Trademark license refers to the act that a trademark registrant allows others to use his registered trademark through legal procedures. Usually in the form of signing a license contract. Types include general license, exclusive license and exclusive license.
Trademark right is the property right that an enterprise enjoys over a registered trademark, but it must be used to make the registered trademark an industrial property right and create realistic or attainable benefits for the enterprise. The use of trademarks first means that trademarks are directly attached to commodities, commodity packages or containers and sold in the market. In addition, the use of trademarks in commodity trading documents or business activities such as advertising and exhibitions for commercial purposes also constitutes use. The use of a trademark can be the owner's own use or the permission of a third party other than the owner.
Trademark license type
1. General license: the form of "small profits but quick turnover"
That is, the licensor allows the licensee to use the registered trademark under the contract within the specified geographical scope. At the same time, Licensor reserves the right to use the registered trademark in this area and grants the right to use the registered trademark to a third party.
2. Exclusive license: it can resist the exclusive use of the trademark owner.
That is, within the specified geographical scope, the licensee enjoys the exclusive right to use the registered trademark authorized. Licensor shall not license the same trademark to a third party, nor shall licensor use the trademark in the territory. The royalty of exclusive license is much higher than other licenses, so only when the licensee considers the market effect of product competition and thinks it is really necessary to use the trademark exclusively in a certain area will he ask for such license.
3. Exclusive license: the parallel use of 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 can also enjoy the right to exclude the use of the third party. That is, the licensor may not license the same to any third party, but the licensor reserves the right to use the same registered trademark. The exclusive license only excludes third parties from using the trademark in this area.
What does the trademark license include?
1. Name and address of licensor and licensee.
2. Licensed trademarks and their registration numbers.
3, the scope of goods licensed to use the trademark.
4. License period (should not exceed the registration period of the licensed trademark).
5. Ways to provide the logo of the licensed trademark.
6. Provisions on Licensor's supervision over the quality of goods in which Licensee uses its registered trademark.
7. Terms indicating the name of the licensee and the origin of the goods on the goods using the trademark of Licensor.
Payment method of trademark license fee
There are several ways to pay the trademark license fee: one-time payment or installment payment. The standard of payment can be the total amount negotiated at one time, or the commission can be charged according to the output or profit of the product. It is very unfavorable for licensor to pay the license fee in full at one time, unless the licensee is strong. In addition, the one-time risk is too great, once the trademark can not bring profits, it will be wiped out. Relatively speaking, the way of royalty is more desirable, on the one hand, it will not occupy too much money, on the other hand, it is also convenient to improvise according to the implementation of trademarks.