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Roger L. Neu

 

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Intangibles (Name, Patents, etc.)

Question: Should I guarantee that the Buyer will have the absolute right to continue the use of Seller’s company name and product names?

Many times, companies do not register their company names or product names. If the names are registered, however, registration alone does not guarantee the absolute right to use those names. Parties who have engaged in prior use of one or more of the names may have the right to the name and the Seller may not be aware of that right. Sellers need to be cautious in providing an absolute "bond" warranty that the Buyer will have the absolute right to the use of the names. The correct form of the representation and warranty by the Buyer needs to be carefully drafted in light of all the facts and circumstances.


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