Licensing documents will be filed by our Startupji team
Trademark Assignment Process Compleated
About Trademark License
If owner of the trademark authorizes another person to use the trademark, it means trademark licensing. Right for usage of registered trademark is given through Trademark Licensing agreement.
i) Trademark Licensing helps in business growth as it helps the brand owner in partnering with others of similar business.
ii) It aids well established brands in earning royalty from trademark through licensing.
iii) Trademark license to use large brands will provide large business opportunities to small entrepreneurs.
iv) For Pharmaceuticals and Software business, trademark license plays a key role and hence can be termed as heart.
A trade licensing agreement must be made between two parties and registered. Within 6 months of registering trademark licensing agreement, an application to register the agreement needs to be submitted to Indian Trademark Department.
To reduce legal issues and face challenges at growing stages of business, Trademark licensing plays a crucial role. The major points to be included in branding licensing agreement are below:
i) Amount of royalty fees or percentages of revenues to be shared between parties.
ii) Geographical area within which licenses can use the brand.
iii) Possibility or restriction on sub-licensing of trademark.
iv) Quality control clause to ensure that the products sold by the license meets Licensor standards.
v) Grounds for termination of Licensing Agreement.
Trademark Licensing and Trademark Assignment are two different procedures though they look similar.
Licensing of trademark permits others to use the brand name while Assignment of trademark is official transfer or selling of trademark to others.
However, licensing is granted for a limited period.