What Is A Trademark License Agreement

The geographical scope of a trademark licensing agreement is another important element of a trademark licensing agreement since a licensee can license multiple takers, so it is important that the licensing agreement clearly defines the geographic areas in which the licensee can use the trademark. For example, a licensee may grant trademark rights to different takers based on the continent, state or city in which it is located. This is particularly often the case in franchising agreements, as there may be several overlapping licensees in the same area. Therefore, the trademark licensing agreement must indicate whether the license is exclusive or not exclusive to the taker and whether the licensee can sublicensing one of the rights granted by the licensee. What do we need to get a license in Singapore? Of course, the above five provisions are not the only ones considered by parties to a trademark licence. Ideally, a trademark license should also explicitly state (1) whether the licence is exclusive or not, 2) the duration of the licence, 3) whether the licence can be renewed and under what conditions, (4) the amount of the licence`s payment or other compensation from the donor and when these payments are to be made, 5) the responsibilities of both parties at the end or expiry of the licence , and (6) the consequences of a licence breach and the date of the licence`s breach and (6) in which the infringement must be corrected. A trademark licensing agreement may be established as a separate contract or as part of a general commercial contract between the parties. Brand owners have the option of granting an exclusive or non-exclusive license for their brands. For an exclusive license, the trademark holder appoints a licensee in each country and only the licensee in question has the right to use the trademark in the country concerned. You`ll find some provisions in most brand licenses.

A licensing agreement should address the following issues: At IPHub Asia, we specialize in brand protection and design in Asia, with a strong focus on Southeast Asia. If you have any questions about brands, please contact. You can also visit our website to learn more about our services. 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. one. Type of licence (exclusive or non-exclusive license) (A) Exclusive rights are granted to the licensee to the exclusion of any other, including the donor, and this may also apply to a specific geographic area or region. One of the most important concepts is quality control to protect the goodwill of trademark rights; The duration and right to terminate the terms of a trademark licensing agreement are also important, as they give the licensee the opportunity to license the mark for a short period of time to determine whether the commercial relationship is profitable enough to extend for a new term.