How to Ensure a Trademark License is Done Properly in Boston or The Greater New England Area
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When you registered your trademark with the USPTO, you might not have considered one-day allowing other people to use it. As your company expands and your brand is growing more familiar, it may be time to consider licensing your trademark. Trademark licensing is an arrangement in which a registered trademark operator, the licensor, grants another party, the licensee, consent to create and distribute goods or services under the trademark. The licensee pays the licensor a fee to use the trademark, either paid in royalties, a lump sum, or a different payment type agreed upon by both parties.
Accreditation a signature can have many benefits, such as increased brand awareness and additional revenue. However, those benefits can only be seen when the process to permit the signature has been done correctly. Developing a trademark licensing agreement that’s fair to all parties involved, yet protects your mark, can be a difficult procedure. Consider the following advice about how to properly license a signature.
How Can You Properly Permit a Trademark ?
Create prerequisites for prospective licensees. Know how they want to use the mark later on. Get it in writing. Produce a detailed licensing agreement that is accepted by both licensor and licensee. Work with an experienced trademark attorney, that has knowledge in both drafting agreements and enforcing proper usage. Establish brand guidelines which dictate how and in which the trademark can be used.
Create Licensee Requirements
Your signature is a valuable asset for your business. Just as you wouldn’t let just anybody drive a company vehicle or run your production equipment, you should not let just anybody use your signature. First, examine the potential licensee’s business plan. Is the business financially stable ? Is it well managed ? These are important factors to consider, as you wouldn’t want to grant trademark rights into a failing business, or one which may misuse the mark in the future. Then determine how the potential licensee plans to use your trademark. Since the trademark owner, you’re still accountable for the quality management of the products and services offered under the mark. Additionally, your brand’s reputation is tied to using your trademark, regardless of who’s using it.
Therefore, it’s critical to know how your trademark will be used and at which it will be exhibited. Many universities, who frequently let their trademarked logos, have prerequisites prohibiting licensees from showing the mark on particular items like alcohol and tobacco products. Establish the requirements which most reflect your brand before you enter into a licensing agreement.
Get it in Writing
A trademark licensing agreement does not need to be written down to be legally enforceable, but a simple word-of-mouth licensing agreement is much more challenging to enforce. Because of this, it’s highly recommended that a written agreement is created and signed by both the licensor and the licensee. A written agreement will offer both parties with a transparent understanding of the licensee’s rights and will be easier to enforce should a trademark dispute arise. Be sure to be thorough in the arrangement, including all essential information. Each licensing arrangement is different and dependent on the wants and wishes of the parties involved. However, most licensing arrangements must include the following:
1) The legal names of both licensor and licensee
2) The type of license is provided (exclusive, sole, or non-exclusive)
3) Any trademarks being included in the arrangement
4) The geographical region where the licensee may offer goods or services with the trademark
5) The products or services the licensee may offer with the trademark
6) Quality control provisions which summarize how the trademark could be used.
7) Payment information (Will licensor receive royalties, a lump sum repayment, etc.? ) )
8) Powerful dates for the use of the trademark by the licensee
Use OUR Trademark Attorneys
If you have recently registered your signature, you comprehend all of the numerous legal choices involved with the procedure. When choosing to license your signature, you are going to discover there are even more legal details to be dealt with. During the time you are likely an authority in the business, legal records are not easy to draft, and the slightest detail can make a massive impact in the future. From how long the licensing arrangement ought to be active to the way the licensor will be compensated for the trademark’s usage, creating a licensing arrangement can be difficult and time-consuming and creating terms that both parties may agree to could be even more challenging.
Together with your brand’s reputation on the line, this is not a time to take the do-it-yourself approach to trademark licensing. While online licensing agreement templates exist, they don’t adequately deal with the needs of your unique business and trademark. An experienced trademark attorney will work with you to develop a licensing agreement that both licensor and a licensee can agree upon. This legal document will be clearly understood by both parties and simple to apply should disputes arise.
Establish Brand Guidelines
Your signature is a representation of both your brand and your business, so the way the licensee can utilize it’s of crucial significance. Whether you are already in the process of producing a licensing agreement or you believe licensing might be a future potential, it is never too early to set up new guidelines. The consistent use of your mark helps to build your brand’s identity, and, if performed correctly, can serve as effective advertising as well.
It’s wise to consider creating brand guidelines as soon as your mark is registered. They should detail how and where your trademark can be used by employees and licensees. You may also wish to add guidelines for different aspects of your brand, such as the approved color palette, font, and logo options, in addition to the style of writing and advertising pieces. Make sure that your licensees understand these guidelines before a licensing agreement is signed.
Whether you are trying to cultivate your new or you simply want additional revenue streams, you may wish to think about licensing your trademark. If done properly, trademark licensing could be an advantage to your business. First, create licensee requirements, and have the time to research each possible licensee’s history. Work with an experienced trademark attorney to have a deal in writing. The licensing arrangement, together with new guidelines, will clearly outline the accepted use of your signature, which is important to protecting and developing your business in the long run. If you are thinking about licensing your signature, get in touch with a trademark lawyer now.