One of the most important concepts is quality control to protect the goodwill of trademark rights; Goods or services, Duration and Territory – Identify the type of products or services that the licensee will offer under the brand, duration of contract and geographic area in which the marks are granted. In addition to identifying goods or services, licensed uses are often indicated. The agreement may indicate, for example. B, that the following uses are permitted: manufacturing, sale, promotion, distribution and/or advertising. In addition, the licensee may restrict or authorize the following distribution channels, stationary trade, Internet sales, wholesale or retail trade or sales, limited to certain stores or consumer categories. Brand licensing agreements are very different in length and subtleties. Although many licenses have a similar structure, each license contains different details and clauses based on the products or services granted. While it is more common to license brands as service marks, licensing agreements may include products or services. In addition, licensing agreements are often federally registered trademarks, but unregistered trademarks may also be licenses. As far as registration is concerned, some countries retain the legal obligation to cover licensing agreements. The United States does not require a trademark license from the United States Patent trademark Office. An experienced trademark lawyer can probably provide useful information about trademark licensing conditions.
This document provides general information and instructions for both potential licensees and licensees, as well as some examples of languages that should be incorporated into a comprehensive trademark licensing agreement. Arbitration – If a dispute were to arise as part of the licensing agreement, it is common practice to ensure that the dispute is resolved through arbitration proceedings, as it is a low-cost method. The clause will indicate whether the arbitration will be binding on the parties and what type of discharge will be obtained by the arbitration. The trademark licence fee is also another key element of the trademark licensing agreement. The more valuable the brand, the higher the royalty for the brand`s licensees. As such, it is not uncommon for licensees to set minimum sales targets or expectations in the licensing agreement. A well-developed trademark licensing agreement will also be specific to how the licensee will be paid, how often payments can be made and the consequences if payment is delayed. There are several elements of a trademark licensing agreement. The most important part of the agreement is to properly prove that the licensee continues to control the quality of goods or services sold in connection with the use of the trademark.