Contribute capital with trademark ownership to the business

Contribute capital with trademark ownership is a form of capital contribution to a business, in which customers use their trademark ownership to create capital contribution. This form allows customers to exploit the commercial value of the brand, turning intangible assets into financial resources for businesses. This article will analyze conditions, processes, benefits and provide consulting services on capital contribution using intellectual property rights at Long Phan.

Is it possible to contribute capital with trademark ownership?

To contribute capital with trademark ownership, customers need to meet a number of legal conditions. According to Clause 2, Article 1 of the Amended Law on Intellectual Property Law 2009, trademarks are objects of intellectual property rights, belonging to the group of industrial property rights as prescribed in Clause 1, Article 1 of this Law.

Article 34 of the Law on Enterprise 2020 stipulates that contributed assets include intellectual property rights. Therefore, capital contribution by trademark is allowed by law. However, the trademark used for capital contribution must fully meet the following conditions:

• Trademarks have been registered for protection: Only trademarks that have been granted a Protection Registration Certificate by the National Office of Intellectual Property are eligible to contribute capital.
• Trademarks must not violate regulations on signs that are not protected under the Law on Intellectual Property.
• The trademark protection term is still valid when capital contribution is made.

Process and procedures for contribute capital with trademark ownership

The process of contributing capital through trademark ownership requires careful preparation and compliance with legal regulations. Basic steps include:

Step 1: Valuing the brand: Brand valuation is an important step in determining the value of capital contribution. Customers can choose different pricing methods, each method has its own advantages and limitations. Cards include:

• Cost method: Calculate brand value based on the costs spent to create and develop the brand. This method is suitable for new brands that have not yet built much commercial value.
• Market method: Compare the brand with similar brands in the market to determine value. This method is suitable for brands that have a reputation and a certain market share.
• Income method: Estimates brand value based on ability to generate future profits. This method is suitable for brands with high growth potential.

According to Clause 1, Article 36 of the Law on Enterprises 2020, the valuation of assets contributed as capital is agreed upon by the parties or hired by a professional valuation organization.

Note: Intellectual property rights must be valued and expressed in Vietnam Dong. Accordingly:

• Assets contributed as capital to establish an enterprise must be valued by members and founding shareholders according to the principle of consensus or by a valuation organization.
• In case a valuation organization determines the value, the value of contributed assets must be approved by more than 50% of the members and founding shareholders.
• In case the assets contributed as capital are valued higher than the actual value of that asset at the time of capital contribution, the founding members and shareholders jointly contribute an additional amount equal to the difference between the appraised value, and the actual value of the assets contributed as capital at the end of the valuation; At the same time, jointly responsible for damages caused by intentionally valuing contributed assets higher than the actual value.

Step 2: Negotiate, agree and make capital contribution contracts: Customers need to negotiate with other capital contributors (if any) about the brand value and ownership ratio corresponding to contributed capital. The parties need to draw up a capital contribution contract, clearly stating important contents such as:

• Information of capital contributors.
• Specific intellectual property rights (Certificate owner/patent owner,…; application number; application filing date; granting decision; protection term,…).
• Brand value.
• Method of capital contribution.
• Rights and obligations of the parties.
• Other basic terms…

Step 3: Sign a contract and transfer trademark ownership to the business.  Accordingly, individuals and organizations transfer intellectual property rights through changing the owner of those intellectual property rights at a competent state agency.

Step 4: After completing the valuation and signing the contract, customers need to carry out the following procedures:

• Register to change charter capital at the Business Registration Office.
• Update trademark information in business profile.
• Complete relevant tax procedures (if any).

Benefits of contributing capital through trademark ownership

Contribute capital with trademark ownership brings many benefits to both businesses and trademark owners, including:

• Optimize resources: Exploit the value of intangible assets, turn brands into financial resources for businesses, promote production and business activities, and create added value.
• Enhance competitiveness: A strong brand is an important competitive advantage, helping businesses attract customers, expand market share and affirm their position in the market.
• Diversifying capital sources: In addition to traditional forms of capital contribution such as cash, housing, land use rights, capital contribution by brand helps diversify capital sources for businesses, creating favorable conditions for raising capital. investment capital.
• Cost savings: Compared with bank loans, contributing capital with a trademark can help businesses save on interest costs and reduce financial burden.
• Enhance reputation: Owning a strong brand contributes to enhancing the reputation and image of the business, building trust with customers and partners.

Consulting services for capital contribution using intellectual property rights at Long Phan

Long Phan provides consulting services on capital contribution with intellectual property rights, including ownership of trademarks, inventions, industrial designs… with a team of experienced experts and in-depth expertise. We are committed to providing customers with high quality service, meeting all needs and ensuring maximum benefits.

Our services include:

• In-depth consulting on capital contribution by trademark ownership and other intellectual properties.
• Consulting on choosing a brand and intellectual property valuation unit.
• Drafting capital contribution contracts.
• Carry out procedures for registering changes in charter capital.
• Consulting on tax and other related issues.
• Handover results and support after completing capital contribution.

Contributing capital through trademark ownership is an effective form of capital contribution, bringing many benefits to businesses. Customers need to carefully study the regulations, choose the appropriate capital contribution plan and follow the correct procedures. Long Phan with a team of experienced experts is ready to accompany customers in the process of capital contribution by trademark ownership. Contact us via the hotline 0906735386 for detailed advice.