Let us Understand What is Trademark Licensing

Trademark licensing is a kind of merchandise agreement by which owner (called as licensor or proprietor) of the trademark authorizes other person (called as licensee) to use the trademark. Licensee can sell or distribute products or services offered by licensor who in return gets a royalty for exchange of his trademark. It’s been observed that fashion, sports and entertainment industries uses trademark licensing usually as compared to other industries. Trademark licensing is regulated by Trademark Licensing Agreement by the consent of both the parties.

What are the Types of Trademark Licenses?

Exclusive License
In this type of licensing, licensee has all commercial rights whereas licensor gains a sum of money for entering in the agreement.

Sole License
In this type of licensing, both the licensee and licensor share the profit as per the terms and conditions mentioned in Trademark Licensing Agreement.

Non-exclusive License
In this type of licensing, licensee, licensor and any other individual can use the trademark.

What to Include in Trademark Licensing Agreement?

Trademark licensing agreement plays a crucial role to deal with legal challenges that may occur at later stage. Thus following points are must to include in trademark licensing agreement:

  • ⦁ Limitations on sub-licensing of trademark.
  • ⦁ Royalty Charges or percentage of profit to be shared between parties
  • ⦁ Clear instruction about geographical area where use of license is permitted.
  • ⦁ Justification for Licensing Agreement if terminated by the Licensee.
  • ⦁ Quality Control Clauses making sure about products sold by the licensee.

  • 4500*
    Professional fees

Advantages of Trademark Licensing

Trademark holder’s has chance to grow their reach by creating a new business partnership within similar businesses under their brand name.

Well established brands can easily earn good amount of royalty by licensing their trademark to other similar businesses while concentrating on quality of product.

It is always good for small entrepreneurs to run a business under well established brand material instead of focusing on other lengthy business operations that leads to become a brand.

Contact Matriye Now and proceed with your trademark licensing promptly and easily.

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