A License To Use Trademark agreement is essential when a trademark owner (licensor) wishes to permit another party (licensee) to use their trademark in a controlled manner. This document is particularly crucial in Hong Kong's dynamic commercial environment, where brand licensing is common across various industries. The agreement typically includes detailed provisions on trademark usage, quality control, royalty payments, and territorial restrictions, all compliant with Hong Kong's legal framework, particularly the Trade Marks Ordinance (Cap. 559). It's commonly used in franchise arrangements, manufacturing agreements, merchandising deals, and brand expansions. The document protects the licensor's intellectual property rights while providing the licensee with clear parameters for legitimate trademark use.
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1. Parties: Identification of the licensor and licensee with full legal names and registered addresses
2. Background: Context of the agreement, including trademark ownership details and parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Scope of the license, whether exclusive or non-exclusive, and territory covered
5. Term and Renewal: Duration of the license and conditions for renewal
6. License Fees and Payment Terms: Financial terms including royalties, payment schedule, and calculation methods
7. Quality Control: Standards for trademark usage and licensor's right to inspect and approve use
8. Use of the Trademark: Specific requirements and restrictions on how the trademark may be used
9. Protection and Infringement: Obligations regarding trademark protection and handling infringement by third parties
10. Representations and Warranties: Parties' assertions about trademark ownership and authority to enter agreement
11. Termination: Circumstances allowing termination and consequences thereof
12. Post-Termination Obligations: Obligations of parties after agreement ends
13. Confidentiality: Protection of confidential information exchanged during the agreement
14. General Provisions: Standard clauses including notices, assignment, governing law, etc.
1. Sub-licensing Rights: Include when licensee is permitted to grant sub-licenses to third parties
2. Minimum Performance Requirements: Include when setting specific sales or performance targets for licensee
3. Marketing and Promotion: Include when specific marketing obligations or restrictions apply
4. First Right of Refusal: Include when giving licensee priority rights for additional territories or products
5. Insurance: Include when specific insurance requirements are needed
6. Change of Control: Include when agreement needs to address ownership changes in licensee company
7. Export Controls: Include for international licensing arrangements
1. Schedule 1 - Licensed Trademarks: Detailed list of trademarks covered, including registration numbers and classes
2. Schedule 2 - Licensed Territory: Detailed description of geographical areas where license is valid
3. Schedule 3 - Licensed Products/Services: Comprehensive list of products/services covered by the license
4. Schedule 4 - Quality Control Standards: Detailed quality standards and specifications for trademark usage
5. Schedule 5 - Royalty Calculations: Detailed methodology for calculating royalties and fees
6. Schedule 6 - Brand Guidelines: Technical specifications for trademark usage and brand standards
7. Schedule 7 - Approved Sub-contractors: List of approved manufacturers or service providers (if applicable)
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