If you want to use another company's trademark on your own products or want to allow another business to use your mark, using a trademark license agreement can protect your rights. Find out more about required provisions and considerations today.
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by Cindy DeRuyter, Esq.
Cindy DeRuyter, Esq., has been writing for LegalZoom since 2018. She earned a Juris Doctor from Mitchell Hamline Scho...
Updated on: January 10, 2024 · 3 min read
When you enter into a trademark license agreement with another business, you have certain rights and obligations. If you are the licensor, you grant another party the right to use your trademark(s) on products or services in a specific geographic area. If you are the licensee, you agree to pay the other business in exchange for the rights to use their mark(s).
Simply put, the license agreement documents the terms under which one party may use the other party's trademark. This type of legal contract is common and has a variety of uses for products and services, including clothing, food wrappers, and beverage labels.
Many well-known consumer product companies license their trademarks, but the practice is not limited to corporate entities. Musical performers, artists, and others also use these agreements.
In the case of a musical performer who has trademarked his or her image, name, or other protected intellectual property, a license gives permission to someone else to use those marks for commercial purposes on t-shirts, posters, and other products. The licensee pays royalties to the musician in exchange for this right.
Your trademark license agreement should be written, include negotiated terms and provisions, and be signed by all parties. To be valid, your agreement must address and include each of the following provisions:
Trademark license agreements often include additional requirements. These include the following:
License agreements are limited in scope, granting the right to use a specific trademark under certain terms. The licensor can enforce the agreement but only to the extent of the covered mark.
In contrast, franchising a business is broader. Franchise agreements establish additional controls and interdependencies between the franchisor and franchisee, governing how the franchisee conducts business.
When drafting license agreements, take care to avoid inadvertently triggering franchise law by giving the licensor control that extends beyond the trademark.
Whether you have a trademark that other businesses want to use or you want to use another company's mark, a license agreement can help protect your company and brand.
You have more than one option for getting a trademark licensing agreement. Work with an attorney or download a trademark license agreement to create an agreement designed to protect your rights.
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