Licences increase the commercial value of your trademark

It isn’t just large organisations that license trademarks relating to their products and/or services. Relatively small organisations or individuals (portrait rights) can also realise commercial objectives through licensing. However, to be effective, it is important to properly record the conditions under which the licence is issued in a licensing agreement. This will increase the return on your licences and prevent surprises.

Properly record agreements

Your product or service is good, but perhaps the financial means that you need to exploit it yourself are limited. In this case, a licence is an excellent way of expanding your market. However, to fully take advantage of the opportunity, it is important that the agreements underpinning the cooperation are properly recorded in a licensing agreement.

A licensing agreement forms the legal basis for the cooperation. As a holder of a trademark, you naturally want all the basic details to be laid down in the agreement. The following should be considered:

• The scope of the licence: Which products or services are covered by the agreement?
• The term of the agreement: For which period is the licence granted?
• The demarcation of the area: For which territory/territories does the licence apply?
• The amount of the royalties: What is the fee for using the licence?
• The quality of the products or services: Which quality criteria must the licensee satisfy?

Of course, it is important to look at the character of the product or service too. Every contract benefits from individual tailoring. With a clear licensing agreement, your burden of proof in disputes will be a lot lighter.

Would you like to know more about the licensing possibilities?

Licences can be a fantastic tool for a company to realise its business or personal objectives more quickly. Not all products and services are eligible for licensing, and there are also a number of potential pitfalls that need to be considered in advance if they are to be avoided. Novagraaf will gladly assist you in the development of a profitable licensing strategy and with the specific details of your licensing agreement. Would you like to know more? Then please contact Novagraaf using the contact form at the top right of this page.

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