What are the special issues to be considered in cases where the trademark is sub-licensed in China?

14:17, September 01, 2009        

Q: What are the special issues to be considered in cases where the trademark is sub-licensed in China?

A: As far as a sub-license is concerned, there are five important issues to be noted as follows:

  1. To decide whether the Licensee is entitled to sub-license the trademark, it is crucial that the Licensor gives an explicit consent to the Licensee to sub-license the trademark to third parties in the principal Trademark License Agreement.

  2. No matter whether the principal license is a sole license or a common license, the sub-license given under the special authorization from the Licensor can only be a common license.

  3. The term of the sub-license must not go beyond that of the principal license.

  4. The territory of the sub-license must not go beyond that of the principal license.

  5. The mode of use of the licensed trademark under the sub-license must not go beyond that indicated in the principal license.

Source: China IP

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Clothing made in China register trademarks abroad and become international brands. And then the price soars. What do you think?
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