A Trademark Licence Agreement is essential when a trademark owner wishes to permit others to use their mark while maintaining control over its usage. This document is particularly relevant in commercial arrangements where brand value needs protection while enabling business expansion through licensing. Under English and Welsh law, the agreement must comply with the Trade Marks Act 1994 and should address key aspects such as quality control, territory, duration, and payment terms. It's commonly used in franchise operations, merchandising, and brand collaborations, where maintaining brand integrity is crucial while generating commercial value through controlled usage rights.
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1. Parties: Identification and details of the licensor and licensee
2. Background: Context of the agreement and ownership of the trademark(s)
3. Definitions: Key terms used throughout the agreement including Licensed Marks, Territory, and Licensed Products
4. Grant of Licence: Scope and nature of the trademark licence being granted, including any exclusivity provisions
5. Term and Termination: Duration of the licence and circumstances for termination
6. Quality Control: Standards and requirements for use of the trademark, including approval processes
7. Payment Terms: Royalties, fees, payment arrangements and reporting requirements
8. Protection of the Marks: Obligations regarding trademark protection and infringement actions
9. Representations and Warranties: Standard warranties regarding trademark ownership and right to license
10. Governing Law and Jurisdiction: Specification of English and Welsh law as governing law and jurisdiction
1. Sub-licensing Rights: Include when licensee is permitted to sub-license the trademark to third parties
2. Territory Restrictions: Geographical limitations on trademark use and any territory-specific requirements
3. Marketing Requirements: Specific marketing obligations, restrictions and approval processes
4. Competition Law Compliance: Specific provisions ensuring compliance with competition laws
5. Data Protection: Provisions dealing with personal data processing if relevant to the licensed activities
1. Schedule 1 - Licensed Trademarks: Details and representations of all licensed marks including registration numbers
2. Schedule 2 - Licensed Products/Services: Comprehensive list of products or services covered by the licence
3. Schedule 3 - Quality Standards: Detailed quality requirements, specifications and approval processes
4. Schedule 4 - Royalty Calculations: Detailed royalty calculation methods, reporting templates and examples
5. Schedule 5 - Brand Guidelines: Specific requirements for trademark usage and brand representation
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