Negotiating the purchase or sale of a trademark is a very strategic process, because a trademark is not just a name/logo — it's reputation, goodwill, and market recognition.  Here’s a practical guide:

Preparation: Know What You're Buying or Selling

Before you even start talking numbers:

Due Diligence:

• Check ownership: Is the trademark registered? Pending? In use?
• Confirm no disputes: Search for ongoing litigation, oppositions, cancellation proceedings.
• Scope: What goods/services does the trademark cover?
• Geography: Is it registered in India only? Other countries?
• Financials: How valuable is the brand (sales, recognition, customer base)?

Valuation: How Much is it Worth?

Valuing a trademark is subjective, but factors include:

• Strength of the mark (distinctive vs descriptive)
• Sales/revenue linked to the brand
• Cost saved by not building a brand from scratch
• Market presence and reputation
• Domain name/social media accounts included?

Key Terms to Negotiate

These are the important points to cover:

Negotiation Tips

• Verification of the trademark: Seller is the actual owner, and the trademark is litigation-free.
• Creative Payment Terms: If a high upfront payment is tough, propose staged payments linked to brand performance.
• Bundle Deals: Suggest buying related trademarks or domains together for a better price.
• Non-Compete Clause: Always ask for a non-compete agreement that prevents the seller from starting a similar brand.
• Deadline Pressure: Set realistic but firm deadlines to close the deal — this avoids endless back-and-forth.

Quick Checklist

✔ Conduct Due Diligence
✔ Agree on Value & Terms
✔ Draft Strong Assignment Agreement
✔ File with Trademark Office
✔ Announce and Transition Brand

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