Trademark/Brand Licensing in India

  • August 27, 2022
  • Dushyant Sharma
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Trademark licensing is the way to go if you want to expand your business. There are several types of trademark licenses and all of them are under the strict control of the owner. However, when it comes down to it, both the owner and the licensee are going to be benefited by this.

Once your trademark has gone through the registration, you have the exclusive rights to it. One of the rights that you get when you register it is trademark licensing. Now, a trademark licensing is a term that states you to authorize other individuals to use your mark.

The trademark licensing avails a second party to be able to use a registered trademark for a specific period of time. However, the rights to all the marks are still with the registered owner. The rights of using the trademark given to the licensee are not complete rights, the exclusive ownership rights to the mark still are in the hands of the owner of the trademark. 

Types of trademark licensing

There are several types of trademark licensing. These licenses dictate how the marks are supposed to be used by the licensee:

  1. Classical Trademark Licensing: These are the licenses that are provided for manufacturing the products.
  2. Merchandising: This form of license is given to the licensee in order to promote the goods. This form of licensing is prevalent in retail outlets.
  3. Franchising: In this form of license, specific rights are given for specific products under extremely strict guidelines and on a specific location and for a specific period of time.

What are the benefits associated with trademark licensing?

The benefits that are associated with the licensing of trademarks in India are as follows:

  1. It is easy to expand your business in the geographical region through licensing.
  2. Both the parties: the licenser and the licensee are at benefits.
  3. If a proper strategy is applied, then the license can make way for making the trademark rise in reputation.
  4. The brand visibility improves by a lot.

Trademark Licensing is a Dream, before you realize this dream you need to have Trademark Registration

What are the theories associated with trademark licensing?

There are three theories associated with trademark licensing:

  1. Principle of source Indication
  2. Principle of quality control
  3. Principle of connection in the course of trade

Among these theories, it is the principle of quality control that holds the most weight.

What is quality control in Trademark licensing?

When you are licensing your trademark to someone to expand the reach of your business, you need to keep the quality control of the product in check. This right in particular is extremely important to exercise for a simple reason that after all is said and done; you are the one who has the exclusive right to the trademark. To that end, if anything were to go wrong, you will be held responsible, not the guy who has gotten your license.

Trademark licensing is not trademark assignment

One of the major questions asked when it comes to the matter of licensing is-why not assignment. The reply to this very question is rather simple- assignment and licensing is not the same thing. Assignment to permanently transferring the ownership of the trademark while licensing is just making a very specific use of it for a specific amount of time and under specific conditions. The following are the points to remember when it comes to difference between licensing and assignment:

  1. A written form is not required for licensing, but it is important for assignment,
  2. Licenses are for a limited time while assignment is permanent.
  3. You do not require license to register in the trademark registry. However, it is importance for assignments.

Trademark licensing has enabled many to grow their business in the best way possible. If you want to make sure that your venture grows, you can apply for the same as well.

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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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