Trademark Registration Escapes Liquidation

Facts We acted for a successful online retailer who decided to take in a business partner. A joint venture company was set up but we advised our client to retain ownership of the trademark registration and business names and licence them to the business. This not only enabled him to charge a royalty to the business but after a short honeymoon period there was a huge shareholders bust up as a result of which the company was would up and a liquidator appointed to sell the business. However, no-one other than our client was prepared to buy the business from the liquidator because our client owned the trademarks and brands personally and would not permit anyone else to use them. Accordingly, our client was able to get back the web-site business from the liquidator for a very modest sum and carry on trading.