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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Listmates,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Client filed ITU application in name of XYZ, Inc. (a foreign corporation)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Mark has not been used yet.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Client has now formed XYZ, LLC (a US based LLC).<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Client wants to know if it can assign the ITU application from the Inc. to the LLC.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">The starting point is no, but Im exploring the exception in 15 USC 1060(a)(1):<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span class="num"><b><span style="font-family:"Verdana",sans-serif;color:#333333;background:white">(a)</span></b></span><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><a name="a_1"></a><span class="num"><b><span style="font-family:"Verdana",sans-serif;color:#333333">(1)</span></b></span><span style="font-family:"Open Sans",sans-serif;color:#333333"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-family:"Open Sans",sans-serif;color:#333333">A registered mark or a mark for which an application to register has been filed shall be assignable with the good will of the business in which the
mark is used, or with that part of the good will of the business connected with the use of and symbolized by the mark. Notwithstanding the preceding sentence, no application to register a mark under <a href="https://www.law.cornell.edu/uscode/text/15/1051#b"><span style="color:#001C72">section
1051(b) of this title</span></a> shall be assignable prior to the filing of an amendment under <a href="https://www.law.cornell.edu/uscode/text/15/1051#c"><span style="color:#001C72">section 1051(c) of this title</span></a> to bring the application into conformity
with <a href="https://www.law.cornell.edu/uscode/text/15/1051#a"><span style="color:#001C72">section 1051(a) of this title</span></a> or the filing of the verified statement of use under <a href="https://www.law.cornell.edu/uscode/text/15/1051#d"><span style="color:#001C72">section
1051(d) of this title</span></a>, </span><span style="font-family:"Open Sans",sans-serif;color:red">except for an assignment to a successor to the business of the applicant, or portion thereof, to which the mark pertains, if that business is ongoing and existing.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">So, at the moment, the LLC does not appear to be a successor to the business of the [Inc.], or a portion thereof, to which the mark, if that business is ongoing and existing. Inc. has not
started a business that uses the mark yet.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">So Im wondering which entity should use the mark first.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">I believe the LLC is the entity that will be operating the business that uses the mark.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">So one option is to put a license agreement in place between the Inc. and the LLC so that the use by the LLC is for the benefit of the Inc.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Does that open up any resulting registration to attack that the Inc. did not have bona fide intent to use?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">If so is the only way to navigate this to have the Inc. use the mark, then file the statement of use, then assign the mark and goodwill to the LLC?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Has anyone been down this road before?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Dale<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span lang="EN-US" style="font-family:"Arial",sans-serif;mso-ligatures:none;mso-fareast-language:EN-GB">C. Dale Quisenberry<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family:"Arial",sans-serif;mso-ligatures:none;mso-fareast-language:EN-GB">Quisenberry Law PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family:"Arial",sans-serif;mso-ligatures:none;mso-fareast-language:EN-GB">13910 Champion Forest Drive, Suite 203<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family:"Arial",sans-serif;mso-ligatures:none;mso-fareast-language:EN-GB">Houston, Texas 77069<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family:"Arial",sans-serif;mso-ligatures:none;mso-fareast-language:EN-GB">(832) 680.5000 (office)<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family:"Arial",sans-serif;mso-ligatures:none;mso-fareast-language:EN-GB">(832) 680.1000 (mobile)<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family:"Arial",sans-serif;mso-ligatures:none;mso-fareast-language:EN-GB">(832) 680.5555 (facsimile)<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family:"Arial",sans-serif;mso-ligatures:none;mso-fareast-language:EN-GB"><a href="http://www.quisenberrylaw.com"><span style="color:#0563C1">www.quisenberrylaw.com</span></a><o:p></o:p></span></p>
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