A trade mark License is where you are providing a party permission to use your Mark in a way that otherwise would be deemed an infringement. A Licence regulates this relationship between the trade mark owner and the other party, allowing the trade mark owner to make money off this relationship. In short, a License is a form of contract agreement.
A License is a form of contract therefore contract rules apply. These include but are not limited to: consideration (what trade mark elements are being considered in the contract), fees (for both parties), the contract needs to be clear and concise as well as noting a clear plan, if a breach of contract occurs e.g. recovery mechanisms. It is advised you use a trade mark firm, like ourselves, to write your License especially if the contract is covering a number of jurisdictions. This is because it is important to ensure that the legalities for each country are taken into consideration and no breach of laws occur.
There are many reasons for trade mark Licensing such as: to reach new markets, increase brand recognition, distribute workload and ultimately improve your business.
Trade Mark Licensing can be divided into three different categories:
Exclusive License: the licensee has sole commercial rights over the trade mark, incurring both profits and losses associated with this. The licensor in this case has no benefits other than a fee upon agreement.
Sole License: both the licensee and the licensor have rights over the use of the mark. No further licenses can be granted for the mark under this clause.
Non-exclusive License: the licensee, licensor and outside individuals can use the trade mark if they are assigned to do so.
If you have any questions on trade mark Licensing or would like us to draft a license on your behalf, please do not hesitate to contact us today.