What is the freezing of trademark rights? When will the trademark right be frozen?

The concept of freezing trademark rights: the pledgee can apply to the court for freezing trademark rights, and then discount, auction or sell the exclusive right to use a registered trademark. When the debtor fails to perform the due debt or the parties agree to realize the pledge, the trademark right will be frozen.

legal ground

Article 444 of the Civil Code

Where the right to exclusive use of a registered trademark, patent right, copyright and other intellectual property rights are pledged, the pledge right shall be established at the time of pledge registration.

After the pledge of property rights in intellectual property rights, the pledgor may not transfer or license others to use them, unless the pledgor and the pledgee agree through consultation. The pledgor shall pay off the debts in advance to the pledgee or deposit the price for transferring or allowing others to use the pledged intellectual property rights.

Article 436

Where the debtor performs the debt or the pledger pays off the secured creditor's rights in advance, the pledgee shall return the pledged property.

According to the agreement of the parties, if the debtor fails to perform the due debts or realize the pledge, the pledgee may agree with the pledgor to discount or give priority to the payment with the proceeds from auction or sale of the pledged property.

Where the pledged property is discounted or sold, it shall refer to the market price.