A Trademark License Agreement is essential when a business wants to permit others to use its protected marks while maintaining control over their usage. This agreement, governed by U.S. trademark law, is commonly used in franchising, merchandising, and brand expansion scenarios. The document outlines critical elements such as quality standards, territorial limits, and compensation terms, ensuring the trademark owner maintains control while allowing others to benefit from the mark's commercial value. The agreement must comply with the Lanham Act and relevant state trademark laws, making it a crucial tool for protecting intellectual property rights while facilitating business growth through controlled licensing arrangements.
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1. Parties: Identifies and defines the licensor and licensee
2. Background/Recitals: States the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Grant of License: Specifies the scope, territory, and nature of the license granted
5. Term and Termination: Duration of agreement and conditions for termination
6. Quality Control: Standards and requirements for trademark usage
7. Royalties and Payments: Payment terms, reporting requirements, and audit rights
8. Protection of Rights: Obligations regarding trademark protection and enforcement
9. General Provisions: Standard contractual clauses including governing law
1. Sublicensing Rights: Terms and conditions under which the licensee may grant sublicenses to third parties
2. Marketing and Promotion: Requirements and restrictions for marketing and promoting licensed products or services
3. Territory Restrictions: Specific geographical limitations and requirements for different territories
4. Insurance Requirements: Specific insurance obligations and coverage requirements for the licensee
5. Change of Control: Provisions regarding ownership changes and their impact on the license agreement
1. Schedule A - Licensed Marks: Detailed list and images of all licensed trademarks covered by the agreement
2. Schedule B - Products/Services: Comprehensive list of approved products or services under the license
3. Schedule C - Quality Standards: Detailed quality control requirements and specifications
4. Schedule D - Royalty Calculation: Detailed methods and formulas for calculating royalties
5. Schedule E - Brand Guidelines: Specific requirements and standards for trademark usage and brand representation
6. Schedule F - Territory Map: Detailed geographical scope of license with specific territory definitions
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