What issues should be paid attention to when concluding a trademark license contract?

It is not difficult to find that when we go to shopping malls now, there are all kinds of products, each with its own characteristics in appearance, efficacy, use effects, etc. In fact, most products have Trademarks. Today, the editor of Legal Savior Network brings you some issues that should be paid attention to when entering into a trademark license contract.

What are the issues that should be paid attention to when concluding a trademark license contract

1. Firmly control the quality of goods

The property value of a trademark lies in the reputation it enjoys. Licensing others to use a trademark means that the reputation of the trademark is attached to the behavior of the licensee and the goods it provides. Quality control in licensing contracts is therefore an extremely important aspect. There are many lessons worth noting in this regard.

2. Choose partners carefully

For product quality control, licensors must first be careful Choose partners and let those companies with better production capabilities, higher management levels, and stronger contract performance capabilities serve as licensees. Before granting the license right, the licensor shall inspect and test the licensee's legal personality, production capacity, management level, product quality, etc. Products that do not meet the same quality standards as your own products cannot be sold and licensed. After the licensing contract is concluded, the licensor should pay close attention to the production and sales of the licensee to prevent any damage to the trademark reputation of the licensee in terms of product quality and after-sales service.

During the contract period, the licensor is responsible for carrying out necessary supervision over the licensee's production process, craftsmanship, product inspection and management. When the licensee's products fail to meet the product quality of the licensed registered trademark, the licensor should take decisive measures to prevent the situation from developing further. If necessary, it should terminate the contract outright and withdraw the trademark license right.

3. Diligently safeguard trademark rights

The licensor has the obligation to guarantee the licensed trademark rights. Certainty and stability, safeguarding the licensee’s right to use. Specifically, the licensor should ensure that the registered trademark under the contract is authentic and reliable, is a commodity trademark or service trademark that has been reviewed and approved for registration by the trademark authority, and that the trademark is still within the validity period of legal protection.

The licensor shall not sign independent agreements with more than two enterprises in the same area.Occupy the license contract, resulting in a conflict in the use rights of two or more licensees. During the validity period of the contract, the licensor shall not arbitrarily transfer the registered trademark to a third party. If a transfer is necessary, the licensor must explain the situation to the licensee, obtain the licensee's consent, or terminate the license contract with the licensee.

The licensor should also take effective measures to maintain its trademark rights and bear the necessary fees, such as handling them in a timely manner. For behaviors that occur in the market, if it is an exclusive license or an exclusive license, the licensee can file a lawsuit, and the licensor actively participates in cooperative actions. If it is a general license, the licensor will sue, but the licensee should promptly notify the licensor of the facts and evidence of the infringement.

4. Supervision of trademark use cannot be relaxed

How to maintain trademark credibility and prevent the quality of goods using trademarks Losing control and harming the interests of trademark owners and protecting the rights and interests of consumers is an important task of corporate trademark management. Supervision of the licensee's trademark use includes: First, the licensed trademark must be consistent with the registered trademark. The licensee's use of a registered trademark is the same as the trademark owner's own use, and is limited to the approved registered trademark and the approved products. It shall not exceed the approved scope of goods for use, and the text and graphics of the registered trademark shall not be arbitrarily modified.

At the same time, the licensee must also use the goods within the scope of the licensed goods in accordance with the contract. Second, the licensed goods should be marked with the name of the licensee and the place of origin of the goods. In the practice of trademark licensing, some companies that are licensed to use trademarks not only use the licensor's trademark, but also use the licensor's factory name and the name of the place of origin of the goods. This kind of behavior can easily misunderstand consumers and may also have a negative impact on the licensor's corporate image and business reputation.

In order to prevent the use of trademark licenses from infringing upon the legitimate rights and interests of trademark owners and consumers, it is stipulated that anyone who uses someone else’s registered trademark with permission must use the trademark before using it. The name of the licensee and the place of origin of the goods are marked on the goods with a registered trademark. As a licensor, the trademark owner should also pay attention to the supervision of the licensee's trademark use to prevent things that are detrimental to the company's reputation and product credibility.

The above is the relevant knowledge about the above issues compiled by Hualu editor for you. This website provides you with professional lawyer consultation. If you have any questions, Welcome to the Legal Savior Network for consultation.