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. (C) Not exclusively – rights may be granted to other third-party licensees, and the licensee may also use the trademark in trade. You`ll find some provisions in most brand licenses. The following issues should be addressed in a licensing agreement: this document provides general information and instructions for potential licensees and licensees, as well as an example language that should be included in a comprehensive trademark licensing agreement. Quality control – A detailed quality control clause is essential for a brand license. The control by the licensee is necessary, because the mark represents the reputation and goodwill of the owner.
Consumers rely on a brand owner`s reputation for the quality of goods or services when making purchasing decisions. It is typical for the licensee to recite that “any goodwill for the benefit of the licensee inures”. An experienced trademark lawyer can probably provide useful information about trademark licensing conditions. These are some of the most common provisions contained in a trademark licensing agreement, if you need a lawyer for more detailed questions, please contact our office for a courtesy consultation with one of our brand lawyers. A trademark licensing agreement is a legal contract between a trademark holder and another party who have agreed to use the trademark under pre-approved and established conditions between the contracting parties. Termination and right of appeal – This provision is contained in a licence to encourage parties to cooperate in the settlement of small disputes arising from the agreement. In the event of an infringement, the defaulting party will have the opportunity to remedy this deficiency within a specified period of time. If the defaulting party continues to violate the agreement, the uninjured party has the right to terminate the contract. 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. Overall, licensing agreements are very common, but trademark holders should seek the help of experienced consultants to design clearly defined licensing agreements that protect both the brand`s positive will to use and the licensee`s rights.