​How to Ensure That a Trademark License is Done Properly

Last Updated: 

February 9, 2024

When your business starts taking the path of growth and eventually the brand becomes recognisable, it is the best time to think about licensing your trademark. Trademark licensing is important for every business as it is a kind of agreement through which the licensor or registered trademark owner will be able to grant another party, the licensee the permission for making or distributing products or services under that specific trademark.

It is the licensee who will be paying a fee to the licensor for using the trademark. This is paid either in a lump sum or royalty fee that has been agreed between the parties. As your business gets recognised in the market, the value of your brand increases accordingly. It’s when hundreds of third parties will show interest in your brand or the products. Your trademark will keep your brand value high with more sales from their parts under your trademark.

Key Takeaways on Doing a Trademark License Properly:

  • Why Should You Go for Trademark Licensing?: Trademark licensing can significantly enhance brand awareness and revenue, but it requires a carefully structured agreement to protect the interests of all parties involved.
  • How Trademark Licensing Will Be Beneficial for Your Business?: Licensing your trademark can help identify areas for improvement, maximise growth value, and increase revenue while reducing risks and finding cost efficiencies.
  • How to Properly License a Trademark?: Ensure proper licensing by creating clear requirements for licensees, drafting a detailed written agreement, hiring an experienced trademark attorney, and establishing brand guidelines for trademark use.
  • Quality Control: Maintain strict quality control over licensed products or services to protect the reputation and goodwill associated with your trademark, as consumers associate the mark with the quality of goods or services they purchase.
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Why should you go for trademark licensing?

Trademark licensing has several benefits and they include enhanced branding awareness with super-boosted revenue. However, these benefits can be visible if the process of trademark license is done in the right way. It is a bit challenging when it comes to creating a trademark license that stands fair to all the involved parties yet protecting your point of business.

How trademark licensing will be beneficial for your business?

Trademark licensing will help business owners to notice the areas that require improvement along with maximising the value of growth. Intangible assets, together with boost business values by increasing business revenue, reducing risks, and finding areas of cost efficiencies. A professional and experienced attorney will prepare and then file the trademark application. He/she can ensure complete peace of mind by providing all the necessary steps for the development of a trademark portfolio.

How to properly license a trademark?

  • Create proper requirements for the licensees. Determine how they want to use their mark in the future.
  • Get the application in writing. Go for a detailed license agreement that can be signed by the parties and the licensor.
  • Hire an experienced attorney who is specialised in trademark licensing. He/she can help you with all the drafting agreements and enforce proper usage.
  • Establish the guidelines for your brand to clearly dictate where and how the trademark can be used.

Quality control

It is important to go for detailed quality control when it comes to trademark licensing. The licensor’s control is required as the mark represents the reputation and goodwill of the business owner. Remember, consumers, rely on the reputation of the trademark and regards the quality of the services or goods when they look to purchase anything.

When licensing your trademark, make sure to determine all the legal decisions involved in the process. It is the attorney who can help you in this regard. All you need is, consider working with an experienced company that is specialised in trademark licensing. They can guide you through the entire process and ensure the complete fortification of your trademark.

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