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Trademark Registration

Who owns the mark, and what happens when a trademark licence breaks down?

Trademark ownership disputes commonly arise between business partners who separate, between a company and the founder who registered the mark personally, or between a brand owner and a distributor who registered it locally. Licensing disputes carry a risk specific to trademarks: a licence without adequate quality control can jeopardise the validity of the mark itself, so an unpoliced licence damages the licensor twice.

What to do next

  1. Establish who actually owns the registration and who used the mark

    The register shows the recorded owner, but rights flow from use as well. A mark registered by an individual while the business used it, or by a distributor in their own name, produces exactly the dispute that is hardest to unwind later.

  2. Check the licence for quality control

    Trademark licences require the licensor to control the character and quality of the goods or services. A bare licence without that control can render the mark vulnerable to attack. This is the provision most often missing from informal arrangements between related businesses.

  3. Deal with post-termination use immediately

    A licensee or franchisee continuing to use the mark after termination is infringing, and delay weakens the position. Send notice promptly and document continued use with dates.

  4. What to prepare

    The registration and its recorded ownership history, the licence or franchise agreement, evidence of first and continuous use by each party, quality control records, any assignment documents, and correspondence about ownership expectations from the outset.

  5. Possible legal pathways

    A confirmatory assignment, an application to correct or expunge a registration obtained by someone not entitled to it, proceedings for infringement or breach of licence, or a negotiated coexistence where both parties have genuine claims. Where a distributor registered the mark abroad, local counsel is usually required.

Frequently asked questions

Our founder registered the mark personally - is that a problem?

It creates a mismatch between the registered owner and the business using the mark, which surfaces during any financing or sale. Fix it with a confirmatory assignment while relations are good.

Our distributor registered our brand in their country.

Common and difficult. Some jurisdictions allow challenge on the basis of bad faith or agency relationship. Local counsel is generally required, and prevention through your own filing is far cheaper.

Can a licence invalidate my trademark?

A licence without adequate quality control can leave the mark vulnerable. Control provisions are not boilerplate - they protect the asset.

They kept using the mark after we terminated.

That is infringement. Notify promptly and document the continued use; delay weakens both the claim and any application for urgent relief.

Which court hears these?

The Federal Court or a provincial superior court in Canada. Registration challenges run through the trademarks office.

This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.

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By submitting, you agree to be contacted about your inquiry. This is not legal advice and does not create a lawyer–client relationship.

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Intellectual Property & Commercial Law counsel in Johannesburg

Johannesburg, Gauteng
  • Intellectual Property
  • Trademark Registration
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Mumbai, Maharashtra
  • Intellectual Property
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Go deeper

Guides, Forums & Where This Is Decided

Background reading and the bodies that hear trademark registration matters.

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Where this is decided

All courts & tribunals

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