What is a trademark license [Must-Know Tips]

Last updated : Aug 11, 2022
Written by : Maryrose Merton
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What is a trademark license

What does it mean to license a copyright?

A copyright license gives a person or entity (“licensee") the authorization to use a work from the copyright owner, usually in exchange for payment. Copyright licenses may be exclusive or nonexclusive, and the rights that come with them vary according to the specifics of each license.

What is the purpose of a licensing agreement?

A licensing agreement allows one party (the licensee) to use and/or earn revenue from the property of the owner (the licensor). Licensing agreements generate revenues, called royalties, earned by a company for allowing its copyrighted or patented material to be used by another company.

Can a patent be licensed?

When a patent is licensed, an agreement is made between the patent owner (or the licensor) and the person or company that wants to use and benefit from the patent (the licensee). It permits the licensee to make or sell the product, design, or technology in the patent.

How can Licensing be defined?

Licensing is defined as the granting of permission by the licenser to the licensee to use intellectual property rights, such as trademarks, patents, brand names, or technology, under defined conditions.

What is difference between copyright and licensing?

What is the difference between licensing and assigning my copyright? When you licence your copyrighted work, you allow someone else to use it under certain conditions. When you assign your copyrighted work, you are effectively transferring ownership.

What's the difference between licensing and copyright?

Copyright is the legal term used to declare and prove who owns the intellectual property (the code, text, etc.). Licensing is the legal term used to describe the terms under which people are allowed to use the copyrighted material.

What is the disadvantage of licensing?

Disadvantages to the licensor include: The licensor having loss of control of their intellectual property. The licensor having to depend on the skills, abilities, and resources of the licensee to generate revenues. The licensor being exposed to intellectual property theft by the licensee.

What is the main risk of being a licensee?

What is the main risk of being a licensee? Signing the licensing agreement.

How much can a patent sell for?

If the corporation makes an offer, it will typically be anywhere from $50 thousand to $8 million, and can be higher. On the other hand, an inventor trying to simply market an issued patent to corporations, is likely to get anywhere from $5,000 to $35,000.

How much money can you make licensing a product?

Royalty rates vary per industry, but a good rule of thumb is between 2-3% on the low end, and 7-10% on the high end. I have licensed consumer products for as low as 3% and as high as 7%, with 5% being the most common and a generally fair number.

How do I license my product to a manufacturer?

  1. Invent an original product.
  2. Research your market.
  3. Do a patent search.
  4. Consider filing a provisional patent application.
  5. File a patent application.
  6. Search for licensees.
  7. Sign a licensing agreement.
  8. Collect royalties.

Why is trademark licensing important?

Licensing of Trade mark is important, as the market is always in need of reputed/recognized trademark, the usages of such trademark must be fulfilled by obtaining rights to use the trademark by way of licensing, or otherwise persons may be forced to 'pass-off' their goods/services under similar marks or even pirate a ...

What is an example of licensing?

Examples of license agreements, include: Example: Walt Disney granting McDonalds a license for McDonalds to co-brand McDonalds Happy Meals with a Disney trademarked character. The license of a technology where the licensee is granted the right to use the licensor's software, or other intellectual property asset.

What are the different types of licenses?

  • Learner's License. As mentioned earlier, this license is issued to an individual who wants to apply for a permanent driving license.
  • Permanent Driving License.
  • Commercial Driving License.
  • International Driving Permit.

Who needs a copyright licence?

You need a licence from the Copyright Licencing Agency ( CLA ) if you represent a business, a public sector organisation, or an educational establishment and you want to make copies of content protected by copyright. Making copies includes photocopying, faxing, scanning and emailing.

What are the types of copyright licenses?

There are six different Creative Commons licenses: CC BY, CC BY-SA, CC BY-NC, CC BY-ND, CC BY-NC-SA, CC BY-NC-ND. The letter pairs indicate conditions for use.

Do copyright licenses have to be in writing?

You can give a copyright license to someone either verbally or in writing, although the latter is always preferable so as to better protect your interests.

What's the difference between trademark and license?

