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What are the types of trademark licenses?

When an enterprise licenses others to use a registered trademark, it usually does so by entering into a licensing contract, that is, by issuing a license. In a licensing relationship, the trademark owner or the person authorized to use the trademark is the licensor, and the other party is the licensee.

In practice, some trademark license contracts are independent license agreements, and quite a few are trademark license terms included in other contracts, such as trademark use regulations attached to technology transfer, franchising and other contracts. When signing a trademark use agreement, enterprises may consider choosing one of the following three types:

1. Ordinary license: "small profits but quick turnover" form

That is, the licensor allows The licensee shall use the registered trademark under the contract within the specified geographical scope. At the same time, the licensor reserves the right to use the registered trademark within the region and to grant third parties the right to use the registered trademark.

This kind of licensing method is mostly suitable for situations where the licensee’s production capacity is limited or the product market demand is large. The licensor can choose several more licensees, and the selling price of each license It is relatively low, so it is a "small profits but quick turnover" approach. For the licensee, the right to use the trademark obtained is non-exclusive. Therefore, if the registered trademark involved in the contract is used by a third party without authorization, the licensee is generally not allowed to sue the infringer in its own name, but can only report the relevant circumstances. Notify the licensor, who will take necessary measures against the infringement.

2. Exclusive license: can resist the exclusive use of the trademark owner

That is, within the specified geographical scope, the licensee has the exclusive right to use the registered trademark authorized for use. The licensor may not license the same trademark to a third party, nor may the licensor itself use the trademark in the region. The royalties for exclusive licenses are much higher than other licenses, so only when the licensee considers the market effect of product competition and believes that it is necessary to exclusively use the trademark in a certain area will request such a license.

The legal status of the licensee is equivalent to that of a "quasi-trademark owner". When trademark infringement is discovered within the specified territory, the licensee can directly sue the infringer as an "interested party".

3. Exclusive license: concurrent use by the trademark owner and the licensee

In this case, in addition to the licensor giving the licensee the right to use its registered trademark, The licensee also has the right to exclude third parties from use. That is to say, the licensor may not grant the same license to any third party, but the licensor retains its own use of the trademark.