How to License a Trademark
A trademark is a name, figure or design created by a company to distinguish its product or service. A registered trademark can then be licensed to another firm in return for a royalty. Due care must be taken while licensing your trademark to avoid misuse. Here are a few steps to help you license a trademark.
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Instructions
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Get your trademark registered with the Patent and Trademark office to claim legal ownership over your trademark. Without the registration, the trademark is just another design or symbol.
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Know your licensee well. Get information regarding his standing in the business, his product range, the scope for his products and his scale of production and distribution.
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Know your rights fully before licensing your trademark. Trademarks may be territorial or limited to a certain product, so complete knowledge of the extent of trademark rights is very important before licensing.
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Decide on the terms and conditions on royalty. You can opt for a flat fee or a percentage of the sales depending upon the mutual agreement.
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Exercise a strict quality control on the products manufactured by the licensee, be it adhering to the quality standards or display of the trademark. You can pull up the licensee for failing to meet with the required quality standards.
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Insist on a termination provision. If the licensee doesn't play fair or doesn't perform well, you can terminate the contract.
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Tips & Warnings
Before licensing, make sure your licensee will do justice to your trademark. Ally with the wrong firm and your standing could take a hit.
Weigh your options before you decide upon the license. It includes the nature of license and the duration for which your trademark is licensed.
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Comments
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One of the most profitable and practical ways to exploit Your trademark without having to incur in manufacturing and distribution costs is by licensing it to commercial partners. As the author says, trademark rights are territorial. So in order to give birth to a valid license agreement in Mexico You must first submit your trademark for registration with the Mexican Trademarks Authority. Once your trademark is registered or during the registration process, you will then have to present your license agreement for registration. This is the only way to establish a strong legal position against unlicensed distributors of your trademarks and counterfeiters. We can help You all the way from the beginning and register your trademarks and license agreements in Mexico.
