A Trademark Use Agreement is essential when a business wants to legally permit another entity to use its trademark(s) in Canada. This document, governed by Canadian federal and provincial laws, particularly the Trademarks Act (R.S.C., 1985, c. T-13), establishes the framework for controlled trademark licensing while maintaining the owner's rights and the mark's integrity. It's commonly used in franchising, merchandising, brand collaborations, and international business expansions. The agreement covers crucial elements such as scope of use, quality control measures, territory restrictions, royalty structures, and compliance requirements. It helps protect the trademark owner's intellectual property rights while providing the licensee with clear parameters for authorized use. The document must comply with Canadian trademark law requirements for valid licensing arrangements, including provisions for quality control and monitoring.
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1. Parties: Identification of the trademark owner (licensor) and the party being granted use rights (licensee), including full legal names and addresses
2. Background: Context of the agreement, description of the trademark(s), and the parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement, including 'Licensed Marks', 'Territory', 'Licensed Products', and 'Quality Standards'
4. Grant of License: Specific rights being granted, including type of license (exclusive/non-exclusive), territory, and permitted uses
5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances allowing for termination
6. Quality Control: Standards for using the trademark, approval processes, and quality maintenance requirements
7. Royalties and Payments: Financial terms, payment schedules, reporting requirements, and audit rights
8. Protection of the Marks: Obligations regarding trademark protection, infringement reporting, and enforcement
9. Representations and Warranties: Parties' assertions about trademark ownership, right to license, and other material facts
10. Indemnification: Mutual or unilateral indemnification obligations for trademark-related claims
11. Confidentiality: Protection of confidential information exchanged during the agreement
12. General Provisions: Standard clauses including governing law, notices, assignment, and amendment procedures
1. Sublicensing Rights: Include when licensee is permitted to sublicense the trademark to third parties
2. Marketing and Promotion: Include when specific marketing requirements or restrictions need to be detailed
3. E-commerce Usage: Include when trademark use in online platforms needs specific regulation
4. International Usage: Include when trademark use spans multiple jurisdictions
5. Co-branding Provisions: Include when the trademark will be used alongside other brands
6. Social Media Usage: Include when social media use of the trademark needs specific regulation
7. Post-Termination Obligations: Include when specific wind-down provisions are needed
8. Dispute Resolution: Include when specific arbitration or mediation procedures are desired
1. Schedule A - Licensed Marks: Detailed list and images of all licensed trademarks, including registration numbers
2. Schedule B - Licensed Products/Services: Comprehensive list of products or services for which trademark use is permitted
3. Schedule C - Quality Standards: Detailed quality control specifications and requirements
4. Schedule D - Brand Guidelines: Visual guidelines for trademark usage, including size, color, and positioning requirements
5. Schedule E - Territory Definition: Detailed description of geographic areas where use is permitted
6. Schedule F - Royalty Calculations: Detailed methodology for calculating royalties and payment terms
7. Appendix 1 - Approval Procedures: Step-by-step procedures for obtaining approval for trademark use
8. Appendix 2 - Reporting Ƶ: Standard forms for required periodic reports and notifications
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