For the licensor, the use license is a realization of his trademark right, which completes the partial transfer of his trademark right; For the licensee, the use license is a special form of obtaining trademark rights, and he can obtain some trademark rights by it.
Advantages and disadvantages of trademark licensing;
The license for the use of registered trademarks meets the needs of the production and sales of brand-name goods, which is conducive to promoting the development of commodity economy, improving economic benefits and solving the contradiction between supply and demand of goods. In our real life, consumers' selectivity to commodities has increased, and the famous brand effect in commodities is very obvious. On the one hand, this has largely caused consumers to concentrate on buying brand-name goods. Because the production capacity of enterprises producing brand-name goods is limited, they cannot produce a larger number of brand-name goods to meet the needs of the masses, and the market is seriously in short supply; On the other hand, no one cares about non-brand products, and the supply exceeds demand. Due to the weak technical force, low management level, unstable product quality and low brand reputation, it is difficult for enterprises producing these non-brand products to open up sales for the time being. According to the provisions of the License for the Use of Registered Trademarks, the licensee who uses brand-name trademarks must ensure the quality of goods. Enterprises that license other enterprises to use brand-name trademarks often combine technology transfer with production and operation experience. For the licensee, the licensed use of brand-name trademarks can not only obtain the right to use brand-name trademarks at a low price, expand the sales of products and achieve good economic benefits, but also improve the production technical conditions and management level of enterprises, which is a good thing for killing two birds with one stone.
Of course, trademark licensing also has disadvantages. The disadvantage is that the trademark right is temporary, not permanent. Both parties can stop the license and just pay the penalty. Speaking of this, the cases of Wang Laoji and Jia Duobao are very obvious. I'm afraid if the brand grows bigger, there will be other ideas. Of course, it is mainly aimed at licensees, and the risk of trademark holders is much smaller.
Types of trademark license:
In general, trademark license is divided into one hundred license and exclusive license. Exclusive license means to license the ownership of a trademark to others, while general license means that the registered trademark owner can allow different people to use the registered trademark at the same time, and the registered trademark owner can continue to use the registered trademark, and can also restrict the trademark used by the licensee in terms of product variety and geographical scope.
Although trademark licensing is good, it still has risks. The choice of trademark license may be more because of famous brands. In fact, if suggested, we still choose trademark transfer, there is no risk.