The geographical scope of a trademark license agreement is another important element of a trademark license agreement Since a licensor may license the trademark to multiple licensees, it is important that the license agreement clearly delineates the geographical areas in which the licensee may use the trademark. For example, a licensor may grant trademark rights to different licensees based on the continent, state, or city where they are located. This is particularly common in the case of franchise agreements, as there may be multiple licensees overlapping in the same area. Therefore, the trademark license agreement must determine whether or not the license is exclusive to the licensee and whether the licensee can sublicense any of the rights granted by the licensor. Finally, trademark licensing agreements have the same general provisions as those contained in commercial agreements, including, but not limited to: description of the parties; the intention of the parties that merged them into a legally binding treaty; if the contract creates other business relationships; the legislation in force; and, where applicable, exemption; limitation of liability; Warranties, etc. Parties and Intellectual Property – Identify the parties to the agreement and the intellectual property (trademarks) that is being granted (these issues may be described in the grant clause). The duration and right to terminate a trademark license agreement are also important because they give the licensor the opportunity to license the trademark for a short period of time in order to assess whether the business relationship is profitable enough to extend a new term. Similarly, the right to terminate the contract is important for the licensor, as it allows the licensor to immediately terminate the contract if the licensee abuses the trademark or violates other breaches of the contract. In this way, the trade mark proprietor can halt the erosion of good business or goodwill related to the mark if a licensee does not meet the quality standards that consumers expect with regard to the original supplier of the goods or services related to the mark.
There are several elements of a trademark license agreement. The most important part of the agreement is to properly demonstrate that the licensor has quality control over the goods or services sold in connection with the use of the trademark. Therefore, the quality control provision is one of the most important elements that are an integral part of trademark licensing agreements….