Trademark authorization, also known as trademark license, means that a trademark registrant authorizes others to use his registered trademark by signing a trademark authorization contract. Licensee engages in business activities (usually producing and selling a certain product or providing a certain service) according to the contract, and pays the corresponding fee-royalties to Licensor; At the same time, Licensor provides guidance and assistance in personnel training, organizational design and operation management.

The Trademark Law stipulates that the licensor shall supervise the quality of the goods in which the licensee uses its registered trademark. The licensee shall guarantee the quality of the goods using the registered trademark. Where a registered trademark of another person is used with permission, the name of the licensee and the place of origin of the goods must be marked on the goods using the registered trademark.

Usually, the right to use a trademark is authorized to others through a licensing contract signed by both parties.

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For the licensee, the right to use the trademark can be obtained through professional trademark authorization. With the popularity, good image and business philosophy of the trademark, its products can enter the market with lower cost, faster speed and lower risk, and be accepted by the market, thus making enterprises and products succeed quickly.

There are five advantages to obtaining trademark authorization:

1. The products of enterprises can be instantly recognized by consumers through trademarks. Of course, the quality of the product itself is very important, but if there is a good trademark as a guide, consumers can remember the product quickly and accept it more easily.

2. Improve the profit level of enterprises. The same product, combined with the popularity of trademarks, can bring higher prices and higher sales than before, and bring more profits to enterprises.

3. Directly benefit from the huge promotion activities of the trademark licensor. In order to maintain the market position and popularity of this trademark, the trademark licensor must constantly cultivate the trademark role, remind consumers of the existence of these brands and trademarks, and attract more attention from consumers. The promotion of these trademarks will directly bring better sales performance to the licensee.

4. Get the immediate interest and acceptance of retailers (sales channels). Simple and easy-to-remember brand trademarks will easily enter the distribution channels. With the power of authorized brands and trademarks, licensees can quickly enter intensive channels and reach consumers more widely.

5. You can get the most effective guidance and help from the authorized person in personnel training, organizational design and management, learn and even improve its good business model, and drive the development of the enterprise's own products.

References:

Trademark Authorization-Baidu Encyclopedia