The Simple Trademark License Agreement is a fundamental legal instrument used in Hong Kong when a trademark owner wishes to permit another party to use their registered trademark(s) while maintaining control over their intellectual property. This document is particularly relevant in commercial scenarios where businesses seek to expand their market presence through authorized brand usage, franchising, or merchandising arrangements. The agreement, governed by Hong Kong law including the Trade Marks Ordinance (Cap. 559), establishes clear parameters for trademark usage, quality control measures, and commercial terms. It is designed to protect the trademark owner's interests while providing the licensee with clearly defined rights and obligations. The document is essential for businesses engaging in brand licensing, whether for manufactured products, retail operations, or service delivery.
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1. Parties: Identification of the Licensor and Licensee with full legal names and addresses
2. Background: Context of the agreement, including trademark ownership and parties' intentions
3. Definitions: Key terms used throughout the agreement including 'Licensed Mark', 'Territory', 'Term', and 'Licensed Products'
4. Grant of License: Scope of the license grant, including whether exclusive or non-exclusive, and territory restrictions
5. Term and Termination: Duration of the agreement and circumstances for termination
6. License Fees and Payment Terms: Financial terms including license fees, royalties, and payment schedules
7. Quality Control: Standards for using the trademark and Licensor's right to inspect and approve use
8. Protection of the Mark: Obligations regarding trademark protection and infringement actions
9. Representations and Warranties: Basic warranties about trademark ownership and right to license
10. General Provisions: Standard boilerplate clauses including notices, governing law, and entire agreement
1. Sub-licensing Rights: Include when Licensee is permitted to sub-license the trademark to third parties
2. Marketing and Promotion: Include when specific marketing requirements or restrictions need to be imposed
3. Minimum Performance Requirements: Include when Licensee must meet specific sales or performance targets
4. Insurance: Include when specific insurance coverage is required for trademark use
5. Assignment: Include when transfer rights need to be specifically addressed
6. Non-Competition: Include when restricting Licensee's ability to deal with competing products
7. Dispute Resolution: Include when specific dispute resolution procedures (e.g., arbitration) are required
1. Schedule 1 - Licensed Marks: Detailed description and images of the licensed trademarks, including registration numbers
2. Schedule 2 - Licensed Products: List of products/services for which the trademark can be used
3. Schedule 3 - Territory: Detailed description of geographical areas where license is valid
4. Schedule 4 - Quality Control Standards: Specific quality standards and guidelines for trademark usage
5. Schedule 5 - Fee Schedule: Detailed breakdown of license fees, royalty calculations, and payment terms
6. Appendix A - Trademark Usage Guidelines: Visual guidelines and rules for trademark application and presentation
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