What happens to the community's name?

I am the fellow who runs a blog at his community and had some issues with the sponsor and board (the majority of which are assigned by the sponsor).

I had dinner with a friend who is a patent/trademark attorney, and he had asked me what happens to the name of the community once the builder is finished and leaves the premises. Since a U.S. federal trademark registration was filed by the builder for the name before the community was built, what happens when he leaves?

Does he have any control over the use of the name after he leaves? Can he take it with him?

No one in my community seems to have any idea. Seems to me that there is precedent for this. Anyone know?
Steve

I agree. It is assigned to the corporation (the HOA) and their exclusive ownership. Developer signed off on any and all ownership of the corp.

Robert, I don't know about South Carolina or other states, but at transition, our "charter" and "registration" didn't change.

Only the names and addresses of the officers and directors.

The organization stayed the same, simply "manned" (peopled?) by different responsible parties.

The name never dissolved.

Now, if the HOA is actually dissolved, legally? Then that's a horse of a different color.

At that point, I would agree, the name would be up for grabs.

It may not be as simple as the name automatically transferring to the association when the developer is gone.

He has another development which he is just now breaking ground on about 20 miles away that uses the same trademarked name but with something like "golf club and spa" instead of ours which is something like "tennis club and spa" after the trademarked title.

It would seem to me that the builder would have an interest in protecting his trademarked property especially in light of the fact that it might negatively impact his new development if the name was used in a manner that was distasteful to him since people would automatically assume the two properties were related.

The board is not interested in giving out any more information than they absolutely have to. So, how do I get to the bottom of what happens to the name after the sponsor has sold all the units in our community?
Steve

With all due respect, SteveS, yes it REALLY is just that simple.

It doesn't TRANSFER to the association, the ASSOCIATION OWNS it.

The association is a legal entity in and of itself. The developer has certain rights and control when he is the chief cook and bottle washer for the organization.

And he is perfectly within those rights to build as many ENTITIES that have a similar name since he's the one who is putting the $$$$$ up to do so.

Please don't take this the wrong way, but you certainly are very stubborn, aren't you?

I believe the "board isn't interested in giving out any more information than they absolutely have to" because they already know that whatever they tell you is going to fall on deaf ears. The association "owns" its own name. The developer merely created it and registered the corporation (or legal entity) with the state. You can't have it until the association no longer exists, no matter how many people ownership or management of the legal entity transfers to.

Oh, and guess what?

A developer in between my development and another down the road has taken the FIRST name of OUR development and combined it with the LAST name of the development on the other side and created an entirely new subdivision.

If one were to drive down our road and pass all three, one might think they all belonged to the same legal entity or corporation. All three have different developers who started them.

And trust me, not all three of the developments are of the same caliber.

The development in the middle is not managed well, the covenants aren't enforced and there are considerably more foreclosures.

It's not uncommon at all for developers to create developments with near identical names.

I suppose for some of them it becomes a type of signature.

I have no idea what you are trying to imply by reducing the name of a legal entity to a "thing" that someone "sponsors." The name is not separate from the legal entity. The legal entity owns it, it doesn't "sponsor" it.

I take it you are trying to build a case for taking ownership of the name of your association?

Steve,

Why would you think the name of the HOA is a US federal tradmark registration? The name is submitted to the Secretary of State who determines whether or not there is another corp by that name. If not, then the name can be used by the developer. The corp never belongs to the developer personally; it is a corp formed for the members of the assn. In the beginning the developer is the only member, but once one lot is sold he no longer holds that distinction. The name stays with the corp as long as the corp is in existence. When the developer leaves he does not take the corp with him, it remains with the members of the HOA.