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What is a trademark license agreement?

Written by Jan Buza

Co-founder of Trama

A trademark license agreement is a contract under which a trademark owner (licensor) grants another party (licensee) the right to use the trademark in connection with specific goods or services, in a defined territory, for a set duration, in exchange for fees or royalties.

The agreement does not transfer ownership of the trademark. The licensor retains the registration and all ownership rights; the licensee simply has permission to use the mark within the terms of the agreement. License agreements should include quality control provisions requiring the licensor to supervise the quality of the licensee's goods or services; this is important for maintaining the trademark's validity, particularly in the US.

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