What does the right to the use of a trademark include?
The use of a trademark means applying it to goods, letter heads, documents, clothing, equipment, and using it in advertising, and so on. An important type of the use of a trademark is to place it in the enterprise’s domain.
Can a trademark registration produce a profit?
Yes, it can produce it under appropriate circumstances. It is clear that every trademark registered in Ukraine or in another country has its own value. Therefore, a trademark can be simply sold (exclusive intellectual property rights to it can be transferred to another person), or permission for use of it shall be granted by entering into a corresponding license agreement or complex franchise agreement. A royalty is a payment for using a trademark.
At the same time, there is a possibility of using the trademark in order to reduce tax obligations (so-called tax planning): taxes are reduced due to royalty payments.
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