Trademark Licencing : A Comprehensive Guidance

Updated on July 08, 2024 08:09:08 AM

Trademark licensing is a business strategy, where the brand owner grants the right to use its trademark in exchange for a royalty. Licensing the trademark has gained immense popularity in recent times, as it allows for the commercialisation of the brand without the risk of infringement. It also provides the brand owner with a source of additional revenue.

Via granting the trademark licensing, the brand can also enhance its popularity in the competitive marketplace. In this article, we look into the complex world of trademark licensing, examining its processes, required documentation, and the numerous benefits it provides to organisations.

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Overview of Trademark Licencing

Let's take an overview of Trademark Licencing before further discussion:

Trademark Licencing

Trademark licensing is a strategic partnership in which a brand owner allows another party (licensee) permission to use its trademark under limitations. This legal document specifies the conditions, quality criteria, and payment arrangements. The licensee profits from the use of an established brand, while the licensor receives higher funds and expands brand reach. It's an advantageous scenario that encourages collaboration and corporate progress.

Trademark Licence Agreement:

A Trademark Licensing Agreement is a legal agreement between the owner of a licensor and a third-party licensee that grants the licensee the right to use the trademark under certain circumstances. It specifies usage terms, quality standards, financial arrangements, and other important elements, assuring a clear understanding and adherence to the conditions agreed upon.


A licensor is an entity or individual who owns the trademark and provides authorisation for its use to another party (licensee) in Trademark Licensing. The licensor retains ownership of the trademark and specifies specific conditions and restrictions for its use in a formal agreement.


The licensor is the trademark owner who provides authorization to another party, known as the licensee, for the permitted use of the trademark in a Trademark Licensing Agreement. The licensor retains control of the trademark and establishes the terms, restrictions, and limits for the licensee's use of it.

Process of Trademark Licencing

The complete procedure of Trademark Licencing is as follows:

Step 1: Determine Licencing Need:

Specify the trademark(s) for licensing and carefully justify the scope of the licence, defining the included goods or services, while calculating licensing requirements. This guarantees that the licensor and licensee are on the same page regarding the allowed usage and commercial activity related to the designated trademark.

Step 2: Conduct TM Search

Before licensing, it is critical to do a trademark search to check the availability of the desired trademark. This includes checking for competing trademarks or existing licensing and reducing legal concerns. A thorough search ensures an in-depth understanding of the trademark conditions, avoiding any conflicts and legal issues throughout the licensing procedure.

Step 3: Drafting Licencing Agreement

Drafting an agreement for licensing is a crucial step that mentions all the negotiable terms and conditions between the licensor and licensee. It outlines the scope, duration, and area of the licence, as well as severe quality control guidelines. Royalty payments are specified, and termination provisions guarantee that they are followed.

This drafting required a legal assistant who has a thorough understanding of legal norms. Litem Legalis can help you to draft a well-arranged agreement. This thorough contract clearly and legally protects the rights of both the licensor and the licensee

Step 4: Negotiate Terms

During a trademark licence negotiation, both parties discuss important terms such as royalty rates, upfront fees, exclusivity, and specific requirements. In this collaborative process, the licensor and licensee will reach a mutually beneficial agreement specifying the scope and conditions of the licence, ensuring a clear understanding and alignment of interests.

Step 5: Execute the Agreement.

As soon as both parties reach a mutual agreement, the licensing contract must be signed following legal protocol. By properly executing the document, both parties are committed to complying with the terms, and the relationship is legally recognized and enforceable.

Requirement for Trademark Licencing

There are three main requirements for Trademark Licencing that are as follow:

  1. Trademark Licence Agreement is an essential requirement that contains all the details of both parties and each term and condition. Most details are mentioned in this deed such as duration, royalty, details of the Licensor and licensee and many more.
  2. The Trademark Certificate is essential during the licensing process because it acts as proof of ownership. It certifies the licensor's legal rights to the trademark, giving the licensee confidence and confirming the licensing agreement's authenticity.
  3. During trademark licensing, a Power of Attorney (POA) is necessary to legally authorise an individual to act on behalf of the licensor or licensee. This guarantees that authorised agents may sign contracts, manage legal issues, and make licensing-related decisions.

How Can Litem Help You?

Litem Legalis' experienced legal team drafts airtight Trademark Licensing Agreements tailored to your needs. To ensure your interests are protected and successful licensing partnerships are fostered, trust us to adhere to meticulous terms and regulations. We're here to help you make your brand a success."

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Trademark licensing serves as a powerful strategy for brand expansion in today's dynamic business landscape." Our article has negotiated the complexities, from creating strong agreements to protecting brand integrity. Understanding the complexity of trademark licensing becomes critical as businesses seek development and partnership. Businesses may form successful partnerships with the correct legal advice and a thorough strategy, assuring not only the multiplication of their brand but also the preservation of its essence in every endeavour and market.

Frequently Asked Questions

What are the Trademark Registration Fees?

The required Registration Fees for Trademark Registration is ₹4500 per class for individuals and ₹9000 for companies.

How to Register a Trademark?

Trademark Registration is divided into many stages such as conducting a TM search, filing a TM application, examination by the department, opposition process, advertising in a journal and registration certificate.

Which documents are required for TM Registration?

The Required documents for Trademark Registration are the Logo, nature of goods & services, email ID, Aadhar Card, PoA, MSME certificate or start-up certificate.

What is the eligibility for TM registration?

Any individual or business organisation is eligible for Trademark registration, but their Trademark should be different from the marks that are already registered.

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