# TMEP § 1201.03(c): Common Stockholders, Directors, or Officers

> Federal · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/TMEP_S1201.03(c)

## Section

- **Citation:** TMEP § 1201.03(c)
- **Heading:** Common Stockholders, Directors, or Officers
- **Jurisdiction:** Federal
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** USPTO TMEP / Chapter 1200 - Substantive Examination of Applications / TMEP § 1201.03(c)

## Text

Corporations are not "related companies" within the
meaning of §5 of the Trademark Act,
15 U.S.C.
§1055
, merely because they have the same stockholders,
directors, or officers, or because they occupy the same premises.
Great Seats, Ltd. v. Great Seats,
Inc.
, 84 USPQ2d 1235, 1243
(TTAB 2007) (holding that the fact that both the applicant corporation and
the corporate user of the mark have the same president and controlling
stockholder, and share the same premises, does not make them related companies);
In re Raven Marine,
Inc.
, 217 USPQ 68, 69
(TTAB 1983) (holding statement that both the applicant corporation and the
corporate user of the mark have the same principal stockholder and officer
insufficient to show that the user is a related company).
If an individual applicant is not the sole owner of
the corporation that is using the mark, the question of whether the corporation
is a "related company" depends on whether the applicant maintains control over
the nature and quality of the goods or services such that use of the mark inures
to the applicant’s benefit. A formal written licensing agreement between the
parties is not necessary, nor is its existence sufficient to establish ownership
rights. The critical question is whether the applicant sufficiently controls the
nature and quality of the goods or services with which the mark is used.
See
Pneutek, Inc. v. Scherr,
211 USPQ 824, 833 (TTAB 1981)
(holding that the applicant, an individual, exercised sufficient control over
the nature and quality of the goods sold under the mark by the licensee that the
license agreement vested ownership of the mark in the applicant).
Similarly, where an individual applicant is not the
sole owner of the corporation that is using the mark, the fact that the
individual applicant is a stockholder, director, or officer in the corporation
is insufficient in itself to establish that the corporation is a related
company
goods sold under the mark by the licensee that the
license agreement vested ownership of the mark in the applicant).
Similarly, where an individual applicant is not the
sole owner of the corporation that is using the mark, the fact that the
individual applicant is a stockholder, director, or officer in the corporation
is insufficient in itself to establish that the corporation is a related
company. The question depends on whether the applicant maintains control over
the nature and quality of the goods or services.
See
TMEP
§1201.03(b)
regarding use by wholly owned related
companies.

## Nearby sections

- [TMEP § 1201 Ownership of Mark](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.md)
- [TMEP § 1201.01 Claim of Ownership May Be Based on Use By Related Companies](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.01.md)
- [TMEP § 1201.02(a) Identifying the Applicant Properly](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.02(a).md)
- [TMEP § 1201.02(c) Correcting Errors in How the Applicant Is Identified](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.02(c).md)
- [TMEP § 1201.02(d) Operating Divisions](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.02(d).md)
- [TMEP § 1201.02(e) Changes in Ownership After Application Is Filed](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.02(e).md)
- [TMEP § 1201.03(a) No Explanation of Use of Mark by Related Companies or Applicant’s Control Over Use of Mark by Related Companies Required](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.03(a).md)
- [TMEP § 1201.03(b) Wholly Owned Related Companies](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.03(b).md)
- [TMEP § 1201.03(c) Common Stockholders, Directors, or Officers](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.03(c).md)
- [TMEP § 1201.03(e) License and Franchise Situations](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.03(e).md)
- [TMEP § 1201.04 Inquiry Regarding Parties Named on Specimens or Elsewhere in Record](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.04.md)
- [TMEP § 1201.05 Acceptable Claim of Ownership Based on Applicant’s Own Use](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.05.md)
- [TMEP § 1201.06(a) Applicant Is Merely Distributor or Importer](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.06(a).md)
- [TMEP § 1201.06(b) Goods Manufactured in a Country Other than Where Applicant Is Located](https://www.frixlaw.com/law-library/statutes/TMEP_S1201.06(b).md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/TMEP_S1201.03(c). Check the current official text before relying on it. Not legal advice.