The Trademark License Agreement is a crucial legal instrument used when a trademark owner wishes to permit another party to use their registered trademark(s) in India. This document is essential for businesses looking to expand their brand presence through licensed manufacturing, distribution, or service provision. The agreement must comply with the Indian Trade Marks Act, 1999, and related regulations, which require specific provisions for quality control and trademark usage. It typically includes detailed terms about royalty payments, territory restrictions, quality standards, and trademark protection measures. This type of agreement is commonly used in franchise arrangements, manufacturing partnerships, merchandising deals, and international brand expansions where the trademark owner wants to maintain control over their intellectual property while allowing others to benefit from its commercial value.
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1. Parties: Identification of the licensor and licensee with full legal names and addresses
2. Background: Context of the agreement, including details of trademark ownership and registration
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Scope and nature of the license (exclusive/non-exclusive), permitted uses, and territorial limits
5. Term and Renewal: Duration of the license and conditions for renewal
6. License Fees and Royalties: Payment terms, calculation of royalties, and payment schedules
7. Quality Control: Standards, inspection rights, and approval procedures for licensed products/services
8. Use of the Trademark: Specific guidelines for trademark usage and brand guidelines compliance
9. Representations and Warranties: Parties' assertions regarding trademark ownership, authority to license, and non-infringement
10. Protection of the Trademark: Obligations regarding trademark protection and handling infringement
11. Termination: Grounds for termination, termination procedure, and post-termination obligations
12. Confidentiality: Protection of confidential information exchanged during the license relationship
13. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes
14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Sub-licensing Rights: Include when licensee is permitted to grant sub-licenses to third parties
2. Marketing and Promotion: Include when specific marketing obligations or restrictions need to be detailed
3. Export Restrictions: Include for licenses with international implications or territorial restrictions
4. Minimum Performance Requirements: Include when setting specific sales targets or performance metrics
5. Assignment Rights: Include when transfer of license rights needs specific regulation
6. Insurance: Include when specific insurance requirements are needed for product liability
7. Dispute Resolution: Include when specific arbitration or mediation procedures are preferred
8. Force Majeure: Include when specific force majeure provisions are needed beyond standard terms
1. Schedule A - Licensed Trademarks: Details of all licensed trademarks including registration numbers and classes
2. Schedule B - Licensed Products/Services: Comprehensive list of products/services covered by the license
3. Schedule C - Territory: Detailed description of geographical areas where license is valid
4. Schedule D - Quality Standards: Specific quality control requirements and specifications
5. Schedule E - Royalty Calculations: Detailed methodology for calculating royalties
6. Schedule F - Brand Guidelines: Specific requirements for trademark usage and brand compliance
7. Appendix 1 - Approval Procedures: Step-by-step procedures for obtaining approval for trademark usage
8. Appendix 2 - Reporting Templates: Standard forms for sales reports and royalty calculations
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