Trademark Licensing Agreement

Q: Does this agreement transfer trademark ownership?

No, this agreement does not transfer ownership. It only grants the right to use the trademark under set conditions. The licensor retains full ownership throughout the agreement period.

Q: Who is responsible for quality control under this agreement?

The licensee must comply with the licensor’s directions regarding quality, production, and processing. This ensures the trademark is used as intended and maintains its reputation and value.

Q: What are the licensee’s main obligations?

Maintain accurate records for 7 years Comply with quality standards set by the licensor Pay any agreed fees, royalties, and applicable GST Monitor and report on trademark use and possible infringements

Q: Can the agreement be used for unregistered trademarks?

No, this document is designed for use only with registered trademarks. The protections and obligations outlined rely on the trademark’s registered status in Australia.

Q: What happens if the licensee breaches the agreement?

If the licensee fails to comply with the terms, the licensor may terminate the agreement and seek remedies for any losses or damages. The agreement outlines consequences for non-compliance and steps for revocation.

Q: What protections does the agreement offer the licensor?

Control over how the trademark is used Quality standards enforcement Right to terminate for breaches Indemnities to protect against misuse or damage to the trademark

Q: Is this agreement valid across all Australian states and territories?

Yes, the agreement is suitable for use in all Australian states and territories, ensuring consistent legal protection nationwide.

A Trademark Licensing Agreement is a legal document that enables a company (a licensor) to grant the exclusive or non-exclusive use of its trademark to another business (a licensee) and also allows the licensor to set out the terms associated with the use of its trademark.

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Last updated January 22, 2025

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Suitable for Australia

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What is a trademark licensing agreement?

A trademark licensing agreement is a legal contract that allows a trademark owner to grant another party the right to use their trademark under specific terms without transferring ownership.

When should you use a trademark licensing agreement?

Use a trademark licensing agreement when you want to let another business use your registered trademark while keeping ownership and controlling how it is used.

What should be in a trademark licensing agreement?

A trademark licensing agreement should include the licence duration, territory, permitted uses, quality control requirements, fees or royalties, confidentiality, and terms for termination or expiration.

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Frequently asked questions

Does this agreement transfer trademark ownership?

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Who is responsible for quality control under this agreement?

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What are the licensee’s main obligations?

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Can the agreement be used for unregistered trademarks?

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What happens if the licensee breaches the agreement?

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What protections does the agreement offer the licensor?

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Is this agreement valid across all Australian states and territories?

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View Sample Trademark Licensing Agreement

The Legal Risk Score of a Trademark Licensing Agreement Template is Medium

Our legal team have marked this document as medium risk considering:

This document can only be implemented in a context where a trademark has been registered.
The document places the responsibility on the licensee to ensure quality control and maintain records, which could lead to potential financial and operational burdens if not managed properly.
The obligation to monitor and report on trademark infringement and other related issues requires vigilance and proactive management, which could be resource-intensive.

Users with some knowledge of trademark agreements and business operations may find this document manageable, but it is advisable to have access to legal and professional advice to navigate the complexities and fulfill the obligations effectively.