Trademark Licensing

Scope

Trademark Licensing lets a partner use your brand in exchange for payment, while you retain ownership and control.

Commercial Terms

• Scope: Which marks, goods and services, territories, and exclusivity (exclusive, sole, non-exclusive).
• Royalties, minimum guarantees, reporting, and audit rights.

Quality Control

A trademark exists to ensure a consistent source and standard for customers. Without quality control, the mark can lose its effectiveness and even risk invalidation in some jurisdictions.

• Brand guidelines, approval rights, and inspection rights.

Brand Protection

• Provisions to prevent uses that would tarnish or dilute the mark.
• Clear provisions for handling stock and marketing materials on termination.
• Provisions ensuring goodwill generated by the licensee's use accrues to the owner.

Bigger Picture

Licensing sits within the Commercialize stage of our 360 method and involves our commercial contracts and transactions work. It builds on trademark protection upstream, as a properly secured mark can generate royalty income that interacts with the innovation income deduction on the tax side.

How We Help

• We structure and draft the licence.
• We negotiate the terms.
• We build in quality control and reporting.
• We manage renewals and enforce against misuse.

Frequently Asked Questions

• Why is quality control so important in a trademark licence?: Because a trademark guarantees a consistent source and standard to customers. Without quality control, the mark can stop performing that function and in some jurisdictions an uncontrolled licence can put the registration at risk.
• What is the difference between exclusive, sole and non-exclusive licences?: An exclusive licence lets only the licensee use the mark in the defined scope, even excluding the owner; a sole licence allows the owner and one licensee; a non-exclusive licence can be granted to several licensees. The choice affects price and strategy and should be deliberate.
• Should a trademark licence be recorded?: In many jurisdictions, a licence can or should be recorded against the registration, which can matter for enforcement and for the licensee's standing to act. We advise on recordal where it is available and worthwhile.
• Can licensing royalties be tax-efficient?: Brand royalty income can interact with the Belgian innovation income deduction and other regimes, so we look at the licensing and tax positions together rather than in isolation.

Benefits

• Clearly defined scope, territory, and exclusivity.
• Provisions for quality control that protect the registration.
• Terms that hold up royalty, minimum, and audit rights.
• Provisions for brand protection and termination.
• Licensing and tax positions coordinated.

Contact Us

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