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<p>At the risk of oversimplifying and maybe not fairly
characterizing your question ...</p>
<p>You seem to be wondering if sometimes the filer (say XYZ Inc)
might not really have much to convey in an assignment to the
successor (XYZ LLC). And if there is not much to convey (perhaps
very close to nothing) then can we be sure that the requirements
of <span>15 USC 1060(a)(1) are satisfied?</span></p>
<p><span>Over the years I have handled the occasional case where the
filer signs an assignment that assigns stuff over to the
successor ... and it is basically a quitclaim deed. The filer
is not representing and warranting the amount of goodwill being
conveyed, and </span><span>is not representing and warranting
the amount of stuff that constitutes the "</span><span>business
of the applicant, or portion thereof, to which the mark pertains</span><span>".
But whatever there is, it is being conveyed. A quitclaim. <br>
</span></p>
<p><span>And I have figured this ought to be enough to </span><span>satisfy
15 USC 1060(a)(1). The exception I suppose being some extreme
fact pattern where the filer has very actively told the world it
is not doing anything at all, or has previously engaged in some
conduct or another that is entirely inconsistent with any
nonzero amount of goodwill or business or trademark rights
having ever existed.<br>
</span></p>
<div class="moz-cite-prefix">On 6/20/2025 8:25 AM, Dale Quisenberry
via E-trademarks wrote:<br>
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<p class="MsoNormal"><span>Listmates,</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>Client filed ITU application in name
of XYZ, Inc. (a foreign corporation)</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>Mark has not been used yet.</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>Client has now formed XYZ, LLC (a US
based LLC).</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>Client wants to know if it can assign
the ITU application from the Inc. to the LLC.</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>The starting point is no, but I\u2019m
exploring the exception in 15 USC 1060(a)(1):</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span class="num"><b><span>(a)</span></b></span></p>
<p class="MsoNormal"><a name="a_1" moz-do-not-send="true"></a><span
class="num"><b><span>(1)</span></b></span><span></span></p>
<p class="MsoNormal"><span>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"
moz-do-not-send="true"><span>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"
moz-do-not-send="true"><span>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"
moz-do-not-send="true"><span>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"
moz-do-not-send="true"><span>section 1051(d) of this title</span></a>,
</span><span>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.</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>So, at the moment, the LLC does not
appear to be a \u201csuccessor to the business of the [Inc.], or
a portion thereof, to which the mark, if that business is
ongoing and existing.\u201d Inc. has not started a business that
uses the mark yet.</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>So I\u2019m wondering which entity should
use the mark first.</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>I believe the LLC is the entity that
will be operating the business that uses the mark.</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>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.</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>Does that open up any resulting
registration to attack that the Inc. did not have bona fide
intent to use?</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>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?</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>Has anyone been down this road
before?</span></p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span>Dale</span></p>
<p class="MsoNormal"><span> </span></p>
<div>
<div>
<p class="MsoNormal"><span lang="EN-US">C. Dale Quisenberry</span></p>
<p class="MsoNormal"><span lang="EN-US">Quisenberry Law PLLC</span></p>
<p class="MsoNormal"><span lang="EN-US">13910 Champion
Forest Drive, Suite 203</span></p>
<p class="MsoNormal"><span lang="EN-US">Houston, Texas 77069</span></p>
<p class="MsoNormal"><span lang="EN-US">(832) 680.5000
(office)</span></p>
<p class="MsoNormal"><span lang="EN-US">(832) 680.1000
(mobile)</span></p>
<p class="MsoNormal"><span lang="EN-US">(832) 680.5555
(facsimile)</span></p>
<p class="MsoNormal"><span lang="EN-US"><a
href="http://www.quisenberrylaw.com"
moz-do-not-send="true"><span>www.quisenberrylaw.com</span></a></span></p>
<p class="MsoNormal"><span lang="EN-US"> </span></p>
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<p class="MsoNormal"> </p>
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<br>
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