Trademark License Agreements

Goods or services, duration and territory – Identify the type of goods or services offered by the licensee under the trademark, the duration of the contract and the geographical area in which the marks are licensed. In addition to identifying goods or services, licensed uses are often indicated. For example, the agreement may state that the following uses are permitted: production, sale, promotion, distribution and/or advertising. In addition, the licensor may restrict or permit the following distribution channels, stationary retail, Internet sales, wholesale or retail trade or sale limited to certain transactions or categories of consumers. Other important concepts are definitions, geographical scope, time limitation/duration of licences, royalties and general terms and conditions of the contract; and Quality Control – A detailed quality control clause is essential for a trademark license. Control of the licensor is necessary, as the trademark constitutes the reputation and goodwill of the owner. For purchasing decisions, consumers rely on the reputation of a trademark owner with respect to the quality of goods or services. It is typical for the licensee to recite that “all goodwill acts for the benefit of the licensor”. Overall, licensing agreements are widespread, but trademark owners should have the help of an experienced consultant to establish clearly defined licensing agreements that protect both the goodwill of the trademark to be used and the rights of the licensor. Termination & Right to Relief – This provision is contained in a license to encourage the parties to cooperate in resolving minor disputes arising from the Agreement. In the event of an infringement, the defaulting party will have the opportunity to remedy this irregularity within a specified period. If the defaulting party continues to breach the agreement, the non-injurious party has the right to terminate the agreement.

(B) Sole – Rights are granted to only one licensee, but not to the exclusion of the licensor. One of the most important concepts is the determination of quality control to protect the goodwill of trademark rights; A trademark license agreement is a legal quality agreement between a trademark owner and another party who has agreed to use the mark on pre-approved terms, established between the contracting parties. . . .

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