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Q: How can I acquire a defunct company's trademarks in Illinois?

I am interested in acquiring ownership of a defunct company that ceased operations in 1968, along with its key original filed trademarks. Some of these trademarks are still actively used by an owner within the same industry, while others are expired or have limited use. I want to continue the company's legacy by restarting it today and secure ownership of these trademarks for their original intended purposes. How can I legally proceed to achieve this?

3 Lawyer Answers
Patrick A. Twisdale
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A: Trademark rights in the United States are primarily governed by federal law and adjudicated through the U.S. Patent and Trademark Office (USPTO) and the federal court system, rather than through state registration systems. While some states, including Illinois, do maintain their own trademark registries, these systems generally do not offer the same level of protection or nationwide enforceability as federal registration. One of the most well-known cases highlighting the primacy of federal and common law trademark rights is Burger King of Florida, Inc. v. Hoots, decided in a federal court in Illinois. In that case, although the defendant held a state trademark registration for "Burger King" in Illinois, the court ultimately found in favor of the federally registered Burger King franchise in most areas of Illinois. Notably, the court dismissed the protection of the state registration as Illinois law at the time did not adequately scope protection throughout Illinois, like the federal rules cover all of the US. Although this aspect of the opinion is rarely cited, it illustrates the limited legal weight of state-level protections in trademark disputes and the importance of federal registration and actual use in commerce.

In the context of a defunct company’s marks, if an organization is currently using one or more of the trademarks previously associated with the defunct company, it’s possible that they lawfully acquired the rights at some point in the past. This may have occurred through a formal assignment, a merger or acquisition, or even informally if the rights and associated goodwill were never properly dissolved or were treated as part of successor interests. Even if the company ceased operations in 1968, trademark rights can survive if they were transferred or continuously used by another entity without interruption. If the current user of the mark has maintained consistent commercial use, they may hold enforceable rights under common law or federal registration, regardless of whether they are the original registrant.

It would be advised to reach out to trademark counsel who can effectively advise you based on your unique issue.

James L. Arrasmith
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A: Your passion for reviving a historic company is admirable. To acquire ownership of its trademarks in Illinois, you’ll first want to check the current status of each trademark through the United States Patent and Trademark Office (USPTO) database. If some trademarks are expired or have been abandoned, you may be able to register them yourself for the same goods or services, provided no one else has valid rights or is actively using them.

For trademarks that are still in active use or registered by someone else, you would need to negotiate a purchase or assignment of those marks from the current owner. This often involves reaching out to the listed trademark owner and arranging a written agreement to transfer ownership. If a trademark has been “dead” or unused for a long time but someone else claims it, you might be able to challenge their rights, but that process can be complicated.

After you secure the rights—whether by new registration or purchase—make sure to use the trademarks in actual commerce to keep your claims valid. Keep thorough records and be ready to show how you are carrying on the original business’s legacy. This careful approach can help you rebuild the brand and protect it for the future.

James L. Arrasmith
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A: If you want to acquire trademarks from a defunct company in Illinois, start by researching the current status of each trademark through the U.S. Patent and Trademark Office (USPTO) database. For trademarks that have expired or been abandoned, you may be able to file a new application to register them under your name, as long as no one else has valid rights or active registrations. For trademarks still in use by another owner, you would need to negotiate a purchase or licensing agreement with that owner to obtain legal rights.

If the original company still exists as a legal entity but is inactive, you might consider purchasing the company itself or its intellectual property rights through an asset acquisition. This often requires locating any successors, heirs, or holding companies. Because trademarks involve ongoing rights based on use in commerce, proving continuous or planned use of the mark in your business will be key to maintaining ownership.

Consulting with a business attorney can help you navigate the acquisition process, draft agreements, and ensure you do not infringe on others’ rights. This will also help you clarify whether any trademarks are vulnerable due to abandonment or non-use. Securing proper ownership will allow you to revive the brand legacy effectively and avoid future disputes.

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