Although the terms of each licence are different and can be freely negotiated between the taker and the taker, all licenses must have at least the following provisions to be valid: a trademark license (distinct from that of a trademark assignment) is in fact an agreement in which a licensee (the «donor») allows another person («the taker») to use the donor`s mark in connection with certain products or services. Although a trademark licensing agreement is generally not required in writing to be legally enforceable, it is strongly recommended that all trademark licensing agreements be written and signed by the licensee and the licensee. The benefits of licensing can be viewed from two angles: licensees and licensees. If the licensed trademark is registered with the U.S. Patent and Trademark Office (USPTO), the trademark license can be registered with the Assignment Services Division to constructively communicate trademark rights to the world. However, many licenses contain confidential or commercially sensitive information that may not be made available to the parties. In such cases, it may be possible to register an edited version of the license agreement or to file a separate document, executed by the parties and referring to the existence of a license. In summary, granting a trademark license for a trademark holder can be an effective and relatively inexpensive way to expand the use and public recognition of its trademark. But there are also many pitfalls that licensees need to be aware of to avoid reducing the value of their trademarks or, worse, losing their trademark rights together. From a licensee`s point of view, the quality control rules for a trademark license are the most important.
The licensee must constantly ensure that the licensee`s products/services meet a particular standard, otherwise the value of the licensee`s brand could be damaged. In addition, licensees often require that advertising and advertising materials produced by their licensees be authorized prior to public broadcast.