Take advantage of your intellectual property rights by using this trade mark licence agreement to allow another individual, sole trader or a company to use your trade mark on their business products.
Overview of the Trade mark licence agreement
When should I use a Trade mark licence agreement?
Use this trade mark licence agreement when you want to grant someone an exclusive, non-exclusive or sole licence to use your trade mark for specified products. Use this agreement to set out clear terms and obligations for both parties.
What’s included in a Trade mark licence agreement?
This trade mark licence covers:
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an exclusive, non-exclusive or sole licence
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permitted use
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infringement
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quality control
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warranties
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limitations of liability
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insurance
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termination
What’s a Trade mark licence agreement?
A licence is an agreement that sets out clear terms and obligations between you as the trade mark right owner and another party who you grant the right to use your trade mark on their products.
The person granting the licence is usually called the licensor, and the person receiving the licence is usually called the licensee.
Do I need a Trade mark licence agreement?
You will usually need a trade mark licence agreement if you want to allow another company or individual to use your trade mark on their products or services. This licence makes clear what the licensee's rights and obligations are and what fee is payable.
How is the licensee charged for the use of the trade mark?
This agreement allows you to either charge the licensee:
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a single payment of a licence fee
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a royalty percentage based on the licensee's net sales of licensed products
What's the difference between a single licence fee and a royalty?
A royalty is a recurring payment made to an owner or licensor of the trade mark for ongoing use of their IP rights. The licensee pays a share of revenue to the legal owner (ie the licensor) for the use of their trade mark to market or sell their products or services.
A licence fee is usually a one-off payment upfront to the licensor so that the licensee has the permission to use the name and/or logo.
Can I use this for an unregistered trade mark?
No, this document is created specifically for registered trade marks only.
What if I want to sell my trade mark?
If you want to sell your trade mark you will need to create an IP assignment, which will outright transfer your rights, title and interests.
For more information read Trade marks.
Further advice
Ask a lawyer for:
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advice on drafting bespoke terms in your licence
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advice on any special registration requirements
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advice when there are more than one licensor or more than one licensee
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advice if you want to licence other IP rights such as copyrights or patents