Companies often own valuable intellectual property including trademarks which companies use to identify themselves and their goods and service. For example, the intellectual property rights may include the name of the business. But what happens to the trademarks including company name if a company breaks up or splits apart. For example, if a company splits in two or a partnership dissolves, who among the parties to the breakup owns the trademarks.
This breakup scenario is common place among musical bands where eventual break-ups strike a familiar cord. Examples of this can be seen in the breakup or departure of members of the band Boston, Van Halen, Herman's Hermits, the Animals, and New Edition to name just five.
One possible way to plan for the possible breakup is the use of an analogous tool to a prenuptial agreement prior to marriage. A partnership agreement, articles of incorporation or like instrument, signed by the principals to the business entity, can spell out who will get the rights to trademarks including business name upon dissolution of the company.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.