Finally, trademark licensing agreements will have the same general provisions contained in business contracts that contain, among other things, the following provisions: description of the parties; the intention of the parties who brought them together in a legally binding contract; If there are other trade relationships created by the agreement; Current legislation and, if necessary, compensation; Limiting liabilities guarantees, etc. You`ll find some provisions in most brand licenses. A licensing agreement should address the following: one of the most important conditions is quality control to protect the value of trademark rights; Parties – Intellectual Property – Identify the parties to the agreement and the intellectual property (brands) that are granted (these issues can be delineated in the subsidy clause). The trademark licence fee is also another key element of the trademark licensing agreement. The more valuable the brand, the higher the royalty for the brand`s licensees. As such, it is not uncommon for licensees to set minimum sales targets or expectations in the licensing agreement. A well-developed trademark licensing agreement will also be specific to how the licensee will be paid, how often payments can be made and the consequences if payment is delayed. This document provides general information and instructions for both potential licensees and licensees, as well as some examples of languages that should be incorporated into a comprehensive trademark licensing agreement. There are several elements of a trademark licensing agreement. The most important part of the agreement is to properly prove that the licensee continues to control the quality of goods or services sold in connection with the use of the trademark. Therefore, the quality control provision is one of the most important elements that are an integral part of trademark licensing agreements. Quality control of a trademark licensing agreement must ensure that the brand`s licensee has established standards to maintain the value of the brand on which consumers of the products or services relied.

General requirements for quality control of a trademark licensing agreement may include, among other things, the possibility of auditing the licensee`s accounting documents or accounting, the verification of the licensee`s facilities, the internal control of the licensee`s minutes and the verification of the use of printed media in the context of the use of the trademark.