Trademark Licensing – Definition

Trademark Licensing can be defined as the right of the trademark owner to authorize other person to use the trademark. The entire things is controlled and executed by a Trademark licensing agreement.

 Trademark Licensing – Benefits

 It helps an owner to expand his or her reach by partnering with other companies who are a part of the same business domain.

• It helps brands to earn royalty via licensing and maintaining the quality of products and services.
• For small business getting a license to use big brand names is in itself an opportunity that can open up more opportunities.
• For Software and Pharmaceutical businesses, Trademark Licensing sits at the heart of their businesses.

Trademark Licensing Agreement – Important pointers

Brand Licensing Agreement is very important for a business when it comes to eliminating challenges and legal issues, if any, in the future. Key pointers to be included in the agreement are –

• Amount of royalty fee or percentage of revenues to be shared between parties
• Geographical area within which licensee can use the brand
• Possibility or restriction on sub-licensing of trademark
• Quality control clause to ensure that the products sold by the licensee meets Licensor standards
• Grounds for termination of Licensing Agreement

Trademark Licensing Agreement – Registration

 In order to keep things transparent for both the parties involved, Trademark Licensing Agreement Registration must be done. Within 6 months of the date of agreement, you need to submit an application for Trademark Licensing Agreement Registration at the Indian Trademark Department.

Trademark Licensing and Trademark Assignment – Difference

 Two of these might sound similar, but are actually different in many ways. Trademark Licensing is permission granted to use a given brand name and Assignment is transferring or selling the trademark to others. Also, licensing is for a limited period of time.