Intangible assets are now among the main drivers of value for companies and entrepreneurs. Trademarks, patents, and domain names form the core of a project’s identity, innovation, and commercial projection.
However, this value depends not only on having registered the right but also on constant administrative management. One critical obligation within that management is to keep ownership details up to date—especially the owner’s name or legal entity and address.
The importance of this becomes clear when considering two inevitable scenarios: the death of an individual or the dissolution of a legal entity. In both cases, if the records do not reflect the new reality, those assets face a high risk of being lost, becoming inactive, or even being taken advantage of by third parties.
When the Owner Is an Individual
Trademarks, patents, or domains registered in the name of an individual form part of their estate under Article 659 of the Spanish Civil Code and are therefore transferable mortis causa. In principle, heirs are entitled to continue exploiting those rights commercially or, if they wish, to sell them.
However, for the succession to have effect against third parties, it must be recorded in the relevant registry. Thus, under Article 46 of the Spanish Trademark Act 17/2001 of December 7, it must be registered with the Spanish Patent and Trademark Office (OEPM).
To this end, an application form for the change of ownership must be filed, together with the corresponding fee and documentation proving the acceptance and allocation of inheritance that legitimizes the new owner of the inherited intangible assets.
When the Owner Is a Legal Entity
This case is not very different. In situations involving the dissolution and liquidation of companies, as well as mergers and acquisitions, all the entity’s assets—including intangible ones—must be included in the inventory, as provided in the Consolidated Spanish Companies Act (RDL 1/2010, July 2).
For the transfer of rights to have effect against third parties, registration is likewise essential.
In this case, in addition to the change-of-ownership form and payment of the official fee, documentation proving the company’s liquidation or, where applicable, the merger or acquisition agreement, along with the list of assets assigned to the new owner, must be submitted.
When a Company’s Intangible Assets Are Held by an Individual
Another frequent situation arises when a company’s assets are registered under an individual’s name—often the founder, creator, or key partner. This is common in the early stages of a project but poses serious long-term risks. If the registered owner dies, the company could be left unprotected, and the rights could pass to unrelated heirs or even those with conflicting interests.
To avoid this, it is essential to foresee mortis causa transfer in favor of the company or ensure that heirs cannot create conflicts that jeopardize business continuity and value.
Consequences of Not Updating Registry Data
Failure to update ownership data carries serious legal risks, as industrial property rights can lapse if no legitimate owner is recorded.
Some direct consequences include:
- Loss of rights: Registration offices will continue sending notices to the former owner, who may no longer exist or have legal capacity, leading to the lapse of rights for non-payment of fees.
- Inability to defend rights: If the registry data do not match the real owner, it becomes difficult to file claims against infringers or respond to cancellations.
- Deprivation of rights: Heirs or creditors may lose valuable intangible assets simply due to the lack of proper formalization of the transfer.
- Uncertainty in commercial operations: Licenses, franchises, or asset transfers can be blocked if registries do not reflect the legal ownership.
- Digital vulnerability: In the case of domain names, incorrect registrant data may lead to cancellation or website suspension.
- Presumption of accuracy: Registry data are presumed true and public, meaning it is the owner’s obligation to keep identifying details—name, company name, and address—up to date.
The Solution: Proactive Management
An owner’s name and address are not mere formalities; they are essential elements that ensure valid notifications and proper identification by third parties. Without alignment between reality and the registry, the right becomes legally fragile.
In inheritance matters, heirs must include and register industrial property rights in the inventory to guarantee their continuity. Likewise, in liquidation, merger, or acquisition processes, administrators must ensure the proper formalization and immediate update of ownership and corporate address.
Additionally, having specialized industrial property agents or domain managers helps ensure deadlines are met and notifications are received during complex transitions.
Ultimately, intellectual and industrial property rights are only as strong as the quality of their registry management. Keeping ownership data updated is not a mere formality—it is the essential condition for those assets to survive, remain valid, and continue generating economic and strategic value.
Article by Elba Pastor.
