Licensing

Trademark licensing is a legal agreement whereby the licensor, who owns the trademark, grants permission to the licensee, to use the trademark in connection with particular goods or services. Through the use of this agreement, the licensee can increase their market presence by taking advantage of the trademark’s well-established goodwill and brand awareness. A trademark license agreement’s terms usually address the extent of use, length, quality control procedures, geographic coverage, and financial agreements, including royalties. Exclusive licensing gives the licensee exclusive rights; non-exclusive licensing permits many licensees. When a trademark is strategically used, it can help a licensor create new revenue streams and expand their brand into other product categories or markets without them having to get directly involved in production and distribution.

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