Detailed clauses relate to authorizations and restrictions on the use of trademarks by the licensee. The restrictions are based on two key elements, namely the territory and the purposes for which the taker can use the trademark or trademarks. The “designated purposes” for which the taker may use the trademark or brands may be the sale of goods, the provision of services or both. The terms of this trademark license are broad enough to allow either combination, provided they are defined accordingly. In return for the use of the trademark or trademarks, the licensee is required to pay a fee. An option is included in the contract to pay an advance. This trademark license is intended to be used in situations where one party owns (and owns intellectual property) of one trademark (or several brands) and another party (the licensee) wishes to use those trademarks. The terms of this license specify the conditions of use of the trademark or trademarks by the licensee. Another long-form brand license is also available. The “long form” license is designed for the sale of goods and specifically concerns products, not services. A number of aspects of the licence are dealt with in more detail and allow for greater control by the licensee.
This short licensing agreement is recommended for most transactions, but some users who require a high level of complexity for applying their brands to products may consider the long form document. The terms of this model are flexible enough to allow one or more brands to be licensed. Although many terms relate to trademarks, the document is nevertheless appropriate for use in the licensing of unregistered trademarks. In some situations, users can apply the contract to a combination of the two. The restrictions and specified purposes remain open to users of this document. Specific definitions that leave no ambiguity are highly recommended.
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