Example: Two founders move their brand into a holding company
This example combines common situations and does not describe a real client.
Situation
Two founders run a homewares brand through a trading company. The trade mark application was filed in the trading company's name, and the product designs and catalogue artwork sit with the founders personally. Their accountant recommends a holding company, so that the brand is less exposed if the trading company is sued or runs out of money. The reasons for that structure are set out in our article on holding companies and IP.
What we do
We prepare two documents that work together. An IP assignment deed moves the trading company's trade mark application and the goodwill in the brand, and the founders' product designs and artwork, into the holding company, with each founder's moral rights consent for the artwork. An exclusive licence then lets the trading company keep using all of it, with quality standards so its sales still count as use of the holding company's trade mark. Signing is held until the accountant confirms the capital gains tax position and whether the holding company should pay for the IP in cash or by issuing shares. Once the deed is signed, the change of owner is recorded with IP Australia.















