A Brand Name License Agreement is essential when a brand owner wishes to permit third parties to use their brand name and associated intellectual property in a controlled manner. This document, governed by United States federal and state laws, establishes the framework for brand licensing relationships, protecting the licensor's intellectual property rights while enabling the licensee to commercially exploit the brand. It's commonly used in situations ranging from merchandise licensing to franchise operations, covering crucial elements such as quality control, royalty payments, and usage restrictions. The agreement must comply with federal trademark laws, state contract laws, and relevant industry regulations, making it a vital tool for brand expansion and monetization while maintaining brand integrity and legal protection.
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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 brand name, and purpose of the license
3. Definitions: Detailed definitions of key terms including Licensed Marks, Territory, Term, Licensed Products, etc.
4. Grant of License: Scope of the license granted, including territory, duration, and nature of rights
5. License Fees and Royalties: Payment terms, royalty rates, minimum guarantees, and payment schedules
6. Quality Control: Standards for use of the brand name, approval processes, and quality maintenance requirements
7. Protection of Licensed Rights: Obligations regarding trademark protection, infringement reporting, and enforcement
8. Representations and Warranties: Statements of fact and guarantees by both parties
9. Term and Termination: Duration of agreement, renewal terms, and termination conditions
10. Post-Termination Obligations: Requirements after agreement ends, including cease of use and disposal of materials
11. Confidentiality: Protection of confidential information shared during the relationship
12. General Provisions: Standard legal clauses including notices, assignment, amendment, and governing law
1. Sublicensing Rights: Include when licensee is permitted to sublicense the brand name to third parties
2. Digital Usage Terms: Include for licenses covering digital/online use of the brand
3. Marketing and Promotion: Include when specific marketing requirements or restrictions apply
4. Exclusivity Provisions: Include for exclusive licensing arrangements
5. International Usage: Include for licenses covering multiple jurisdictions
6. Merchandising Rights: Include when license covers merchandise production
7. Social Media Usage: Include when brand usage extends to social media platforms
8. Co-Branding Provisions: Include when co-branding arrangements are permitted
1. Schedule A - Licensed Marks: Detailed list and images of all licensed trademarks, logos, and brand elements
2. Schedule B - Licensed Products/Services: Comprehensive list of products or services covered by the license
3. Schedule C - Quality Standards: Detailed quality control requirements and specifications
4. Schedule D - Royalty Rates: Detailed breakdown of royalty calculations and payment terms
5. Schedule E - Approval Procedures: Step-by-step procedures for obtaining licensor approval
6. Schedule F - Brand Guidelines: Technical specifications for brand usage including colors, fonts, and positioning
7. Appendix 1 - Territory Definition: Detailed description of geographic territories covered by the license
8. Appendix 2 - Reporting Templates: Standard forms for sales reports and royalty calculations
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