Trademark Licensing

Trademark Licensing

A trademark license involves the granting of permission from a trademark owner - the licensor - to another party - the licensee - to use the trademark in the marketing of goods and services.

In addition to general licensing concepts such as specifying the license grant and the consideration provided in exchange for the grant, a trademark license has its own special set of issues. A large measure of the value of a trademark consists of its "goodwill" i.e., the reputation for quality in connection with the source of the goods and services sold under the mark. A trademark owner can directly receive and control that goodwill where the mark is used in connection with the owner's goods and services. In the context of a license, however, a licensee is selling the goods and services bearing the owner's mark. Issues of quality control, avoidance of confusion, and the inuring of goodwill to the owner are of critical importance. A trademark owner must be able to protect the goodwill associated with the mark and the value for the innovation that went into the development of the mark.

McHale | Slavin has extensive experience in the preparation and negotiation of trademark licenses. Contact us for additional information or to schedule a consultation.