Trademark Licensing | EXCELON IP – Brand Licensing Companies
Trademark is not just a unique mark which protects the product you trade in a particular industry but it is an intellectual asset through which people recognize your product, it is a name or symbol, logo, or a combination of any of these which becomes the identity of any product. One must commercialize and reap the maximum benefit of such creation. EXCELON IP’s Trademark Licensing Services helped numerous clients to licence their Trademarks.
How to License your Trademark?
Trademark licensing is when a trademark owner authorizes another person or organisation to use the registered mark for their business activities for a limited period of time according to the agreed terms and conditions of use by the real owner of the trademark. The trademark owner gets consideration viz. royalties for such use by somebody else for their business activities. Limited rights of use are provided to third party persons or entities whereas other significant and exclusive rights of ownership are retained by the owner of the trademark.
Licensing of a trademark is enshrined in section 49 of the trademarks act, 1999 of India. Usually, licensing of trademarks is based on certain factors like, the quality of the product or service to be commercialized, maintenance of the reputation of the trademark which is to be associated with the trading activities, exclusivity of such trademark and ways in which trademark may be used by the licensee. Trademark licensing is enabled for a specified period of time to the licensee viz. maybe a year or number of years or maybe decades. It should also be noted that no fixed tenure is prescribed by the trademark registry of India in this context. Also, keeping a record of licensing with the trademark registry of India is also not mandatory in India but getting it on record helps both the parties viz. the real owner of the trademark and the licensee to institute proceedings for performance for the said trademark.
For getting the real owner and the temporary user on record of trademark registry of India, form TM – U is required to be filed within 6 months of such agreement at the appropriate office of a trademark with the prescribed fees. The registered owner of the trademark and the to-be-user jointly file the form TM – U. If everything is complied with, according to the prescribed laws then the trademark registry of India will register the user as the “registered user” of such mark and the same is published in the journal as well as the proprietor of the trademark will also be intimidated about the same in due time. If trademark registry is not satisfied with the form TM – U, then a hearing shall be appointed for the same where the respective persons of interest have to bring their concern in front of the board and convince the registrar and make corrections in the form if required and then the user will be accorded the status of the registered user if the registrar of trademark registry on India is pleased.
Benefits of Trademark Licensing
One of the significant benefits of licensing the trademark is the reach of the trademark escalates in a very short span of time. Licensing in many territories and across countries helps in enhancing the popularity of the mark among the people hence facilitating it towards becoming a global mark or a widely known mark and also increases commercialization of trademarks through licensing in the like manner.
Trademark Due Diligence: Checks & Balances
While licensing, due diligence has to be conducted, even after licensing due checks has to be performed and the exclusive rights have to be controlled time-to-time towards its use by the licensee, the quality check of such product or service traded under the licensed name as well as the maintenance of the goodwill and reputation of the owner of the trademark must be looked upon time and again.
Draft Trademark License Agreement with EXCELON IP – Trademark Licensing Company
It is very fruitful to license your small intellectual properties, it will not only help your brand name gain popularity but also enhance more commercialization of trademarks in the same manner which will thereby lead to an increase in trading activities. At Excelon IP, we have a designated team for handling IP licensing and keeping the quality checks accordingly.