A brand is a distinctive element that allows customers to identify a company, service offering or product.
What is the purpose of registering a trademark?
Remember that trademark protection gives its owner a monopoly on the products or services covered by its registration (see our article: How to protect your trademark? ) and represents a strong identity that a business manager can rely on.
Registering a trademark in the name of the creator, an individual or in the name of a company is not a trivial choice and has numerous legal consequences.
It really depends on the goal the creator has and the independence he has within his company.
Thus, the manager has two options for registering his trademark:
- register your trademark as an individual.
- register your trademark in the name of the company.
Register your trademark as an individual
Advantages of registering a trademark in your name
The manager remains the sole owner of his brand, which will then be easier for him to promote and resell to his company in the event of the arrival of new partners or investors.
He also retains ownership if he is subsequently removed from running his company. The manager can then continue to manage his brand even if he is no longer part of the company.
Another advantage : when he licenses the use of his brand to his company, the manager can provide for the payment of royalties in his favor, which can constitute a significant source of additional income.
Disadvantages of registering a trademark in your name
In the event of litigation, only the brand owner, that is, the manager, will be able to file a claim for infringement. However, since the use of the brand is provided by the company and not by its owner, the amounts claimed for infringement will necessarily be less than if the brand were owned by the company.
Register your trademark in the name of the company
The advantage of registering a trademark in the name of a company
Registering a brand in the name of the structure reassures potential investors, especially in innovative sectors.
The advantage of this solution also lies in the compensation of damages corresponding to the exploitation of the brand.
Disadvantages of registering a trademark in the name of a company
When a manager is removed from the structure he created, he can no longer exploit the brand owned by the company, even if it's his last name.
If the company has not yet been created, can be deposited by the creator(s), individuals on behalf of currently being created company X. Once the company is created, it will be necessary to notify INPI by sending it a Kbis statement of the new structure.
Conclusion
It should be noted that Neither option is irreversible. In fact, the situation in the company and its leader changes regularly over time.