On the other hand, when granting a non-exclusive license, the trademark holder may appoint several licensees in a single jurisdiction or use the trademark in that country with the licensee. 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. From a licensee`s point of view, the quality control rules for a trademark license are the most important. The licensee must constantly ensure that the licensee`s products/services meet a particular standard, otherwise the value of the licensee`s brand could be damaged. In addition, licensees often require that advertising and advertising materials produced by their licensees be authorized prior to public broadcast. The absence of a licensee to require and impose strict quality control may result in the licensee`s brand being vulnerable to third-party attacks and may ultimately be considered abandoned. 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. 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.
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. A trademark license (distinct from a trademark assignment) is in fact an agreement in which a trademark holder (the “donor”) allows another person (“taker”) to use the licensee`s trademark in connection with certain products or services. Although a trademark licensing agreement is generally not required in writing to be legally enforceable, it is strongly recommended that all trademark licensing agreements be written and signed by the licensee and the licensee. Definitions common to most commercial contracts are also an important part of the complexity of trademark licensing agreements.