Trademarks and other intellectual property rights can be critical to a borrower`s financial success and constitute an important part of the borrower`s goodwill. Therefore, trademarks can be an important part of the lender`s collateral. With a few extra steps, the lender can better protect its interests in these valuable assets. (k) Power of attorney. The debtor hereby ratifies all that such attorney will lawfully do or do under this Agreement. The power of attorney granted herein terminates upon termination of the loan agreement provided therein and the payment and performance of all obligations. In summary, a valuable trademark lender should consider further protecting its security rights against bona fide buyers and mortgagees by filing a trademark protection agreement with the USPTO. Please contact us if you have any questions or concerns. Security rights in trademarks are subject to Article 9 of the Uniform Commercial Code (CDU). While the lender`s standard security agreement and UCC`s financing status are sufficient to complete a common law trademark security right, notice of the lender`s security right should also be registered in the USPTO for trademarks and pending filings to protect the lender from bona fide buyers and mortgagees. An abbreviated trademark protection agreement is recommended when you file it with the USPTO in order to protect the borrower`s privacy and avoid disclosing the terms of the loan that are included in the traditional security agreement. The trademark security agreement filed with the USPTO must specifically identify the trademarks, which is usually achieved by attaching a schedule that lists the trademark, jurisdiction, registration number, date of registration, and owner of the record. The Trademark Security Agreement and List of Trademarks can be uploaded electronically to the USPTO.
When you use the automated process, a form known as a trademark assignment cover sheet is automatically created and payment of the registration fee is required. Notably, the USPTO does not review bids, so the content is the responsibility of the bidding party. The filing fee is based on the number of trademarks, with $40.00 for the first trademark and $25.00 for the second trademark and each subsequent trademark in the same document. Saving a document is not a determination of the effect of the document on the chain of title. The determination of the effects that a document may have on the assets is made by the Office at the time when ownership must be established in order for the alleged assignee to act in connection with a patent or application. See MPEP § 324 and § 325.5. Standard events. Each of the following events constitutes an event of default under this Agreement (hereinafter referred to as the ”Default Event”): (a) there is an event of default within the meaning of the Loan Agreement; or (b) the Debtor fails to comply with or promptly execute any agreement or understanding binding on it hereto; or (c) any of the representations or warranties contained in Section 3 must prove to be inaccurate in all material respects at the time of their representation. Next, the lender must determine what its position of privilege on the marks will be. A uniform commercial code (UCC) standard lien search indicates whether a prior lien on the borrower`s trademarks has been registered. In addition, the lender should also seek other potential security rights in the form of assignments, using the United States Patent and Trademark Office (USPTO).
2. Security. The debtor hereby pledges and irrevocably assigns them and grants the secured party a security right (the ”Security”) with power of attorney to sell, to the extent permitted by law, patents and trademarks to secure payment of obligations. As stated in the loan agreement, the security right is linked to a security right in all of the debtor`s personal property. This Agreement grants only the security right described herein, is not intended to do so and does not affect the current transfer of ownership of any registration or trademark application, and makes no assignment or grants any right to assign or perform any other action with respect to the intention to use a trademark application, unless such action is authorized under 15 U.S..C S. § 1060. (h) maintenance. The debtor will retain the patents and trademarks at its own expense to the extent reasonably desirable in the course of its business, including, but not limited to, filing all applications for letters patent or trademark registrations and all affidavits, maintenance fees, pensions and possible renewals with respect to the letters patent, trademark registrations and applications for registration. The debtor agrees not to waive or pay any maintenance or annuity tax due and payable for a patent or trademark, or to file an affidavit or extension required in support thereof, without first notifying the secured party: (i) sufficient written notice of at least 30 days for the secured party to pay such support taxes or annuities, that may become due for patents or trademarks, may pay on time, or file an affidavit or renewal in respect of them, and (ii) a separate written power of attorney or other authorization to pay such maintenance fees or annuities, or to file such affidavit or extension if necessary or desirable….
