Trademark License – What is it and it features

What Is The Trademark License

A Trademark License Is An Exciting Option Compared To 2 Commercial Scenarios:

When you are absorbed in marketing a product or service whose brand goes to another.

When you have a registered trademark and want to increase the market.

Therefore, one of the frequently asked questions as industrial property consultants is how and when trademarks should or can be licensed.

Below we show an explanation that aims to answer most of the general doubts that arise. Still, it should be clear that to prepare and draft a trademark licensing agreement properly, its peculiarities should remain considered, analyzed, and dealt with by experts. Altered.

Utilizing a license the owner of the registered trademark, or failing that, whoever has the right and the power to grant it, authorizes a third party to use it in exchange for financial compensation in the form of royalties. Thien agreement materializes this license A licensing agreement can / should also remain formalized by registering it with the office where the registration of the licensed mark remained made.

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The characteristics of the trademark registration will frame a trademark license, that is to say, by the territory it envisages, it’s period of validity (10 years renewable for the same periods indefinitely), and the products or services it identifies.

It should remain noted that a trademark application and a granted trademark may remain licensed. This second option is the most recommended, as it presents a more excellent guarantee since all the administrative requirements and procedures have remained overcome.

Do You Need A License For A Brand?

Required information

A trademark license can remain granted:

Near all or part of the products or services for which you are registered (in this case, we talking about a global permit);

On all or part of the territory, it contemplates.

In addition, the trademark license can be:

Exclusive: when it remains explicitly indicated that the use of the mark only authorized to the licensee, who will also have the capacity to defend the right of the sport.

Non-exclusive or straightforward: when the use of several personalities is authorized or can be charged simultaneously, including the owner of the mark.

According to art. 48.2 of the Trademark Law, which governs the issuance of the license, unless otherwise specified in the contract:

A licensee may not assign the license to third parties or grant sub-licenses.

The licensee has the right to use the mark for the duration of the registration.

The license is not exclusive; that is to say that the licensor can grant to third parties and use the mark himself.

If the license is exclusive, unless otherwise provided, it understood that the licensor may not use the mark.

Trademark License: Franchise.

If it taken into consideration that the primary function of a register trademark  to differentiate the products and services of a company. The brand owner interested in identifying their origin, quality, and reputation from those of its competitors. They maintain a close relationship with the brand licensee. To ensure that quality standards maintained and that the consumer or user remains not misled.

To contract with this problem and found a closer relationship between the parties, there are franchise agreements. Through a franchise, the brand owner can exercise greater control over the licensee who also becomes the franchisee. Consequently, the ceding company brings its technical and management capacities and allows the means at its disposal. Registered trademarks and specialized knowledge, customer service, computer programs, drawings, decorations, etc., establish a team relationship.

Finally, clear up a common confusion regarding trademark transfer. A trademark transfer  different from a license in that it involves the transfer of the latter to a third party.

In popular terms, and so we all understand it. The transfer of a brand involves the sale and the license to lease it.

Also read: What Is Production Management And Its Factors

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