Now let's give you some tips that will help you write a trademark license agreement:
When filling out your trademark license agreement template, ensure you specify both the licensor and the licensee in detail, mentioning full legal names, addresses, registration numbers, legal representatives, and other important information that will help in easily identifying parties.
Recitals of a trademark license agreement can contain the intention of the contract and further describe the parties and trademarks. However, recitals aren't a requirement and aren't legally binding, so make sure you put everything important in the contract body.
3. Grant of License
Grant of the license is a clause specific to a trademark license agreement in which the licensor specifies the trademark and the license conditions – its exclusivity, geographic limitations, the products or services it covers, as well as how long the license will last and the amount of the licensing fee or compensation.
Defining the territory where the licensee can use the trademark is an integral part of any trademark license agreement, so ensure you don't forget this clause.
The consideration section describes what each party should give to the other to fulfill their obligations from a trademark license agreement. As an example – the licensor can guarantee the trademark is registered and that they will transfer the license for selected goods and services in good faith, while the licensee agrees to pay a fee or royalty for trademark use.
The term describes the duration of the license and is a key component of any trademark license agreement.
7. Quality Control
We have mentioned that trademark licenses are often part of a larger franchising agreement, which is why they are accompanied by quality standards licensees must maintain.
Termination terms will specify how each party has the right to end the relationship and usually define a notice period and eventual compensation.