If you share your ideas and assets with another company, you are taking a considerable risk. It goes without saying that you should do your research. Work with a licensee who specializes in using your brand – ideally, you stay in the same industry. The geographical scope of a trademark license agreement is another important element of a trademark license agreement Since a licensor may license the trademark to multiple licensees, it is important that the license agreement clearly delineates the geographical areas in which the licensee may use the trademark. For example, a licensor may grant trademark rights to different licensees based on the continent, state, or city where they are located. This is particularly common in the case of franchise agreements, as there may be multiple licensees overlapping in the same area. Therefore, the trademark license agreement must determine whether or not the license is exclusive to the licensee and whether the licensee can sublicense any of the rights granted by the licensor. There are a number of things you should first keep in mind before signing a licensing agreement. Among the most important: theme – a complete description of the product or service that is offered for licensing. This is also the area in which patent, copyright or trademark numbers may need to be added. Contract negotiations are brutal. Start with the simplest components to build some momentum.
In a very short time, you will have developed a natural rhythm to integrate and omit certain factors with strength and confidence. Even as a licensor, time is on your side. Don`t feel the need to fall into anything. Christian, Glynna K. “Joint ventures: understanding issue licensing.” The Licensing Journal. October 2005. Effectively negotiating a license agreement can be laborious and tedious. Here too, each agreement is unique, but the negotiation process is first and foremost the same. This document provides general context and instructions for licensors and potential licensees, as well as an example language that should be included in any global trademark licensing agreement.
As always, there can be downsides to success. Your brand may one day reach too many people or generate too much activity, leading to counterfeit attempts by other competitors. By licensing your brand at an early stage, you will learn how to proactively protect your intellectual property through protective measures. Our package of trademark licensing agreement templates, designed by a lawyer, contains two trademark and intangible property licensing agreements – a shorter 16-page document for smaller, less complicated contracts, and a 40-page longer document for longer and more complex agreements. Both are modeled according to contracts developed by Newell-Rubbermaid, a leading provider of branded licenses. The definitions common to most contracts are also an important part of more complex trademark licensing agreements. In order to avoid confusion between the parties, it is important that the licensor clearly specifies what certain words or terms used in the agreement mean, so that there is no confusion between the parties and to avoid potential conflicts in the event of a dispute. . . .