When y'all registered your trademark with the USPTO, y'all may not accept considered one twenty-four hours allowing others to utilize it.  Now, equally your business expands and your brand is becoming more recognizable, it may be time to consider licensing your trademark.  Trademark licensing is an agreement in which a registered trademark owner, the licensor, grants some other political party, the licensee, permission to make and distribute products or services under that trademark.  The licensee pays the licensor a fee to employ the trademark, either paid in royalties, a lump sum, or some other payment type agreed upon by both parties.

Licensing a trademark tin can accept many benefits, including increased brand awareness and additional revenue.  However, those benefits can only be seen when the process to license the trademark has been done properly.  Creating a trademark licensing agreement that is fair to all parties involved, all the same withal protects your mark, can be a challenging procedure.  Consider the post-obit information about how to properly license a trademark.

How Exercise You Properly License a Trademark?

  • Create requirements for prospective licensees. Know how they intend to apply the mark in the hereafter.
  • Get it in writing. Develop a detailed licensing agreement that is signed by both licensor and licensee.
  • Piece of work with an experienced trademark attorney, who has noesis in both drafting agreements and enforcing proper apply.
  • Establish make guidelines that conspicuously dictate how and where the trademark can be used.

Create Licensee Requirements

Your trademark is a valuable nugget for your business.  But as you wouldn't allow simply anyone drive a company vehicle or run your manufacturing equipment, you shouldn't allow just anyone use your trademark.  Kickoff, analyze the potential licensee'south business programme.  Is the business financially stable?  Is it well managed?  These are important factors to consider, as you lot wouldn't want to grant trademark rights to a failing business organization, or one that may misuse the mark in the future.

Next, make up one's mind how the potential licensee intends to apply your trademark.  As the trademark owner, you are even so responsible for the quality command of the products and services offered nether the marking.  In addition, your brand'southward reputation is tied to the use of your trademark, no thing who is using information technology.  Therefore, it is critical to know how your trademark will be used and where it will exist displayed.  Many universities, who oft license their trademarked logos, have requirements prohibiting licensees from displaying the mark on sure items such every bit alcohol and tobacco products.  Constitute the requirements that all-time reflect your brand earlier you enter into a licensing agreement.

Go it in Writing

A trademark licensing agreement does non need to exist written downwardly to be legally enforceable, but a unproblematic word-of-mouth licensing agreement is much more challenging to enforce.  For this reason, it is highly recommended that a written agreement is created and signed past both the licensor and the licensee.  A written understanding will provide both parties with a clear agreement of the licensee'due south rights and volition be easier to enforce should a trademark dispute arise.

Be certain to be thorough in the agreement, including all necessary information.  Each licensing agreement is unlike and based on the needs and wishes of the parties involved.  However, about licensing agreements should include the post-obit:

  • The legal names of both licensor and licensee
  • The type of license beingness offered (exclusive, sole, or non-exclusive)
  • Whatsoever trademarks existence included in the agreement
  • The geographic region where the licensee may offering goods or services with the trademark
  • The products or services the licensee may offer with the trademark
  • Quality control provisions that outline how the trademark may be used.
  • Payment information (Will licensor receive royalties, a lump sum payment, etc.?)
  • Effective dates for utilise of the trademark past the licensee

Piece of work With a Trademark Attorney