Trademark License Agreement
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A trademark license agreement allows trademark owners to expand their brand’s reach without giving up ownership. If you are licensing your trademark, use our professionally written trademark license agreement template.
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What is a trademark license agreement?
A trademark license agreement is a legally binding contract that grants permission from a trademark owner to another party to use the trademark under specific terms and conditions. This agreement allows businesses to expand the use of their brand without transferring ownership.
This template provides clear terms and conditions of licensing a trademark, including:
- details of the parties involved (their full names and addresses);
- description of the licensed trademark;
- type of granted license and geographical usage;
- royalties and payment schedule; and
- duration and termination.
The parties involved in a trademark licensing agreement are the licensor and the licensee. The licensor is the legal owner of a trademark, while the licensee is a person who wishes to use a trademark in exchange for agreed remuneration.
Unlike the trademark assignment agreement, where the owner transfers their full title and interest in the trademark to a third party, the owner under the present document is able to retain their ownership.
How to draft a trademark license agreement template?
Drafting a trademark license agreement template involves defining the scope and limitations of trademark use. It might be a challenging task for both lawyers and non-lawyers. No worries, we’ve got you covered here. Below you can find a short checklist of all things a good trademark license agreement should have.
Description of the Trademark
A licensing contract shall identify the trademark that is being licensed, including:
- name of a trademark or logo;
- class of goods or services for which a trademark is registered or will be registered
- date of registration and registration number by USPTO (if a trademark is already registered)
- date of application and application number (if a trademark is pending for application).
It is common for trademark license agreements to include additional warranties and representations related to the trademark. For instance, the owner has to guarantee that the registration of a trademark is up to date and the trademark is not abandoned. The parties may also consider inclusion of other warranties and representations as might be necessary for their particular circumstances.
Granted Rights
A solid trademark licensing agreement should outline how the licensee is allowed to use the trademark. According to the general rule, a trademark could be used in various ways, including branding, merchandising, advertising, promotion, etc. Therefore, the text of a trademark licensing agreement shall clearly define in which exact way the licensee shall use it.
The text of a licensing agreement shall also define the type of license—exclusive or non-exclusive. An exclusive license provides the licensee with the unique right to use a trademark in a certain way. It means that neither the licensor nor any other third party can use a trademark the same way as the licensee under the agreement. Contrary to that, a non-exclusive license is less strict and allows a licensor to grant the same rights to use a trademark to an unlimited number of third parties.
Geographical Scope
A good trademark license agreement example defines the geographical scope within which the licensee may use the trademark. It is up to the licensor to decide where exactly a trademark shall be used—in a specific city, town, state, country, region, or worldwide.
Payment Provisions
At the heart of every trademark license agreement sample are clear financial terms, including:
- type of licensing fees (e.g., royalties or regular payments, fixed fee, etc.);
- payment schedule;
- acceptable payment methods;
- late fees (optional, but recommended).
If the royalties under a trademark license agreement sample depend on the number of sales made, a licensor shall have the right of regular financial audit of the licensee’s financial reports. This is needed to ensure transparency and absence of any errors when it comes to calculating the portion of a licensor’s remuneration.
Duration and Termination
A trademark licensing agreement may last several months or several years. The exact duration of a license should be specified directly in the text of a contract.
As for the termination, either party should be able to end the contract at any time by serving a prior written notice. A notice period under a licensing agreement could be 14, 30, or even 60 days. The exact length of a notice period mostly depends on the duration of the original license.
How to customize a license agreement at Faster Draft?
To get a personalized trademark license agreement, follow a few easy steps below:
- Click the button “Create Document.”
- Answer simple questions in the form.
- Select a document’s format—trademark license agreement PDF or Word.
- Make a payment.
- E-sign, download, print, and use the customized legal document template.
Table of content
Frequently Asked Questions (FAQ)
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1. What is a brand licensing agreement template?
A brand licensing agreement is a legal contract by which the owner of a brand or trademark grants their right to use that brand or trademark to another party. There is no legal difference between brand licensing and trademark licensing, since both titles refer to the same document.
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2. Shall trademark licensing agreements be registered?
Yes, information about the concluded trademark licensing agreement should be submitted for further registration with the U.S. Patent and Trademark Office. The copy of a signed trademark license agreement, along with other supporting documentation, should be filed by a trademark owner.
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