What Is a Trade Mark Licence Agreement

Litigation – This clause sets out the rights of the parties to enforce the trademark. One of the most important terms is the quality control provision to protect goodwill from trademark rights; In general, companies must meet strict requirements to obtain a standard trademark license from another business unit: find answers to your questions about trademarks, trademark use, protection, and enforcement. A Trademark FAQ with links to more detailed information to learn more about trademark rights. An experienced trademark lawyer can probably provide useful information about the terms of trademark licenses. Creating a family of brands with common elements that unite brands can be to your advantage. The audience should learn to recognize the common elements when they see them and put them in touch with you. These efforts can provide you with better protection for future brands that incorporate these familiar elements. Parties and Intellectual Property – Identify the parties to the Agreement and the intellectual property (Trademarks) that is licensed (these matters may be described in the Grant Clause). Goods or Services, Duration and Territory – Identify the type of goods or services that the licensee offers under the Trademark, the duration of the Contract, and the geographic area in which the Trademarks are licensed. In addition to identifying products or services, licensed uses are often indicated. For example, the agreement may state that the following uses are permitted: manufacturing, sales, sales promotion, distribution and/or advertising. In addition, Licensor may restrict or permit the following distribution channels: physical retail, Internet, wholesale or retail, or limited sales to certain stores or categories of consumers.

Trademark licensing should not be confused with trademark transfer, which completely changes the ownership of a trademark. Brand mapping is much easier than brand licensing. When a trademark is assigned, the licensor typically transfers all aspects of the trademark: Example 1: Sally`s “Sally`s Samplers” trademark for chocolate has boosted sales of her packaged chocolates. When a major confectionery manufacturer decides to use the brand, the company offers to buy it from Sally. If Sally sells the brand to the candy manufacturer, she can no longer use it and the candy manufacturer can use her brand as she wishes. He agrees to sell the rights to the trademark, but not the right to create derivative trademarks. Since Sally is not familiar with trademark law, she does not realize that her decision will not protect her from others who want to use “Aunt Lucy” in connection with products or services that find Sally rejected. A trademark license allows the licensee to use the licensor`s trademark in connection with certain goods or services for a fee. Although the terms of each license are different and can be freely negotiated between the licensor and the licensee, all licenses must include at least the following to be valid: Example 2: After selling “Sally`s Samplers” for a significant sum, Sally decides to retire from her business to sew and garden something. When she settles into her picturesque retreat in the mountains, she discovers a heart-shaped hoe in the garden shed. Her aunt Lucy had made the hoe many years ago.

Sally starts selling “Aunt Lucy`s Heart-Shaped Hoe” and uses the marketing experience she gained from selling “Sally`s Samplers”. The heart-shaped hoe is becoming more and more popular, and now a large manufacturer of garden tools wants to buy the brand and mass produce the hoe. Home > Brand Blog > Trademark License> What is a Trademark License? Is the trademark license right for me? Generic brands are common words that describe a product. These words cannot be protected by trademark rights. For example, the words gnocchi and tomato sauce could not be protected by a trademark for food cooked in the microwave. Quality Control – A detailed quality control clause is crucial for a trademark license. Control by the licensor is necessary because the trademark represents the reputation and goodwill of the owner. Consumers rely on the reputation of a brand owner for the quality of goods or services when making purchasing decisions. It is typical for the licensee to recite that “all property is in the interest of the licensor”. A trademark license (which is different from a trademark assignment) is essentially an agreement in which a trademark owner (the “Licensor”) allows someone else (“Licensee”) to use Licensor`s trademark in connection with certain products or services. Although a trademark license agreement does not generally need to be required in writing to be legally enforceable, it is strongly recommended that all trademark license agreements be written and signed by both licensor and licensee. A trademark assignment is a document used to transfer rights to a trademark (i.e., logo, name or symbol) to a new owner, creditor, or even in connection with the conduct of another contract negotiation.

An assignment may either bear all the rights attached to a mark or be restricted in one form or another. Trademarks prevent companies from creating the same or similar elements to promote their own products and services that could cause confusion or mislead the public. A similar or even identical artistic work may be permitted by copyright if the work created was not influenced by the original work. Arbitration – If a dispute arises under the License Agreement, it is customary to provide that the dispute will be resolved by arbitration, as this is a cost-effective method. The clause specifies whether the arbitration is binding on the parties and what type of recourse will be obtained by the arbitration. A trademark license is an agreement between the owner of the trademark and another party who receives permission to do something that would otherwise constitute a violation of the rights of the owner without a license. The person granting the license is referred to as the “licensor,” and the person who obtains the license or operates the trademark is referred to as the “licensee.” A trademark license agreement has several elements. The most important part of the agreement is to properly demonstrate that the licensor retains control over the quality of the goods or services sold in connection with the use of the trademark. .