What clauses are usually required for a Trademark License Agreement in China?

14:15, September 01, 2009        

Q: What clauses are usually required for a Trademark License Agreement in China? What issues should one pay particular attention to?

A: A Trademark License Agreement usually contains the following clauses:

  1. The names and addresses of the Licensor and the Licensee;

  2. The scope of the License, including:

  a. the type of the License (exclusive, sole, or common license),

  b. the licensed trademark, goods, or services,

  c. the licensed territory and term,

  d. the mode of use of the licensed mark, etc.

  3. The measures (e.g., technology, equipments, services, etc.) for ensuring the quality of goods on which the licensed trademark is used;

  4. Whether the Licensee is authorized to sub-license the trademark to third parties;

  5. The conditions of termination or revocation of the Agreement;

  6. The royalty fee and the mode of payment;

  7. The liability for breach of the Agreement;

  8. The applicable laws and the mode of resolving disputes.

  Some issues should be particularly noted:

  1. The name and address of the Licensor should be in accordance with those of the registrant of the licensed trademark recorded with the Trademark Office.

  2. The licensed trademark should be identical with the mark registered with the Trademark Office, and the licensed goods should not go beyond those covered by the registered mark to be licensed.

  3. The beginning date of the License should not be earlier than the registration date of the licensed trademark, while the ending date of the license should not go beyond the expiration date of the licensed mark; otherwise the license shall be re-recorded after the trademark registration is duly renewed.

  4. If any party of an Agreement is a Chinese company, its corporate stamp is required to be affixed to the Agreement to validate the Agreement.

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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