A trademark license, as the name suggests, is a mutual agreement between the licensor (the trademark owner) and the licensee (another party) on the usage of a trademark in commerce. The ownership of the trademark, however, is retained by the owner only in the licensing of a trademark. Licensing of Trademark
The licensing of trademarks plays a critical role in the manner goods and services are marketed, distributed and sold not only nationally but internationally as well.
Licensing of Trademark
Provisions provided to the Licensing of Trademark
- Licensor has the provision to keep a quality control check over the good or services produced or offered by the licensee.
- Provisions to govern the tenure of the license agreement.
- Provisions to govern the territory mentioned in the license.
- Provisions may include the royalty rate that a licensee has to pay to the licensor in lieu of the use of the trademark.
- Provisions to record the license.
- Provisions to govern the jurisdictions mentioned in the license.
- Provisions to govern the exclusive rights to use the trademark by the licensee.