India 
Canada
In today’s competitive business landscape, trademarks play a crucial role in establishing brand identity and consumer trust. However, simply registering a trademark is not enough; conducting thorough trademark due diligence is essential to ensure its validity, enforceability, and long-term security. Whether a company is acquiring a trademark, entering into a licensing agreement, or expanding into new markets, due diligence acts as a safeguard against potential legal disputes and financial setbacks.
Trademark due diligence begins with verifying ownership and registration details. It is crucial to confirm that the trademark is legally registered in the relevant jurisdiction and that the ownership records are accurate. This step helps prevent disputes over rights and ensures that the entity claiming the trademark has the legal authority to use or transfer it. Additionally, examining the registration status—whether the mark is active, expired, or pending—provides insights into any risks associated with its use.
Another critical aspect of due diligence is assessing the scope of protection. Trademarks are categorized under specific classes based on the Nice Classification system, which determines the range of goods and services they cover. Ensuring that a trademark is registered under the correct class is vital for securing exclusive rights in the relevant industry. Moreover, checking for potential conflicts with existing trademarks helps mitigate the risk of infringement claims that could lead to costly litigation.
Beyond registration, a trademark’s commercial use is a key factor in maintaining its legal standing. Some jurisdictions require proof of use at periodic intervals to sustain the trademark’s validity. Failure to comply with these requirements can result in cancellation or revocation. Therefore, due diligence should include a review of how the trademark is being used in commerce, ensuring that it aligns with the original registration and continues to serve as a distinctive brand identifier.
Additionally, it is important to examine whether the trademark is subject to any encumbrances, such as licensing agreements, assignments, or pledges as collateral. If a trademark has been licensed to another party, the terms of the agreement must be carefully reviewed to understand any limitations on its transferability. Likewise, trademarks involved in disputes, oppositions, or cancellation proceedings require close scrutiny, as they may pose risks to future business operations.
For businesses looking to expand internationally, due diligence should extend beyond domestic registrations. Understanding the trademark’s protection status in global markets, particularly under international agreements like the Madrid Protocol, can prevent conflicts in cross-border trade. If additional filings are necessary to strengthen protection in foreign jurisdictions, early action can prevent brand dilution and unauthorized use by competitors.
Conducting thorough trademark due diligence is not just a legal necessity but also a strategic business decision. It ensures that a brand remains legally protected, enhances its value as an intellectual property asset, and reduces the risk of unforeseen challenges. By investing time and resources in due diligence, businesses can secure their trademarks as powerful tools for brand growth and market dominance.
