A company may choose to license its brand or trademarks if it believes there is a strong consumer acceptance of brand extensions or products. For example, when Apple launched the iPod, it was necessary to have immediate accessories such as headphones, charging and sync stations, and carry bags. Apple decided not to manufacture these products and decided to have the products manufactured by a licensee. Apple could offer “Earbud headsets,” iPod docking stations and “iPod socks.” Each is made by a separate company, but together offers an elegant solution to the consumer. All these accessories are sold by the licensees. Trademark licenses are agreements that are covered by legal protection and allow a third party to lend a name, image or trademark to another entity or person. This agreement is a contract that allows the use of a product or idea protected by U.S. trademark laws. A licensing agreement is a contract between two parties (conedenters and licensees) in which the donor grants the purchaser the right to use the mark, brand, patented technology or the ability to manufacture and sell goods in the licensee`s possession. In other words, a licensing agreement gives the licensee the opportunity to use the licensee`s intellectual property. Licensing agreements are often used by the licensee to market their intellectual property. Each licensing agreement is unique and these agreements vary by type (copyright, trademark, patent, etc.). In general, you will find these sections in most licensing agreements: one of the most important elements of a licensing agreement is the financial agreement.

Payments made by the licensee to the licensee are usually made in the form of guaranteed minimum payments and royalties for sales. Royalties are generally between 6 and 10 per cent, depending on the ownership and the degree of experience and sophistication of the licensee. Not all licensees need guarantees, although some experts recommend that licensees receive as much compensation in advance as possible. In some cases, licensees use warranties as the basis for renewing a licence agreement. If the taker completes the minimum sales figures, the contract is renewed; Otherwise, the licensee has the option of terminating this relationship. The benefits of licensing can be viewed from two angles: licensees and licensees. The definitions, requirements and terms of a licensing agreement are important negotiating points. Using a robust model for brand licensing agreements as we propose can help you define the framework for discussion with licensees. Subject – a complete description of the product or service offered for licensing. This is also the area in which patent, copyright or trademark numbers, if any, are included. This type of agreement contains all the details of how the two individuals or companies will work together with a given company.

Most trademark licensing agreements include a licensee or the person or company that purchases the licensing rights to a product or brand, as well as a licensee or the owner of the product or trademark. The person who purchases the rights is responsible for refunding a portion or percentage of any sale of the product in the contract to the person to whom the licensee belongs.