About trademark licences
When you obtain a registered trademark, it cannot be used by others without your consent for similar goods/services.
You can give your consent to use of a trademark by using a trademark licence agreement
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Use trademark licences - with registered trademarks
The scope to use trademark licences is wider when you own registered trademarks. It is possible to licence the use of registered trademarks. This applies granting a trademark licence for the territory, for the goods or services, and for the trademarks, as well as other aspects.
When a trademark is registered, the trademark owner can enter into a trademark licence with third parties. The trademark licence can be agreed in several ways, depending on the registered trademark. For example, the following trademark aspects can be included in a trademark licence agreement
- the territory for the trademark licence agreement;
- the goods or services involved in the trademark licence areement;
- the length of time or term for the trademark licence agreement;
- the amount of royalties for use of the registered trademark;
- whether the trademark licence agreement is exclusive or non-exclusive;
- trademark licence arrangements concerning signage;
- quality control licence matters.
Your trademark licence can set lmits or no limits
In principle, there is no limit to the number of trademark licence agreements that an owner of a registered trademark can enter into. This can add value to owning a registered trademark for a good business or brand. The territories can be adjusted in terms of size or location. The types of activities may be resticted, subject to the Competition Acts.
... Registered trademarks can expand your territory
A registered trademark licence agreement can help to expand the business beyond the existing location, or indeed to extra territories or countries. If extra countries are involved, then the trademark must be registered in those countries to preserve the intellectual property rights. It is possible to cover the whole territory of the EU in one trademark registration. For more information visit our Community trademark page.
Trademark licence agreement and taxation structures
The EU passed a directive in 2003 dealing with taxation of interest and royalties under the EC Interest and Royalties Directive 2003/EC/49. Ireland has implemented this directive. The directive allows for trademark licence royalties to be earned by associated companies in members states of the EU that are part of a group, to be exempt from double taxation in certain circumstances.This may be attractive for trademark licences in groups of companies that either charge licence royalties or obtain trademark royalties from licence agreements dealing with use of intellectual property rights.
Trademark licences and trademark royalties earned may be capable of corporate structuring to avail of Ireland's attractive coprporation tax rates.
Visit our page trademark royalties.
Trademark territories can be widened
Obviously, the trademark licence territory applicable for registered trademarks can be considerably larger than the size of a business premises - being the whole country where the trademark is registered rather than confined to say one industrial building or property.
Trademark licences are used in franchising
One of the main controls in franchising a business is control using registered trademarks. The owner of a registered trademark, with franchisees, wants to ensure appropriate standards of quality are met. Withdrawal of permission to use the registered trademark can be very powerful in controlling other users of the trademark.
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Trademark licences give benefits for registered trademark owners
A trademark licence can help to earn additional income, royalties, and capitalise on the use of a registered trademark for its owner.
Trademark licences for registered trademarks can be arranged. A trademark licence agreement can be registered as part of the aspects of trademark registration, if it relates to a registered trademark. This can affect the title or rights attaching to the registered trademark. Some of the trademark licences deal with the following issues: -
- the registration details of the trademark;
- the grant of licence arrangements;
- powers of licensees regarding use of the registered trademark;
- scope of trademark licence agreement and sub-licences;
- trademark licence agreement expiry or termination;
- trademark royalties;
- responsibilities of the parties e.g. trademark advertising;
- registration of the licence agreement; and,
- international trademark registration.
On occasions an owner of a registered trademark permits another party to ue the trademark in certain circumstances. This is usually governed by a trademark licence agreement, royalty arrangements, and arrangements to protect the trademark's intellectual property and title. This can strengthen market positioning versus competitors.
Trademark licences can be be purpose-built to meet primary trademark registration controls, and to commercialise on potential for trademark royalties.
Battle For Trademarks can offer, especially for trademark licences in Ireland, the following:
- certain registered trademark searching,
- trademark advice,
- preparation of trademark applications,
- handling of trademark examination issues,
- preparation and negotiation of trademark agreements,
- dealing with trademark opposition, and,
- assistance with registering trademarks legally.
Organizations look to expand and improve their market position. They also want to enhance asset values. Brands can be turned into assets when they have been registered as trademarks. Assets that can be more valuable than property and often more versatile.
Trademark licences can develop:
- more extensive brand exploitation,
- granting your permission to certain parties to use your trademark,
- retaining control over the use of your trademark,
You may need advice from a trademark consultant in licencing your trademark.
More Battle trademark services
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Battle advises organizations, solicitors, and accountants' clients on a range of matters concerning trademarks. Click here to see more Battle trademark services for our range of other trademark services.