1. How many years does a general trademark registration need to be amortized?
Generally according to the agreement Just confirm the number of years, and there is no agreement on amortization over a period of not less than ten years. According to relevant legal provisions, the amortization expenses of intangible assets calculated according to the straight-line method are allowed to be deducted, and the amortization period shall not be less than 10 years.
Article 39 of the "Trademark Law" stipulates that the validity period of a registered trademark is 10 years, calculated from the date of approval.
Article 40 If a registered trademark has expired and needs to be continued to be used, the trademark registrant shall go through the renewal procedures in accordance with regulations within twelve months before expiration. ; If the application cannot be processed during this period, a six-month grace period can be given. Each renewal of registration is valid for ten years, starting from the day after the expiration of the previous term of validity of the trademark. If renewal procedures are not completed upon expiration, the registered trademark will be cancelled.
2. Amortization period of trademark rights What does it mean?
Amortization refers to the calculation of operating assets other than fixed assets that can be used for a long time according to their useful lives. The accounting treatment for apportioning the acquisition cost each year is similar to the depreciation of fixed assets. Amortization expenses are included in administrative expenses to reduce current profits, but have no impact on operating cash flow.
Amortization of intangible assets is a method of amortizing the original price of intangible assets within their validity period.
Trademark rights belong to the category of intangible assets. It can be seen that the amortization of trademark rights refers to the annual amortization of trademark rights according to their effective use years. Accounting treatment of acquisition costs. Then, the amortization period of a trademark right is the effective period during which the trademark right is protected by law.
3. How is the amortization of trademark rights calculated?
1. Amortization scope and useful life Limited trademark rights should be amortized, and their residual value is usually considered to be zero.
Intangible assets with indefinite useful lives should not be amortized, but should be accounted for Provision for impairment.
2. Amortization time Enterprises should amortize trademark rights on a monthly basis. Intangible assets with limited service life should be available for use since (that is, it reaches its intended use), amortization will begin from the month it is used, and there will be no amortization in the month of disposal.
3. The amortization amount of the trademark right that is used by the enterprise for its own use Included in administrative expenses;
The amortization amount of leased intangible assets is included in other business costs;
If the economic benefits contained in the trademark right are realized through the products or other assets produced, the amortization amount shall be included in the cost of the relevant assets.
Trademark The amortization period of the right refers to the validity period of the trademark right protected by law. According to the provisions of the Trademark Law, the validity period of a registered trademark is 10 years, calculated from the date of approval. When the registered trademark expires, it needs to continue to be used , the trademark registrant shall go through the renewal procedures in accordance with the regulations within the period of twelve months before expiration; if the renewal procedures cannot be completed during this period, a six-month extension period may be granted. Each renewal The validity period of trademark registration is ten years, starting from the day after the expiration of the previous term of validity of the trademark. If the renewal procedure is not completed at the end of the period, the registered trademark will be cancelled.
Based on what has been said above, the amortization of trademark registration fees can be agreed in accordance with the law. If there is an agreement, it will be handled as agreed. If it is not agreed, the amortization time cannot be less than ten years. For the amortization of trademark registration fees, , are generally included in the category of intangible assets, so you need to negotiate more when handling them so that they can be handled better. I hope the above content can be helpful to you. If you have other questions, you can click the button below for consultation. Or go to the Legal Savior website to consult a professional lawyer.
