In a recent BeautyMatter article exploring the legal complexities of trademark ownership and brand protection in the beauty industry, Knobbe Martens partner Jeff Van Hoosear shared insights on trademark registration, clearance, and acquisition strategy in the U.S. and globally for namesake beauty brands.
Van Hoosear explained how beauty brand founders can acquire trademark rights in the United States, noting that an effective strategy is structuring IP ownership within a corporate entity such as an LLC or corporation. He cautioned that “a common mistake is not doing a proper clearance of a trademark prior to its adoption and use,” and warned about other pitfalls that can void a trademark registration, such as not filing in the name of the correct owner.
Addressing international trademark protection, Van Hoosear noted that “trademark rights in many countries are dependent upon having a trademark registration,” making early filings essential for beauty brands scaling globally through e-commerce.
Discussing the role of intellectual property in beauty brand acquisitions, he explained that the degree of trademark control a founder retains can often impact the financial terms of the acquisition. However, he emphasized that “there are no standard founder clauses” dictating how the founder of a namesake beauty brand can continue to operate under their own identity following an acquisition. He also highlighted the importance of clarifying intellectual property ownership in brand collaborations, noting that parties must determine who owns any new trademarks created during the collaboration process, even after the partnership ends.
Read Van Hoosear’s full comments in the BeautyMatter article, “Ownership Versus Acquisition: When a Name Stops Belonging to You”.
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