A Trade Name License Agreement is essential when a business wants to authorize another entity to use its trade name in commercial activities. This document, governed by US federal and state laws, establishes the legal framework for trade name licensing, protecting the licensor's intellectual property while enabling the licensee to benefit from the trade name's commercial value. The agreement details critical aspects such as permitted usage, territorial limitations, quality standards, fees, and compliance requirements. It's particularly important in franchising, retail, and other sectors where brand identity plays a crucial role. The document ensures compliance with US trademark laws, including the Lanham Act, and provides mechanisms for monitoring and enforcing proper trade name usage.
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1. Parties: Identifies and provides full legal details of the licensor and licensee
2. Background: Establishes the context, including the licensor's ownership of the trade name and the licensee's desire to use it
3. Definitions: Defines key terms used throughout the agreement, including the Trade Name, Territory, and Permitted Use
4. Grant of License: Specifies the scope, nature (exclusive/non-exclusive), and territory of the license granted
5. Term and Termination: Defines the duration of the agreement and circumstances for termination
6. License Fees: Details the payment terms, including any recurring fees, royalties, or one-time payments
7. Quality Control: Establishes standards for use of the trade name and licensor's right to monitor and approve usage
8. Protection of Trade Name: Outlines measures to protect the trade name and handling of potential infringement
9. Representations and Warranties: States the parties' assertions regarding their rights and abilities to enter the agreement
10. Indemnification: Sets out the parties' obligations to protect each other from third-party claims
11. Confidentiality: Protects confidential information exchanged during the agreement
12. General Provisions: Includes standard legal provisions like governing law, notices, and amendment procedures
1. Sublicensing Rights: Include when the licensee may be permitted to sublicense the trade name to third parties
2. International Use: Include when the trade name will be used in multiple jurisdictions
3. Marketing and Promotion: Include when specific marketing requirements or restrictions need to be detailed
4. Assignment Rights: Include when transfer rights need to be specifically addressed beyond standard restrictions
5. Dispute Resolution: Include when parties want specific arbitration or mediation procedures
6. Insurance Requirements: Include when specific insurance coverage is required for the licensee
7. Change of Control: Include when the agreement needs to address consequences of ownership changes
8. Compliance with Laws: Include when specific regulatory compliance requirements need to be detailed
1. Schedule A - Licensed Trade Name: Detailed description and representations of the licensed trade name
2. Schedule B - Territory: Specific definition and/or map of the licensed territory
3. Schedule C - Usage Guidelines: Style guide and specifications for trade name usage
4. Schedule D - Quality Control Standards: Detailed quality control requirements and inspection procedures
5. Schedule E - Fee Schedule: Detailed breakdown of all fees, royalties, and payment terms
6. Appendix 1 - Approved Forms of Trade Name: Visual representations of approved trade name formats
7. Appendix 2 - Approval Procedures: Detailed procedures for obtaining licensor approval for trade name usage
8. Appendix 3 - Reporting Requirements: Templates and procedures for required periodic reports
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