When talking about licensing, entering into a trademark license agreement is synonymous with multiple advantages both for the licensor, the one who grants the use of the trademark, and for the licensee, i.e. the one who benefits from its use.
The licensor, i.e. the owner of the brand, through licensing agreements, has the opportunity to make its presence on the market more effective, increasing the diffusion of its products/services. p>
The licensee, i.e. the company interested in the brand, in exchange for the royalty payment, sees its visibility, recognition and authority promoted thanks to the support of a consolidated and authoritative reality.
The agreement and the subsequent registration of the user license agreement are essential in order to avoid uncertainties regarding the real ownership of a trademark. The contract establishes precisely who among the parties has the right to use it.
The basic requirements
The license agreement relating to a trademark must necessarily contain a series of elements established by law, in particular by the European Union.
It must be clear, exhaustive and expressly define the object, or the licensed brand, the covered products/services from any patent for which the license itself can be exploited.
Furthermore, the contract must also specify the territorial scope within which the licensee has the right to exploit the trademark, as well as the timeframe granted for the its use and the royalties charged to it.
Moreover, the possibility of withdrawal or revocation by the trademark owner is also established, if the licensee has not complied in part or in full with any obligations established in the contractual phase.
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How a trademark assignment agreement works
The regulation of the transfer of use of a trademark can also establish exclusive use which, however, naturally provides for higher royalties as an implicit condition of the exclusivity of use.
The same royalties, whether or not the license agreement is exclusive, may be established:
- Proportionally to sales
- Providing a fixed or variable fee
The standards necessary to guarantee that the trademark or patent are not in any way distorted or deprived of the original authority and credibility can also be expressed in it, attributing to the licensor any control powers useful for monitoring its effective and appropriate use by the licensee.
Likewise, through the license agreement, all the "rules of conduct" can be established which both parties must implement in the event of infringements, effectively overcoming any critical issues.
License agreements experience
An agreement of this kind is extremely important that it is managed correctly, in full compliance with the needs of the licensor and the licensee.
Brand Oasi, offers its thirty years of experience in the licensing sector. It offers a professional and personalized service dedicated to licensee search, related analysis strategy and brand development, up to mediation through negotiations and related contracts.