Contracts are very important in day to day running of a business. They form the governing principle between the parties to the contract. Contracts bind the parties to certain covenants and in case of breach of any of the terms, makes them liable to pay to the other party. One of the important things businesses must consider while dealing with IPR is to enforce Contracts relating to Trademarks, Copyrights, Patents, etc
A trademark agreement allows two or more parties to use the same or similar mark subject to conditions.
If yes, then you would have probably tried a lot of food places? And amidst you would have also wanted to start one under the same brand name or been to places with the same name operating worldwide (Just like McDonald’s or Domino's).
Have you ever wondered how it is possible to run under the same name when the proprietor of the brand is one person or company? This is common across industries; they are able to use similar branding. That is where a trademark agreement finds its roots from.
Assignment of a trademark is the process where the ownership of the mark is transferred from one party (the registered or unregistered proprietor of the mark) to another party.
The assignor (transferring party) transfers property rights in the mark to the assignee (receiving party). However, an assignment differs from a license, as a license is only the grant of permission to use a mark, but it does not transfer any rights of ownership and is associated with Technology Transfer Agreements (TTA).
A trademark license agreement is a contract between a licensor (the registered trademark owner) and a licensee, whereby the licensor grants the right to use the registered trademark to the licensee. The right to use herein can be the right to produce/manufacture the products under the registered trademark and/or the right to distribute/sell the products or services under the licensed trademark. A trademark license agreement can be prepared as a separate agreement or as part of a general business contract between the parties.
There is no boilerplate format for a trademark agreement and it could go against the interest of the trademark proprietor. It is pertinent to note that the terms and conditions of any such agreement should deal with the specific situation. Indeed, trademark agreements vary widely in their scope and purpose. To be truly effective for both parties, a trademark agreement must be customized to meet their unique needs.