Trademark licensing is the process by which a registered trademark owner, called a licensor or proprietor, allows another party, called a licensee, to make and distribute specific products or services under the licensor's trademark agreement. Trademark licensing is a type of merchandise agreement.
Trademark licensing is regulated by the Trademark Law and the Measures for Putting on Record of Trademark License Contracts. A trademark registrant may authorize other parties to use its registered trademark by signing a trademark license agreement, and the goods that bear the registered trademark must indicate the name of the licensee and the origin of the goods.
Types of Trademark Licenses
According to the China Trademark Law, the license of a registered trademark covers the following three types:
1) License for sole use
It refers to the trademark right holder licenses the registered trademark to the only licensee for use in a way agreed by both licensor and licensee within the terms of the license contract. Under this condition, the trademark registrant must not use the registered trademark within the stipulated term as well as license any other third party to use.
2) Exclusive License
It refers to the trademark right holder license the trademark to the only licensee for use. Under this condition, the trademark right holder can use the trademark by itself but can’t license any other third party to use the registered trademark.
3) General License
Under this condition, the trademark right holder not only can use the registered trademark by itself but also can license any other third party to use.
Reasons for Trademark Licensing
1. Reach new markets.
You can expand your business through your partner's marketing and distribution channels.
2. Increase brand recognition.
Licensing improves visibility among both brands by giving them a fresh look, putting them on new products and in new channels. As a result, licensing agreements can raise awareness among consumers.
3. Distribute workload.
When you sign a trademark licensing agreement, you gain a professional partner who can take some of the pressure off you. For example, when a licensor signs a trademark licensing agreement, the licensee becomes responsible for quality of goods and services it creates using the trademark.
4. Improve your business.
Your licensing agreement forges a partnership which can benefit both parties in the long term. For example, licensees can leverage the emotions generated by the trademark, such as pride in a sports team's logo or the trust embodied by a well-known brand.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to 2355735242@qq.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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