What is a Trademark License?

A trademark (also written trade mark or trade-mark) is a type of intellectual property consisting of a recognizable sign, design, or expression which identifies products or services of a particular source from those of others, although trademarks used to identify services are usually called service marks. The trademark owner can be an individual, business organization, or any legal entity.

A trademark may be located on a package, a label, a voucher, or on the product itself. For the sake of corporate identity, trademarks are often displayed on company buildings. It is legally recognized as a type of intellectual property.

The first legislative act concerning trademarks was passed in 1266 under the reign of Henry III, requiring all bakers to use a distinctive mark for the bread they sold. The first modern trademark laws emerged in the late 19th century. In France, the first comprehensive trademark system in the world was passed into law in 1857.

The Trade Marks Act 1938 of the United Kingdom changed the system, permitting registration based on “intent-to-use”, creating an examination-based process, and creating an application publication system. The 1938 Act, which served as a model for similar legislation elsewhere, contained other novel concepts such as “associated trademarks”, a consent to use the system, a defensive mark system, and a non claiming right system.

The symbols ™ (the trademark symbol) and ® (the registered trademark symbol) can be used to indicate trademarks; the latter is only for use by the owner of a trademark that has been registered.

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What are the Benefits of a Trademark License?

Brand Expansion

A trademark license provides an opportunity to expand the reach and presence of their brand. By granting licenses to third parties, the licensor can leverage the licensee's resources, expertise, and distribution channels to introduce their trademarked goods or services into new markets or territories.

Revenue Generation

A trademark license allows the licensor to generate additional revenue streams. The licensee typically pays royalties or fees to the licensor for the right to use the trademark. This can be a significant source of income for the trademark owner, especially if multiple licenses are granted to different licensees.

Market Penetration

A trademark license provides a valuable tool for market entry. By using an established and recognized trademark, the licensee can benefit from the reputation, consumer trust, and brand recognition associated with the trademark. This can help the licensee gain a competitive edge, attract customers, and establish their presence in the market more easily.

Goodwill and Reputation

A trademark license allows the licensee to associate their products or services with a well-known and trusted brand. This association can enhance the perceived value, quality, and credibility of the licensee's offerings, thereby increasing consumer confidence and facilitating business growth.

Collaboration and Partnerships

A trademark license can enable collaborations and partnerships between the licensor and licensee. This can lead to joint marketing initiatives, co-branding opportunities, and shared resources, which can benefit both parties by leveraging their respective strengths and expanding their market reach.

Cost Sharing and Risk Mitigation

Trademark license can provide cost savings and risk mitigation. Instead of developing and building their own brand from scratch, the licensee can leverage an established trademark, which reduces the time, effort, and resources required to create brand recognition and awareness.

Why Trademark License is Required?

A trademark license is required for several reasons. Firstly, it ensures legal compliance by granting permission to use the trademark, reducing the risk of infringement. Secondly, it allows the trademark owner to retain ownership and control over their brand. Thirdly, a license enables the owner to protect the brand’s integrity and reputation by setting quality standards for its use.

Moreover, it provides an avenue for market expansion and revenue generation through licensing to third parties. Additionally, a license mitigates risks for licensees by leveraging an established trademark, and it opens up collaboration opportunities between the licensor and licensee. Overall, a trademark license is crucial for legal compliance, brand protection, market expansion, revenue generation, risk mitigation, and collaboration.

Who can get Trademark License?

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Brand Name

Document Required for Trademark License

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Role of Shamkris and Process of Trademark License

Shamkris adopts a results-oriented approach to compliance with mandatory licence requirements in the organization. A simple and guidance methodology help organisation to achieve licence in a timely manner and cost-effective. Shamkris support 100% in advisory, Guidance, Compliance with respect to license requirements to obtain approval.

The License process described below:

  • Advisory for the document required
  • Preparation of documents as per application & list of documents.
  • Application File
  • Inspection by the department if required
  • Liason department
  • Yearly Compliance if Applicable
  • Renewal when due

Trademark License?

In trademark licensing, a trademark owner (Licensor) grants permission to another (Licensee) to use that trademark on mutually agreed terms and conditions. Trademark licensing was considered impossible at one time given that one of the functions of a trademark was to indicate source.
The procedure for registering trademark in India
Step 1: trademark search. (time: about 4 hours) Cost: Rs. 0 to Rs.
Step 2: Create a trademark application. (time required: 2-3 days)
Step 3: trademark registration. (time 8 to 24 months)
The most important of these is the marketing power the brand brings to the licensee’s products.
Achieve instantaneous recognition.
Enhance their authenticity and credibility.
Reduce in-house costs.
Gain access into new distribution channels.
Enter new regions.
The next thing you need in order to license your trademark is legal ownership of your trademark. This means that you must have a trademark that is registered with the federal government. … Alternatively, you can save yourself time by hiring a qualified trademark attorney to handle all of the legal paperwork for you.