by Apra Law

In the current development era, intellectual property plays an increasingly important and valuable role in the asset structure of enterprises. The business of intellectual property is becoming popular, bringing many material benefits and contributing to brand promotion for intellectual property owners. The most popular activity today is the activity of “licensing” a trademark, which is expressed in the form of a trademark license contract.

“Trademark license contract” is the common name of an Agreement for transfer of trademark use rights prescribed in the Intellectual Property Law. The license of a trademark is understood as the transfer of the right to use the trademark by the owner of a protected mark in accordance with the law to another organization or individual. Organizations and individuals that receive the right to use the mark may only use the mark within the agreed scope.

According to the provisions of the Intellectual Property Law, the trademark license contract has 03 (Three) forms as follows:

– An exclusive contract is a contract under which, within the scope and term of assignment, the licensee has the exclusive right to use the mark, the licensor may not enter into a trademark license contract with any other party. any third party and may only use the mark with the permission of the licensor.

– A non-exclusive contract is a contract under which, within the scope and term of licensing, the licensor still has the right to use the mark and the right to enter into a non-exclusive trademark license contract with the other party. other.

– A sub-brand license contract is a contract under which the licensor is the person who is assigned the right to use that mark under another contract.

A trademark license contract must contain the following basic contents:

– Full name and address of the licensor and the licensee;

– Grounds for transferring the right to use;

– Type of contract;

– The scope of the transfer, including limitation of the right to use, limit the territory;

– Contract term;

– The price for the transfer of the right to use;

– Rights and obligations of the licensor and the licensee.

Some Notes on Trademark License Contracts

A trademark license agreement must not contain provisions that unreasonably restrict the licensor’s rights, in particular provisions that do not derive from the licensor’s rights as follows:

– Directly or indirectly restricting the licensee from exporting goods or services produced or supplied under the trademark license agreement to territories other than where the licensor holds the ownership rights. the respective industrial property or has the exclusive right to import the good;

– Forcing the licensee to purchase all or a certain percentage of raw materials, components or equipment from the licensor or a third party designated by the licensor without the purpose of ensuring the quality of the goods. goods or services produced or provided by the licensee;

– Prohibit the licensor from claiming the validity of the industrial property right or the licensor’s right of assignment.

In case the contract contains the above contents, these terms are automatically invalidated.

Above is a consulting article on “Trademark License Agreement” of Apra Law Company Limited. If you still have questions about the above issues and need to be answered, please contact the hotline for advice and support.


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