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A Trade Mark Licence Agreement is used by a trade mark owner to permit another party to use the trade mark.

In a Trade Mark Licence Agreement, the licensee is permitted to use the trade mark on its products or services in accordance with the trade mark owner’s requirements, and benefits from the trade mark’s goodwill as a result. It can also provide lucrative income for trade mark owners. Such income usually comes in the form of periodic payments known as royalties.

A Trade Mark Licence Agreement will set out how the trade mark can be used, the duration and territory of the licence, and the responsibilities of both parties.

  • Details of the trade mark to be licensed;
  • Scope of use;
  • Royalties and payment terms; and
  • Details of existing licences (if any).

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