A Trade Mark Licence Agreement is essential when a brand owner wishes to permit others to use their trade marks while maintaining control over their intellectual property. This document, governed by English and Welsh law, establishes the framework for legal brand usage, including quality control measures, territorial restrictions, and compensation structures. It's particularly crucial for businesses expanding through licensing or franchising, ensuring brand consistency while generating revenue through royalties. The agreement must comply with UK trade mark legislation and competition law requirements.
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1. Parties: Identification of licensor and licensee with full legal details
2. Background: Context of agreement, ownership of marks, and purpose of licence
3. Definitions: Key terms used throughout the agreement
4. Grant of Licence: Scope and nature of licence (exclusive/non-exclusive/sole)
5. Territory: Geographical scope of the licence
6. Term and Termination: Duration and termination provisions
7. Quality Control: Standards and monitoring of licensed products/services
8. Fees and Royalties: Payment terms and calculation methods
1. Sub-licensing Rights: Include when licensee may grant sub-licences
2. Marketing Requirements: Include for detailed marketing obligations
3. Minimum Performance Requirements: Include when setting specific performance targets
4. Development Rights: Include when licensee may develop new marks or variations
1. Licensed Marks: Details and representations of licensed trade marks
2. Products/Services: Specified products/services covered by licence
3. Quality Standards: Detailed quality requirements and specifications
4. Royalty Calculations: Detailed methodology for calculating royalties
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