Trademark License Agreement Template: Royalties and Term

TRADEMARK LICENSE AGREEMENT FAQ

What is a Trademark License Agreement?

A Trademark License Agreement is a contract in which the trademark owner (licensor) grants permission to another party (licensee) to use the mark for specified goods, services, or territories, under certain conditions.

Why is a Trademark License Agreement important?

It ensures the brand owner maintains control over the quality and reputation of the trademark, while allowing another party to benefit from its use. Without a clear agreement, misuse or dilution of the trademark could occur, weakening its legal protection.

When should you use a Trademark License Agreement?

Use it whenever allowing another party to use your registered or pending trademark, such as in franchising, co-branding, manufacturing partnerships, or distribution arrangements.

What should a Trademark License Agreement include?

It should specify the licensed trademark(s), permitted uses, quality control standards, territory, duration, royalty or fee arrangements, and termination rights. It should also clarify ownership of the trademark and limit unauthorized use.

Does a trademark license transfer ownership?

No. The licensor retains ownership of the trademark. The licensee only receives rights to use the trademark under the terms of the agreement.

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