Fatwa ID: 07674

Answered by Alimah Shireen Mangera-Badat

Question:

Any Fatwā regarding selling a trademark?

In the name of Allah, the Most Gracious, the Most Merciful

Answer: 

In Hanafi Fiqh, the concept of selling a trademark would fall under the broader category of selling intangible rights or benefits (حقوق معنوية). This area of Islamic jurisprudence is relatively modern, and classical scholars did not deal directly with the concept of trademarks. However, Islamic jurists have used analogical reasoning (قياس) to address such contemporary issues.

The Concept of Mal (مَال)

In Hanafi Fiqh, for something to be legally considered subject to sale, it must be classified as “Mal” (مَال), which is defined as anything that is beneficial, can be owned, and is of value. Traditional Hanafi jurists defined “Mal” as something that can be physically possessed and stored (عين يمكن إحرازه وحيازته). ¹

However, contemporary Hanafi scholars have expanded the interpretation of “Mal” to include intangible assets like intellectual property, including trademarks, because these have recognised value and provide benefit. The reasoning is that the “manfa’ah” (benefit) derived from these assets is similar to the benefits derived from physical property, and therefore, they can be traded.

A trademark is essentially an intellectual property right that represents a company’s brand, distinguishing its goods or services from those of others. It holds value as it can influence customer decisions and has a direct impact on the business’s profitability.

Contemporary Hanafi jurists, including scholars from institutions like Darul Uloom Deoband have issued fatwas permitting the sale of trademarks, reasoning that:

1. Benefit and Value (منفعة وقيمة): A trademark has a recognised economic value and provides a clear benefit. It falls under the category of “manfa’ah” which can be exchanged.
2. Ownership and Transferability (الملكية والإنتقالية): Since the trademark is owned by the company and can be transferred to another entity, it fulfills the conditions of “Mal”. Where Surah Nisa: 29 has stipulated “O you who believe, do not consume one another’s wealth unjustly or unfairly except when it is through lawful trade by mutual consent…..”
3. Permissibility (إباحة): The sale of such rights does not inherently involve anything haram (prohibited), and as long as the trade or business associated with the trademark is permissible, selling the trademark itself is also permissible.²

“Everything that is considered valuable property is permissible to sell, and the sale of intangible rights like trademarks is permissible if they entail benefit and can be sold and utilised.”

According to Hanafi Fiqh, selling a trademark is permissible as long as the trademark has value, provides benefit, and its sale does not involve anything inherently haram. The key consideration is that the trademark is recognized as an asset with “manfa’ah” that can be owned and transferred, which aligns with the principles of Islamic commerce.

Only Allah knows best.

Written by Alimah Shireen Mangera-Badat

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

1 Page 7 Iqtisaad Islami

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“وكل ما كان مالا متقوما جاز بيعه، وبيع الحقوق المعنوية مثل العلامات التجارية جائز إذا ترتب عليها منفعة وأمكن بيعها والانتفاع بها.”