Trademark Licensing Agreement Definition

A trademark is diluted when similar marks are used in any context. Similar brands use the reputation of the original brand. They can confuse consumers who are unsure of the brand they prefer, who blur the distinctiveness of the original brand, or who damage the reputation of the brand. Trademark owners should act quickly to stop dilution, which is a kind of trademark infringement. Arbitration – In the event of a dispute under the license agreement, it is customary to provide that the dispute is settled by arbitration, as this is an inexpensive method. The clause specifies whether the arbitration procedure is binding on the parties and what kind of remedy is obtained through the arbitration. Finally, trademark licensing agreements have the same general provisions as those contained in commercial agreements, including, but not limited to: description of the parties; the intention of the parties that merged them into a legally binding treaty; if the contract creates other business relationships; the legislation in force; and, where applicable, exemption; limitation of liability; Warranties, etc. Harvard University is an example of a company that regularly has trademark licensing agreements. An experienced trademark lawyer can probably give a useful overview of trademark licensing conditions. Overall, licensing agreements are widespread, but trademark owners should have the help of an experienced consultant to establish clearly defined licensing agreements that protect both the goodwill of the trademark to be used and the rights of the licensor.

The license agreement lasts only five years. On that date, Sally and that manufacturer may decide whether the licence should be renewed. This decision gives Sally the control she wants, but it also reduces the value of the brand for the entity the brand buys. Generic brands are common words describing a product. These words cannot be protected by trademark laws. For example, the words gnocchi and tomato sauce could not be protected by a trademark for a food product cooked in the microwave. The licensor usually sets the royalties, but may be willing to negotiate. In accordance with the agreement, the amounts of licences and the frequency of payments should be included in the licence agreement. WFOE will enter into the Trademark License Agreement with United Strength Vehicle Service under which United Strength Vehicle Service has agreed to grant the WFOE Group the non-exclusive right to use the Trademark “” in the PRC. These are some of the most common provisions contained in a trademark license agreement, if you need advice on more detailed matters, please contact our office for a courtesy consultation with one of our trademark attorneys. Parties and Intellectual Property – Identify the parties to the agreement and the intellectual property (the marks) that is licensed (these issues may be described in the grant clause).

The deposit is a flat rate paid at the beginning of the agreement….