Trade Mark Licence (basic)

This Trade Mark Licence Agreement should be used if you are licensing trade marks to a third party who will apply the trade marks to goods and services in the territory for a specific term.  

Limitations

The Trade Mark Licence Agreement should not be used and will require amendments if it is to be used where:

• the licensing of the trade marks is part of a company or corporate name is not permitted;
• minimum sales volumes are required by the licensee;
• the licensor wants the trade marks to be used in accordance with a style guide;
• the licensor requires the licensee to adhere to standards of manufacturing and quality control;
• the licensor or licensee is a trustee company;
• the licensee wishes to export the products overseas or into other territories.

Why do you need one?

You will need a Trade Mark Licence Agreement if you are a trade mark owner and want to:

• grant the rights use your trade marks to a third party in a territory; 
• secure payment for royalties;
• protect your goodwill in the use of the trade marks;
• ensure use of your trade marks remains uniform, thus building value in your brand;
• ensure that the Products bearing the trade marks adhere are manufactured to applicable standards and are subject to quality control, again ensuring the integrity of your brand is controlled and maintained.

Risks of not having one

If you license your trade marks without an agreement some of the risks may include:

• the trade marks may be used to sell products which are not covered by the trade mark registration, exposing you to trade mark infringement claims;
• disputes in relation to the payment of royalties;
• the goodwill and value of your trade mark may be damaged if products bearing the trade marks do not adhere to applicable standards of manufacturing and quality control;
• valuable confidential information and trade secrets could be lost to competitors;
• the goodwill and value of your brand will be diminished if it is not used uniformly;
• the trade marks may become vulnerable to non-use/cancellation actions if used bya  party who is not the registered owner or no licence agreement is in place.