Non Exclusive Trademark License Agreement Template for Australia

A Non Exclusive Trademark License Agreement allows you to grant permission for others to use your registered trademark while maintaining your ownership rights and the ability to license the same mark to additional parties. Under Australian law, this document creates a legally binding relationship that protects your intellectual property while enabling controlled commercial exploitation of your brand.

When do you need this document?

You need this agreement when expanding your business through licensing arrangements, such as allowing retailers to sell products bearing your trademark, granting franchisees the right to use your brand name and logo, or permitting manufacturers to produce goods under your trademark. This document is particularly valuable for businesses seeking to enter new markets without direct investment, generate additional revenue streams through royalties, or establish distribution networks while maintaining quality control over how your trademark is used.

Key legal considerations

The agreement must clearly define the scope of permitted use, including specific products or services covered, geographical territories, and any restrictions on how the trademark can be displayed or marketed. Quality control provisions are crucial to prevent trademark dilution and maintain your rights under the Trade Marks Act 1995. You should include detailed royalty terms, payment schedules, and reporting requirements to ensure proper compensation. Termination clauses must specify grounds for ending the agreement, notice periods, and post-termination obligations. The document should also address liability allocation, indemnification provisions, and dispute resolution mechanisms to protect both parties' interests.

Legal requirements in Australia

Under the Trade Marks Act 1995 (Cth), trademark licenses must be documented in writing to be legally enforceable and may require registration with IP Australia for certain protections. The agreement must comply with the Competition and Consumer Act 2010, ensuring that licensing terms don't breach competition laws or constitute anti-competitive behavior. Australian Consumer Law provisions apply to any consumer-facing aspects of the licensed products or services, requiring compliance with consumer protection standards. The document must include proper identification of the registered trademark, including registration numbers and classes, and specify whether the license covers existing registrations only or extends to future applications. Quality control mechanisms must be sufficient to maintain trademark validity while respecting the licensee's operational autonomy.