As an owner of a registered trademark, can I ask someone to pay royalties if they choose to continue using that trademark?

Photo of Tomas Orsula

Written by Tomas Orsula

Senior Trademark Attorney

Yes. If a third party is using your registered trademark without authorization, one resolution is to approach them and propose a license agreement under which they pay royalties for continued use. Royalties are typically calculated as a percentage of the revenue generated under the licensed mark.

This turns an infringement situation into a commercial arrangement. It requires the other party to agree to the terms; they may instead choose to challenge your rights, rebrand, or cease use. A trademark attorney should handle the negotiation and draft the license agreement to ensure the terms are legally sound and enforceable.

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