As a business owner, protecting your brand is paramount to success and growth. One of the ways that you can achieve this is by entering into a trademark license agreement. This agreement allows you to grant permission to other parties to use your trademark in exchange for royalty payments. In this article, we’ll provide an example of a typical trademark license agreement.
Introduction
This agreement is entered into between [Licensor], the owner of [trademark name], and [Licensee], [Licensee’s address], for the purpose of licensing the use of the [trademark name].
Grant of License
Licensor grants to Licensee a non-exclusive license to use the [trademark name] in connection with [describe product or service] in [geographic area]. The license granted herein shall not be sublicensed or assigned by Licensee without the prior written consent of Licensor.
Compensation
In consideration of the license granted herein, Licensee shall pay Licensor a royalty of [percentage or amount] of the net sales of products or services that bear the [trademark name]. Royalties shall be paid to Licensor on a [frequency] basis.
Trademark Use
Licensee acknowledges that the [trademark name] is the sole and exclusive property of Licensor. Licensee shall not use the [trademark name] in any manner that may harm or damage Licensor’s reputation or goodwill. Licensee shall include the following trademark notice on all products and advertising materials that bear the [trademark name]: [trademark symbol] [trademark name] is a trademark of [Licensor]. Licensee shall not alter or modify the [trademark name] or use it in combination with any other mark.
Term and Termination
This agreement shall commence on [start date] and shall continue for [duration ] unless terminated by either party upon [notice period] prior written notice to the other party. Upon termination, Licensee shall cease using the [trademark name] and shall return all materials containing the [trademark name] to Licensor.
Indemnification
Licensee agrees to indemnify, defend and hold harmless Licensor, its officers, directors, employees, agents, and affiliates from and against any and all claims, demands, damages, costs, liabilities, and expenses arising out of Licensee’s use of the [trademark name].
Governing Law
This agreement shall be governed by the laws of [state/country] and any disputes arising under this agreement shall be resolved in the courts of [state/country].
Conclusion
A trademark license agreement is a crucial legal document that protects your brand and ensures that you receive compensation for the use of your trademark. It is important to ensure that the agreement clearly outlines the terms and conditions of use, compensation, and termination to prevent any confusion or misunderstanding between the parties involved. By using the example provided in this article as a guide, you can create a strong and effective trademark license agreement for your business.