Trademark license contract
In this contract the proprietor (Licensor) of a registered trademark grants authorisation to another company (Licensee) to manufacture and sell products under that trademark in a particular territory and a specific period of time, always for a commercial purposes and under mutually agreed terms and conditions. The License is granted for a certain range of products from among the 45 which includes the Nice classification, albeit in the majority of cases, this Contract is used for consumer products (food, fashion, beauty etc.). The company which uses this type of contract must have a trademark possessing sufficient visibility and distinction to be licensed, that has a renowned prestige and adds value to those purchasers who acquire the license. The trademark use license concession must be undertaken according to a Licenses Plan, in which an in-depth analysis is carried out as regards which products are to be licensed, the territories for which they are to be licensed, the license price, as well as the positioning and communication strategy that must be the same for all licensees. In consideration for this temporary assignment of rights, the Licensee initially receives a certain amount of money (fee) and a percentage (royalties) calculated on the amount of the sales of the products under license, made by the Licensee. Model of Trademark License Contract.