Trade Mark Licence Agreement for Hong Kong

Trade Mark Licence Agreement Template for Hong Kong

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Trade Mark Licence Agreement

"I need a Trade Mark Licence Agreement for an exclusive license of our luxury fashion brand trademarks to a Hong Kong manufacturer, with strict quality control provisions and minimum annual royalty payments of HKD 2 million, starting March 2025."

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What is a Trade Mark Licence Agreement?

The Trade Mark Licence Agreement is a crucial document used when a trademark owner wishes to permit another party to use their registered trademark(s) in Hong Kong and potentially other territories. This agreement is essential for businesses expanding through brand licensing, franchising, or entering new markets through local partners. It must comply with Hong Kong's Trade Marks Ordinance (Cap. 559) and related regulations, while addressing commercial requirements such as quality control, royalty payments, and usage restrictions. The agreement is particularly important in protecting the licensor's intellectual property rights while providing the licensee with clear parameters for trademark usage. It includes detailed provisions on permitted use, territorial scope, quality standards, payment terms, and termination rights, making it a fundamental tool for brand expansion and commercialization strategies.

What sections should be included in a Trade Mark Licence Agreement?

1. Parties: Identification and details of the licensor and licensee

2. Background: Context of the agreement, including trademark ownership and business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of License: Scope and nature of the license (exclusive/non-exclusive), permitted uses, and territorial scope

5. License Fee and Payment Terms: Financial terms including royalties, payment schedule, and calculation methods

6. Quality Control: Standards for trademark usage, approval processes, and quality maintenance requirements

7. Protection of the Trade Mark: Obligations regarding trademark protection, infringement reporting, and enforcement

8. Representations and Warranties: Parties' assertions about trademark ownership, authority to license, and other material facts

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Post-Termination Obligations: Obligations and rights of parties after agreement termination

11. Confidentiality: Protection of confidential information exchanged during the agreement

12. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Trade Mark Licence Agreement?

1. Sub-licensing Rights: Include when licensee is permitted to grant sub-licenses to third parties

2. Marketing and Promotion: Include when specific marketing requirements or restrictions need to be specified

3. Manufacturing Standards: Include for licenses involving product manufacturing

4. Distribution Requirements: Include when specific distribution channels or methods need to be regulated

5. Export Restrictions: Include when there are specific territorial restrictions on export

6. Minimum Performance Requirements: Include when setting specific sales targets or performance metrics

7. Insurance Requirements: Include when specific insurance coverage is required

8. Competition Compliance: Include when there are specific competition law considerations

9. Data Protection: Include when personal data processing is involved in the license arrangement

What schedules should be included in a Trade Mark Licence Agreement?

1. Schedule 1 - Licensed Trade Marks: Details of all licensed trademarks including registration numbers and classes

2. Schedule 2 - Licensed Territory: Detailed description of geographical territories covered by the license

3. Schedule 3 - Licensed Products/Services: Comprehensive list of products/services covered by the license

4. Schedule 4 - Quality Control Standards: Detailed quality control specifications and procedures

5. Schedule 5 - Royalty Calculations: Detailed methodology for calculating royalties

6. Schedule 6 - Brand Guidelines: Specific requirements for trademark usage and brand representation

7. Schedule 7 - Approval Procedures: Detailed procedures for obtaining approval for trademark usage

8. Appendix A - Trade Mark Specimens: Visual representations of the licensed trademarks

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Affiliate
Agreement
Approved Products
Brand Guidelines
Business Day
Commencement Date
Confidential Information
Control
Effective Date
Force Majeure Event
Governing Law
Group
Intellectual Property Rights
License
Licensed Products
Licensed Services
Licensed Trade Marks
Licensed Use
Net Sales
Quality Standards
Royalty
Royalty Period
Subsidiary
Term
Territory
Trade Mark Register
Trade Marks Ordinance
Working Day
Year
Initial Term
Renewal Term
Marketing Materials
Minimum Royalty
Net Wholesale Price
Quality Control Manual
Registration
Related Company
Sales Report
Specifications
Style Guide
Sub-License
Termination Date
Trade Dress
Trade Mark Applications
Use
Renewal Fee
Approval Process
Authorized Users
Competition Law
Distribution Channels
Goodwill
Gross Revenue
Improvements
License Fee
Quality Control Requirements
Registered Trade Marks
Reporting Period

Clauses

Relevant Industries

Retail

Consumer Goods

Fashion and Luxury

Food and Beverage

Technology

Entertainment

Sports and Recreation

Manufacturing

Pharmaceuticals

Automotive

Electronics

Telecommunications

Media

Software

Hospitality

Relevant Teams

Legal

Intellectual Property

Commercial

Brand Management

Marketing

Business Development

Compliance

Finance

Operations

Risk Management

Corporate Affairs

Relevant Roles

Legal Counsel

Intellectual Property Manager

Brand Manager

Commercial Director

Licensing Manager

Business Development Manager

Compliance Officer

Contract Manager

Chief Legal Officer

General Counsel

IP Rights Manager

Commercial Manager

Brand Protection Manager

Marketing Director

Operations Manager

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