According to Russian legislation, registration of a trademark (TM) was possible only for legal entities and individual entrepreneurs (IP). But on June 28, 2022, Federal Law No. 193-FZ “On Amendments to Part Four of the Civil Code of the Russian Federation” was adopted, which states that individuals can also register trademarks. That is, the possibilities for registering trademarks have increased, but the question arises: who is it more profitable and safer to register it for?

For example,

registration of technical specifications for a legal entity

is advantageous in that it can be used as an intangible asset of the company. Registration helps to increase its rating in the market and attract investors, and with the successful development of the company, the value of the mark also increases. In cases of controversial situations, for example, the complete closure of a business or the departure of one of the co-founders, the rights to the technical knowledge remain with the company. However, after three years of inactivity, the TK may be canceled by competitors. (Article 1486 of the Civil Code of the Russian Federation). For this reason, before registering a trademark, it is necessary to seriously consider the question of who will own the exclusive rights to the designation - a company, an individual entrepreneur or an individual.

An individual entrepreneur (IP) can engage in commercial activities without registering a legal entity. Registration of a trademark for individual entrepreneurs

, who can also be a co-founder in the company, but have a share of less than 50%, is beneficial only if a conflict of interests arises with partners. For example, if a company ceases to exist or the owner of the trademark wants to leave the founders, the trademark that was previously transferred to the company under a licensing agreement will remain with its owner.

However, there is also a minus: in the event of the death of an entrepreneur, the technical knowledge passes to the heirs, who have the right to dispose of it at their own discretion and not always beneficial for the company.

As for the self-employed, the legislation took into account their interests.

Thus, in accordance with the adopted Federal Law No. 193-FZ of June 28, 2022, the opportunity to register trade mark for themselves, and therefore to individualize their goods and services on the market, has also arisen for the self-employed. As a rule, self-employed people register designations in their name, and if they run a successful business, they can in the future change their status to individual entrepreneur and use technical specifications that are already promoted and known to consumers.

Registration of a trademark for an individual

which is not currently engaged in business activities, but plans to do so in the future, has its advantages:

- individuals are not required to submit an application to the tax office in order to register after registering a trade mark;

- if an individual provides services that fall within the list of services established by law, then he can work under his own technical specifications, and if successful, in the future, create his own company;

- no risk of brand takeover, since the right to it belongs to one person;

- an individual can rent out technical knowledge to a company and make a profit from it;

- a trademark can be inherited.

However, if an individual does not use a trademark, the designation can also be canceled or assigned by competitors, and in order to preserve the brand, its owner must provide irrefutable evidence of the use of the trademark.

Thus, in order to decide for whom it is more profitable to register a trademark, it is necessary to take into account the needs of the business, its development strategy and current opportunities.