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Licences and agreements: expansion of trademark rights

Licences are an excellent tool for bringing trademarks and/or ideas to the attention of a larger and wider national and international audience. There may come a day when you are interested in starting a new business, when you want to further expand existing business activities or have the desire to grow further nationally and internationally. It may also be that you want to merchandise the goodwill or popularity of your brand or product, or want to quickly put a merchandising format on the market by means of franchising. In many of these situations licences provide an excellent tool to realise these goals.

Developing a licensing strategy

Generally a licence will contain permission from the holder of a trademark and/or other Intellectual Property rights for a party to use those rights in a particular territory subject to certain conditions. This use is usually subject to agreed financial compensation (royalties) and is governed by a licensing agreement.

Licences allow companies to expand into new markets or territories via partnership with a third party. But, to work successfully, it is essential that the conditions under which a licence is issued have been clearly recorded. The ultimate success of your licensing programme depends upon your licensing strategy and objectives, with attention being paid to subjects like:

  • The degree of exclusivity
  • The geographical area
  • Agreements on quality
  • The term of the agreement
  • The amount of the royalties

Would you like to know more about licences?

Licences can be an excellent tool for achieving your business objectives more rapidly. However, there are a number of pitfalls that need to be closely monitored, such as the risk of parallel imports or dependence upon and influence on the quality and reputation of licensees. Novagraaf will be pleased to advise you about licences, licensing strategy and licensing agreements, as well as about the necessity of preparing a licensing agreement. You can also turn to us with questions about brand management, brand identity and marketing. We can be reached by email or telephone using the contact form at the top right of this page.