29 Jan 2021

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What is a trademark licensing agreement?

Trademarks are commonly licensed, to permit parties other than the owner to use a trademark under certain circumstances. Most franchise agreements, for instance, include a trademark license. It is extremely important that the trademark owner retains some control over the use and character of the trademark by the licensee by imposing some standards. A trademark license typically contains provisions as pertaining to the territory where the licensee may use the trademark; the goods and/or services that the licensee may offer under the trademark; the duration of the license; whether the license is exclusive; and the quality of the goods and/or services the licensee may offer under the trademark. A license provides the trademark owner with an opportunity to generate new revenues and increase its visibility.