Radio frequency identification (RFID) is a contactless automatic identification technology that is used in various fields. Its easy-to-read feature is particularly suitable for applications in logistics supply chain management, and it permits business partners in a supply chain to effectively control their inventory and share information. Vendor managed inventory (VMI) is an inventory comanagement approach used for integrating enterprise resources and inhibiting the bullwhip effect. Moreover, a vendor can manage inventory according to a mutual agreement for sharing inventory costs, which were previously solely borne by the dealer. An RFID multiownership transfer protocol intended for use in VMI environments is presented in this paper. The protocol was developed to solve the difficulties in RFID system implementation in VMI environments and to improve the efficiency of inventory cost allocation. Furthermore, the protocol was designed to handle one object with multiple owners according to the situations encountered; ownership can be assigned to particular users or terminated as required. Possible security concerns and strategies to prevent such attacks are discussed. The proposed protocol is referred to as multiownership transfer protocol with a trusted third party (TTP) because it allows business partners to manage their inventory in the control of the TTP. It also provides a mechanism to divide business into two levels for facilitating information privacy.