Trademark Security Agreement Template for Pakistan

The Trademark Security Agreement is a specialized security document used in Pakistan when a company or individual wishes to use their trademark assets as collateral for financial obligations. This arrangement is particularly common in commercial lending, acquisitions, and corporate refinancing situations where intellectual property forms a significant part of a company's assets. The agreement must comply with Pakistan's Trade Marks Ordinance, 2001, the Contract Act, 1872, and other relevant commercial laws. It contains specific provisions for creating and perfecting the security interest, maintaining the trademark rights, and establishing enforcement mechanisms. The document is crucial in modern financing transactions in Pakistan, especially for businesses with valuable trademark portfolios seeking to leverage their intellectual property assets for financial purposes.

1. Parties: Identification of the trademark owner (grantor) and the secured party (grantee), including their legal status and registered addresses

2. Background: Context of the agreement, including reference to any underlying credit agreement or obligation and the trademark owner's rights in the relevant trademark(s)

3. Definitions: Definitions of key terms used throughout the agreement, including 'Collateral', 'Secured Obligations', 'Event of Default', and specific trademark-related terms

4. Grant of Security Interest: The formal creation and grant of the security interest in the trademark(s), including any associated goodwill and rights

5. Secured Obligations: Detailed description of the obligations secured by the agreement, including principal amounts, interest, and other secured obligations

6. Representations and Warranties: Grantor's declarations regarding ownership, validity, and status of the trademark(s) and authority to grant the security interest

7. Covenants: Ongoing obligations of the grantor regarding maintenance, protection, and defense of the trademark(s)

8. Rights and Remedies: Secured party's rights upon default, including enforcement mechanisms and power of sale

9. Further Assurances: Grantor's obligation to execute additional documents and take actions necessary to perfect and maintain the security interest

10. Term and Termination: Duration of the agreement and conditions for termination or release of the security interest

11. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and designation of competent courts

12. Notices: Procedures and addresses for formal communications between parties

13. Miscellaneous: Standard boilerplate provisions including severability, amendments, and entire agreement