A licensed mark is a trademark that a franchisee, or other licensee, has obtained the right to display for a certain period of time. The licensee doesn't own the trademark, but the trademark owner has granted him the right to display the trademark for a limited time, and subject to certain conditions.

What does a licensed product mean?

A product (or merchandise) license allows licensees to leverage popular IP to create branded products, usually for a specific period of time. Once the rights have been secured, the licensee manufactures product using the licensed IP, and in return pays the licensor a royalty for its use.

How do you get a copyrighted material license?

  1. Determine if permission is needed.
  2. Identify the owner.
  3. Identify the rights needed.
  4. Contact the owner and negotiate whether payment is required.
  5. Get your permission agreement in writing.

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What is a trademark license

Comment by Gil Bassham

hello my name is Monica Talley I'm a director in the trademark two set starring Kessler and we'll be speaking with you today about growing the market value of your brands and generating additional revenue through trademark licensing trademark licensing is the practice by which a trademark owner permits a third party to use its trademarks and the third party's use of the mark in ur is to the benefit of the trademark owner trademark licensing is a driving force behind the value and profit of many brands today it is estimated that global retail sales of licensed products account for more than two hundred billion dollars in sales annually trademark licensing is attractive to brand owners because it allows owners to extend brand awareness to new product or service categories that may not be feasible for a company to enter on its own licensing also quickly enables brands to penetrate new geographic markets in the past many top trademark license ORS were in the entertainment fashion or luxury brand space but many successful licensing programs today are based on corporate sports and collegiate brands one example of a terrific corporate licensing program is caterpillars foray into apparel and consumer products building on the success and reputation of its iconic brand for heavy machinery caterpillar has launched a profitable worldwide program involving the sale of licensed footwear clothing hats watches toys and other consumer products while the rewards to a successful licensing campaign can be great such arrangements must be entered into with careful consideration first licensing opportunities must be evaluated in the context of overall marketing strategy brands need to make sure that the licensed products make sense in terms of the brand's reputation and position in the marketplace second potential licensees need to be evaluated in terms of product quality and the overall health and desirability of the entity as a possible business partner finally legal documents that structure the relationship need to be carefully drafted to ensure that the mark continues to represent the quality that consumers have come to associate with the brand mismanage licensing programs may result in loss of control over the brand and damage to the company's reputation in particular license agreements a lack adequate quality control provisions maybe construed by a court to be a naked license in which to license or is found to have abandoned the rights in its mark on the flipside where a license or maintains an extreme degree of control or involvement in the design marketing and distribution of a product licensing could potentially expose a license or to product liability actions for defective or harmful products or to patent infringement liability and antitrust violations well there are many upside upsides to trademark licensing arrangements businesses need to enter into such agreements carefully with a little effort on the front end trademark licensing can become a valuable tool to enhance a company's bottom line please contact Stern Kessler if you have any questions about trademark licensing thank you

Thanks for your comment Gil Bassham, have a nice day.
- Maryrose Merton, Staff Member

