What is Trademark?
The definition of a Trademark is provided in Sec- 2 (1) (zb) of the Trademarks Act, 1999. According to it, a Trademark is-
A mark (Sec- 2(m))
Trade License Online is capable of being represented graphically, and
Capable of differentiating the goods and services of one person from those of others, and
Includes shape of goods, their appearance, their packaging and combination of colors.
What is Trademark License?
The term “Licensing of TM” has not been defined in the Trademarks Act, 1999.
A License in general is the permission given to someone to do an act.
Trademark License simply means the permission granted by the owner of the trademark to a third person. Such a license is granted in consideration of a Royalty.
Who can grant a TM License?
The holder/proprietor of the registered Trademark can grant the trademark license. It would be right to mention here that under the Indian Law both registered and unregistered can be transferred. The transfer of a Trade Mark can either be by means of a license or an assignment.
A license to a registered Trade Mark in India can be of two kinds- A simple license agreement which is with respect to permissive use and A Registered User wherein the license agreement is registered with the Registrar of Trade Marks. In this license certain rights accrue to the licensee as per statute.
To whom is the TM License Granted?
It can be granted to any person or a third party whom the trademark holder wishes to exploit or use the trademark.
Why is a TM License Granted?
A trademark license is granted to legally permit a third party to make use of the Registered Trademark. It is a common practice by foreign companies, the tech companies, in particular to provide TM License in other countries so that their trademark can be exploited in those countries.
For e.g. – an owner of a brand can grant a license to another person to use his trademark in the course of trade for both goods and services.
The granting of the TM License is not a sale. Licensing only transfers the right to use the trademark while the ownership of the trademark rests with the proprietor himself. The rights granted are limited rights w.r.t. time and can range from right to uses the trademark, sell the products etc. The TM License can be an exclusive or non – exclusive one.
What are the Requisites of a TM License Agreement?
The Trade license registration online shall implement quality checks and controls on the goods and services for which it is being granted. This would prevent the reputation of the trademark from being destroyed or maligned. This necessary clause shall be always added in the agreement.
The territory for which the license is being granted.
The term of the license.
Consideration for which it is being granted.
Termination clause
Indemnification clause (in case any loss occurs).