When purchasing a business, it’s important to understand exactly what you are acquiring — and that includes the business’s goodwill and intellectual property. A key component of goodwill is often one or more trademarks, which represent the brand recognition and reputation that give the business its value. Ensuring those trademark rights are properly protected and transferred is essential to preserving that value.
Why Trademark Due Diligence Matters
When we represent clients in a business purchase, we conduct a brief trademark assessment as part of our due diligence process. This helps identify whether the business is using any trademarks and whether those trademarks are properly owned and maintained.
If trademarks are in use, we can investigate:
- Registration status – whether the trademark is registered in Canada or elsewhere.
- Availability and registrability – if unregistered, whether it is available for registration and free of legal barriers.
- Proper and consistent use – whether the trademark is used in a way that matches any registration and maintains its validity.
Transferring and Licensing Trademarks
At the closing of the transaction, trademark rights should be formally transferred to the purchaser. We can prepare and file the necessary assignments and, where appropriate, prepare licensing agreements to govern ongoing use between related entities. Taking these steps ensures the brand continues to be properly protected and that ownership is clear from both a legal and commercial standpoint.
Protect the Brand You’re Buying
Bricolage Legal helps business purchasers identify, secure, and protect trademark rights as part of their acquisition. If you’re considering buying or selling a business, contact us or set up a free 20 minute call to ensure the brand value you’re acquiring is fully protected.