Comment by MiscenichD

trademark licensing agreement what are they does your business need one and what provisions does the licensing agreement contain hey everyone my name is marcela dominguez and if you are new here i am on my exercise bike because my new year's resolution was to exercise more in 2021 so join me in today's video which is all about trademark licensing agreements and i hope you don't mind that i'll be killing two birds with one stone on my exercise bike now what is a trademark licensing agreement with a trademark licensing agreement you are allowing a licensee to use the value and the goodwill associated with a trademark so you're allowing them to use it typically on products and or services so you as the licensor are giving the licensee permission to use the trademark in a specific fashion now you as the licensor are able to approve that specific way in which they will use it so you as the licensors still have a lot of control over the permissions that you are giving to a licensee so if there are any doubts in your mind about what kind of provisions can be in that licensing agreement then rest assured that you can have it be very broad or you can have it be very specific now of course the more specific sometimes the better especially if certain things are going to bother you or if you're concerned about a licensee tarnishing your brand by using it in ways that you would not normally approve so with a trademark licensing agreement you are able to detail all sorts of things like how long is the licensing agreement a licensing agreement can be as short as maybe three to five pages or a licensing agreement can be as long as 50 to 100 pages now why the difference in the length of the licensing agreement well you can imagine that very very large brands let's just say fashion brands for example gucci versace tommy hilfiger nike puma whenever they license their brand whenever they license their trademark you can imagine that they're going to be very picky about the type of permissions that they give to the licensee in other words they're going to be very specific because they want to cover their butts in the events that the licensee uses it in such a way that ends up tarnishing the brand harming the brand or causing damage to the brand so by being very specific in the contract you're outlining things like what happens in the event of a damage or what happens in the event of a breach what happens in the event that the licensee breaks the contract and causes damage to my brand so what are the three different types of trademark licensing agreements the three types of licensing agreements are sole exclusive and non-exclusive so in a seoul licensing agreement the licensor and the licensee are able to use the mark so this is different from an exclusive license because in an exclusive license only the licensee is able to use the mark so in other words with an exclusive license only the licensee is able to use the trademark on products or services and it can still be approved by the licensor but only the licensee will be using the trademark in commerce in conjunction with products or services so that means that not even the licensor is going to use it so that means that if i own a brand let's say marcella tm and somebody wants to license marcela tm to put on some kind of educational product or educational service if i gave somebody an exclusive license that means that i would not even be able to use the marcella tm brand on my own products or services for whatever period of time is designated in the contract that means that the licensee the person that i'm giving permission to use it would be the only person who's allowed to use that mark in conjunction with products or services now to contrast that with a non-exclusive license if we have a non-exclusive license keeping with our marcella tm example me as the licensor can still allow other people to use the mark in other words i am giving permission to multiple users for the marcella tm trademark so that is very different from an exclusive license agreement and also from a sole licensing agreement so again with a non-exclusive licensing agreement it means that i can enter into a relationship with multiple parties and allow multiple parties to use my marcella tm trademark or my marcella tm brand and i have an agreement with each of those people so tell me in the comments down below if you are a registered trademark owner which licensing agreement would you prefer to have for your brand would you prefer to have a sole licensing agreement exclusive licensing agreement or non-exclusive licensing agreement so how do you make the determination as to which is better for you well i think that it will require a sit-down talk with an attorney who can help you achieve your goals so you're going to have to tell the attorney what your goals are are your goals centered around growing and having as much profit as possible and payments coming in in the form of royalties is one deal so lucrative that you really don't want to you know waste time looking for other partners and you're really assured that maybe soul licensing agreement would be to your benefit or do you want to kind of cast a wide net and have a relationship with lots of different people so that you can maximize the marketing opportunities of having that many relationships in front of you so do you have to have a registered trademark in order to enter into a trademark licensing agreement and the answer is you do not have to have a registered trademark to enter into a trademark licensing agreement however it is more common for you to enter into a trademark licensing agreement when you are the owner of a registered trademark what are some examples of trademark licensing agreements that you might have seen already well calvin klein is one of them so whenever you see the name calvin klein on a pair of underwear more than likely calvin klein was not the actual manufacturer of those goods so calvin klein entered into a licensing agreement with the manufacturer of apparel items like jeans socks and underwear so the manufacturer of those jeans socks and underwear is actually the licensee and so they had to get permission from the calvin klein brand in order to be able to use the name calvin klein on the underwear the socks and the jeans so it's not actually calvin klein that has manufactured these products rather it is the licensee that has manufactured these products and gotten permission from the brand owner to be able to use the calvin klein brand another very common type of licensing agreement is with universities so you see lots of people wearing their favorite memorabilia so sometimes you can catch people wearing their favorite sports logos on t-shirts caps jackets sweaters hoodies so if you wanted to use for example the duke or the university of texas at austin brands and put them on sweatshirts or t-shirts or hats or anything really you wanted to put it on mugs cups plates silverware then you would have to enter into a licensing agreement with the university of texas at austin or duke and get permission so that you can put their logo or their brand on the it

Thanks MiscenichD your participation is very much appreciated
- Maryrose Merton

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