transfer price in the contract.
Trademark rights are important intangible assets that are directly linked to a company's brand value.
Especially in online brand businesses or platform-based businesses, trademark ownership relationships can have a significant impact on business stability and investment value.
Therefore, rather than approaching the transfer of trademark rights as a simple administrative procedure, it is advisable to proceed by considering the rights relationship review and business structure together.
If you need to review trademark transfer, trademark title transfer, or brand rights transfer, please consult with an expert to find out the correct direction.
This article reflects the information available when it was published. Contact us to discuss your circumstances.