Document background
A Trademark License Agreement is a crucial legal instrument used when a trademark owner wishes to permit another party to use their trademark(s) while maintaining control over their intellectual property. This document is particularly important in the South African context, where it must comply with the Trade Marks Act 194 of 1993 and related legislation. The agreement typically includes detailed provisions on license scope, territory, payment terms, quality control, and usage guidelines. It's commonly used in franchise arrangements, brand expansions, merchandising deals, and international market entry strategies. The document must balance the licensor's need to protect their trademark rights with the licensee's commercial requirements, while ensuring compliance with South African competition law and exchange control regulations. A well-drafted Trademark License Agreement helps prevent unauthorized use, maintains brand integrity, and creates clear accountability between parties.
