A Sample License Agreement for Trademark: Understanding the Basics
When it comes to protecting your brand, a trademark is an essential tool. A trademark is a word, phrase, symbol, or design that distinguishes your products or services from those of others. Once you have a trademark, you can license it to others to use it in their products or services. This article will provide you with a sample license agreement for trademark and discuss the importance of having one.
What is a trademark license agreement?
A trademark license agreement is a legal document that allows another party to use your trademark in their products or services. The agreement sets out the terms and conditions for using the trademark and outlines the responsibilities of both parties. It is a crucial document that protects your trademark and ensures that your brand is being used in the manner you intended.
Why is having a trademark license agreement important?
Having a trademark license agreement is important for several reasons. Firstly, it protects your brand and ensures that your trademark is being used appropriately. It also helps to prevent trademark infringement and dilution which can lead to loss of revenue and damage to your brand`s reputation. Secondly, the agreement outlines the terms and conditions for using the trademark, including how it can and cannot be used, the duration of the license, and the compensation for using the trademark. Having a clear agreement in place helps to avoid misunderstandings and disputes between parties.
Sample License Agreement for Trademark
[Insert Name of Licensor], a [Insert State] corporation, with its principal place of business at [Insert Address], (“Licensor”), and [Insert Name of Licensee], a [Insert State] corporation, with its principal place of business at [Insert Address], (“Licensee”), hereby agree as follows:
1. License Grant
Licensor grants to Licensee the non-exclusive right and license to use the trademark [Insert Trademark Name], owned by Licensor, in connection with the products and services of Licensee. The license is limited to the United States and Canada.
2. Duration of License
The license shall commence on [Insert Date] and continue for a period of [Insert Duration]. The license shall automatically renew for subsequent [Insert Duration] periods unless terminated by either party upon 30-day written notice.
3. Trademark Usage
Licensee shall use the trademark [Insert Trademark Name] only in connection with the products and services specified herein. Licensee may not use the trademark in any manner that is disparaging or likely to cause confusion or dilution of the trademark.
4. Compensation
Licensee shall pay Licensor a royalty of [Insert Royalty Percentage] percent of the net sales of Licensee`s products and services that use the trademark. Licensor shall invoice Licensee quarterly for the royalty payments due.
5. Representations and Warranties
Licensor represents and warrants that it is the owner of the trademark and has the legal right to grant the license to Licensee. Licensee represents and warrants that it will use the trademark only in accordance with this agreement.
6. Termination
Either party may terminate this agreement upon 30 days written notice if a material breach of this agreement has occurred and remains uncured after such notice.
7. Governing Law
This agreement shall be governed by and construed in accordance with the laws of the State of [Insert State].
IN WITNESS WHEREOF, the parties have executed this agreement as of the day and year first above written.
Licensor: [Insert Signature]
[Insert Name and Title]
Licensee: [Insert Signature]
[Insert Name and Title]
Conclusion
A trademark license agreement is an essential document for protecting your brand and ensuring that your trademark is being used appropriately. The sample license agreement for trademark provided in this article serves as a template to help you create your own agreement. Remember to consult with a legal professional before finalizing any agreement to ensure that it meets your specific needs and is legally enforceable.
