Trade Mark Licence Agreement Meaning

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. Similarly, the right to terminate the contract is important to the licensee, as it allows the licensor to terminate the contract immediately after the dementer of the taker or for other offences. In this way, the brand owner can stop the erosion of brand value if a taker does not meet the quality standards that consumers expect from the original supplier of brand-related goods or services. Choice of Law – Forum – The choice of legislation is preferable because it offers some security with regard to the application of the licensing agreement. In addition, courts often impose the choice of litigation clauses as long as the forum has a reasonable and logical relationship with the parties and the license. 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. Secondary liability in the context of the trademark is a judicial doctrine that has evolved and evolved over the past century through jurisprudence.

Read for one by discussion on assistant and secondary brand liability, including online marketplace, affiliate distributors, search companies, websites and suppliers of goods and services, term and services – Identify the type of goods or services that the licensee under the brand, the duration of the contract and the geographic area in which the brands are licensed. In addition to identifying goods or services, licensed uses are often indicated. The agreement may indicate, for example. B, that the following uses are permitted: manufacturing, sale, promotion, distribution and/or advertising. In addition, the licensee may restrict or authorize the following distribution channels, stationary trade, Internet sales, wholesale or retail trade or sales, limited to certain stores or consumer categories.