The Trade Name License Agreement is a crucial legal document used when a business owner wishes to permit another entity to use their trade name in Malaysia. This agreement is essential for businesses expanding through licensing arrangements while maintaining control over their brand identity. It ensures compliance with Malaysian trademark laws, particularly the Trade Marks Act 2019 and related regulations. The document typically includes detailed provisions on usage rights, quality standards, territory restrictions, and financial terms. It's particularly important in franchising, retail, and other sectors where brand recognition plays a significant role in business success. The agreement helps protect the licensor's intellectual property rights while providing the licensee with clear parameters for legitimate trade name usage.
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1. Parties: Identification of the Licensor and Licensee with full legal names and addresses
2. Background: Context of the agreement, ownership of the trade name, and purpose of the license
3. Definitions: Key terms used throughout the agreement including 'Trade Name', 'Territory', 'Effective Date', etc.
4. Grant of License: Scope and nature of the license granted (exclusive/non-exclusive, territory, duration)
5. License Fee and Payment Terms: Financial terms including initial fees, royalties, payment schedule, and calculation methods
6. Quality Control: Standards for trade name usage, approval processes, and quality maintenance requirements
7. Protection of Trade Name: Obligations regarding maintaining and protecting the trade name's value and reputation
8. Term and Termination: Duration of agreement, renewal terms, and grounds for termination
9. Warranties and Representations: Statements of fact and promises by both parties regarding ownership, authority, and compliance
10. Confidentiality: Protection of confidential information exchanged during the agreement
11. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes
12. General Provisions: Standard clauses including notices, assignment, entire agreement, and amendments
1. Sublicensing Rights: Include when the licensee is permitted to sublicense the trade name to third parties
2. International Usage: Include when the trade name will be used across multiple jurisdictions
3. Marketing and Promotion: Include when specific marketing requirements or restrictions need to be outlined
4. Training and Support: Include when the licensor will provide ongoing support or training
5. Insurance Requirements: Include when specific insurance coverage is required for trade name usage
6. Change of Control: Include when restrictions on change in ownership/control are necessary
7. Force Majeure: Include when specific force majeure provisions are needed beyond standard clauses
1. Schedule 1 - Trade Name Specifications: Detailed description and representation of the trade name, including any stylistic requirements
2. Schedule 2 - Territory: Detailed description of the geographic areas where the license is valid
3. Schedule 3 - Fee Structure: Detailed breakdown of all fees, royalties, and payment calculations
4. Schedule 4 - Quality Control Standards: Specific quality control requirements and procedures
5. Schedule 5 - Approved Usage Guidelines: Guidelines and examples of acceptable trade name usage
6. Appendix A - Approval Process: Detailed procedures for obtaining approval for trade name usage
7. Appendix B - Reporting Requirements: Templates and procedures for required periodic reports
Relevant legal definitions
Clauses
Relevant Industries
Retail
Franchising
Manufacturing
Food and Beverage
Hospitality
Professional Services
Consumer Goods
E-commerce
Technology
Fashion and Apparel
Relevant Teams
Legal
Intellectual Property
Brand Management
Commercial
Business Development
Compliance
Risk Management
Corporate Affairs
Marketing
Finance
Relevant Roles
Legal Counsel
Intellectual Property Manager
Brand Manager
Commercial Director
Business Development Manager
Licensing Manager
Compliance Officer
Contract Administrator
Chief Legal Officer
Chief Commercial Officer
Franchise Manager
Corporate Secretary
Risk Manager
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