Overview
Trademark licensing is a legal arrangement where the owner of a registered trademark allows another party to use the trademark in their business operations without transferring ownership. This agreement enables the trademark owner to maintain ownership rights while granting the licensee the right to use the trademark under certain terms and conditions. The trademark owner can also include specific restrictions and guidelines in the licensing agreement to regulate the usage of the mark, such as confining it to particular goods and services.
Benefits
- Monetary Benefit– Both the parties are monetarily benefitted as the TM is widely exploited for profit and royalty is paid to the owner. The Licensor, who couldn’t exploit his trademark, say, due to lack of resources or visibility, can now make use of the licensee’s resources by granting him the license and make more profits. The licensee also gets his share in the profits.
- Expansion of business of the TM owner– The business of the trade-mark owner expands and its outreach spreads to different territories. The business no longer confines itself to a particular area, rather, the licensee/s can use their distributor skills for business expansion.
- Expansion of trademark’s brand recognition– The TM as a brand becomes a known one in territories it was prior unknown. The licensee can use his resources to advertise extensively.
- Increase in trademark’s Popularity– As the TM reaches a larger no. of people/consumers, it becomes popular and well known. This helps in more profit through increased sales as well as helps in further licensing of the Trademark.
- Distribution/Reduction of Workload– The Licensee in a way becomes a partner of the Licensor. The Licensor’s workload is reduced and he need not worry about the quality of the goods and services as the licensee is equally responsible for maintaining the quality of the goods he creates using the trademark.
Trade License 100 sft : 2000/-