Legal updates and opinions
News / News
South Africa: trade marks as valuable assets to raise funding
By Janine Hollesen and Donvay Wegierski, Directors
The registration of trade marks has numerous advantages one of which is that as registered trade marks are assets they can be used as collateral to raise funding. The Trade Marks Act makes specific provision for the hypothecation of the marks which must however be registered before they could be hypothecated in this way.
This is a further reason to keep in mind when considering whether to file trade mark applications.
In light of the fact that trade mark applications take between 2 – 3 years to proceed to registration in South Africa, it is a good idea to file trade mark applications as soon as possible in order to ensure that these rights can be relied upon if this may be necessary for purposes of raising funding during different phases of a company’s history.
It must also be kept in mind that trade marks can be registered in one or more of 45 classes. If a mark is used or going to be used for different products and services it is important to file trade marks in the relevant classes. Each registration in the different classes is a separate and distinct trade mark registration which could be taken into account by the funders when raising the funding.
If you would like to learn more about Intellectual Property please visit our practice area page.
Latest News
The impact of Mitchell judgement on purchases of immovable property from an insolvent estate
In a recent judgement, of City Tshwane Metropolitan Municipality v PJ Mitchell (38/2015) (2015) ZASCA, the Supreme Court of Appeal ruled that [...]
Tread carefully when merging: tribunal imposes massive fine for failure to notify
In the intricate process of acquiring another business or forming a joint venture, firms often forget to check whether the [...]
The duty to disclose business rescue proceedings
On 14 April 2016, the Supreme Court of Appeal (“SCA”) in the matter of Umso Construction Proprietary Limited (“Umso”) v MEC [...]
Spotlight on boards and shareholder activism
INTRODUCTION Corporate activism places public pressure on boards to improve both financial and non-financial performance of companies. Non-financial performance [...]
New treatment of fractional entitlements in terms of the JSE listings requirements
A recent change to the Johannesburg Stock Exchange (JSE) Listings Requirements, which deals with the manner in which entitlements to [...]
Strike action in circumstances where there has been a long delay between the issuing of a certificate of outcome and the subsequent election to embark on a strike
PRASA t/a Metrorail v SATAWU and Others (C190/2016) ISSUE Whether a strike is protected in circumstances where there has [...]
