Trademark License Agreement

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Legal | Expert-Drafted

Trademark License Agreement 

Everything you need to know about

What is a Trademark License Agreement?

A Trademark License Agreement is a legal contract between a trademark owner (licensor) and another party (licensee) that allows the licensee to use the registered trademark under specific terms and conditions. It defines the scope, duration, territory, and purpose for which the trademark can be used. This agreement ensures that the trademark owner retains ownership while granting limited usage rights to the licensee. It is governed by the Trade Marks Act, 1999, and helps businesses expand brand presence without transferring ownership of the trademark.

Who Can Enter into a Trademark License Agreement?

Any registered trademark owner in India can enter into a Trademark License Agreement with an individual, company, franchisee, distributor, or manufacturer who wishes to use the mark legally. The licensor must be the rightful owner or assignee of the trademark, while the licensee must be authorized to use it for specific goods, services, or regions. Both parties must mutually agree to the terms related to quality standards, duration, and royalty payments. Even foreign entities holding Indian-registered trademarks can enter into such agreements through authorized representatives.

 

Trademark License agreement for brand expansion

 

When Should You Create a Trademark License Agreement?

A Trademark License Agreement should be created before allowing any third party to use your registered trademark. It is ideal when a business wants to expand its brand through franchises, distributors, or strategic partnerships without transferring trademark ownership. The agreement should also be executed when granting permission for manufacturing, marketing, or co-branding activities under your brand name. Creating it early helps prevent disputes, misuse, or dilution of your brand identity while ensuring legal protection for both parties.

Why Ebizfiling for Trademark License Agreement Drafting?

Ebizfiling provides expert legal support for drafting a Trademark License Agreement that protects your brand rights and business interests. We also assist with related services such as Trademark Registration, Trademark Renewal, and Trademark Assignment. To get started, call +91 9643 203 209 or visit www.ebizfiling.com for professional trademark licensing support.

Charges for the Trademark License Agreement

ESSENTIAL

6999/-

(All Inclusive)

  • Drafting of Trademark License Agreement
  • Execution of Trademark License Agreement

Why is a Trademark License Agreement Important?

Legal Authorization

It provides formal permission for another party to use a registered trademark under defined terms and conditions.

Brand Authorization

It helps the trademark owner maintain quality standards and prevent misuse or dilution of the brand.

Revenue Generation

It allows the owner to earn royalty income by licensing the trademark without transferring ownership.

Business Expansion

It enables brand growth through franchises, collaborations, or distributors while retaining legal ownership.

Documents Required for a Trademark License Agreement

  • Registration Certificate of trademark
  • KYC documents of Owners
  • Details of all the parties to the Trademark License Agreement (with whom License agreement needs to be executed).

Advantages of Having a Trademark License Agreement

Points to make your decision easy

Legal Protection

It legally secures the rights of both the trademark owner and the licensee under clearly defined terms.

Brand Expansion

It allows the brand to reach new markets through franchises or authorized distributors without losing ownership.

Revenue Opportunity

The licensor can earn consistent royalty income from authorized use of the trademark.

Quality Assurance

It helps maintain product or service quality by setting strict usage and brand representation standards.

Ownership Retention

The trademark owner continues to hold full ownership rights even after granting usage permission.

Dispute Prevention

It reduces conflicts by defining each party’s roles, responsibilities, and termination clauses clearly.

Business Credibility

A written agreement builds trust between the licensor and licensee, ensuring lawful and transparent use.

Long-Term Security

It safeguards the brand from misuse, infringement, or unauthorized reproduction in the future.

How to get Trademark License Agreement Online?

 

Trademark License Agreement Process in 5 steps

1

Submit Required Details

2

Share Trademark Information

3

Draft Agreement

4

Review and Finalize Terms

5

Get Digitally Signed Copy

What Does Ebizfiling Do for Trademark License Agreement Preparation?

  • Ebizfiling assists in collecting all necessary details of the trademark and both parties involved in the agreement.
  • Our legal experts draft a customized Trademark License Agreement covering scope, territory, royalty, and usage rights.
  • We ensure that the agreement complies with the Trade Marks Act, 1999, and aligns with your business objectives.
  • The draft is reviewed thoroughly, and modifications are made based on your feedback for complete accuracy.
  • Once approved, we provide a digitally signed and legally valid agreement ready for execution.
  • Ebizfiling ensures your trademark licensing process is quick, compliant, and professionally documented for long-term protection.
FAQ

FAQs on Trademark License Agreement in India

Get answers to all your queries

  • What is a Trademark License Agreement?

    A Trademark License Agreement is a legal contract that allows one party (licensee) to use another party’s registered trademark (licensor) under specific conditions.

  • Who can enter into a Trademark License Agreement?

    Any registered trademark owner and an authorized individual, company, or organization intending to use that mark can enter into a licensing agreement.

  • Is trademark licensing allowed under Indian law?

    Yes, trademark licensing is permitted under the Trade Marks Act, 1999, and must be done through a written agreement.

  • What is the purpose of a Trademark License Agreement?

    The main purpose is to grant permission for using a trademark while ensuring brand protection, quality control, and revenue generation.

  • Is registration of a Trademark License Agreement mandatory?

    Although not mandatory, it is recommended to record the agreement with the Trademark Registry for better legal enforceability.

  • Who are the parties involved in a Trademark License Agreement?

    The two parties are the licensor (the trademark owner) and the licensee (the person or company using the trademark).

  • Can a trademark be licensed without registration?

    No, only registered trademarks can be licensed legally in India. The owner must have a valid registration certificate.

  • What are the key clauses in a Trademark License Agreement?

    Important clauses include license scope, territory, duration, royalty, quality control, renewal, and termination terms.

  • Can a foreign company license its trademark in India?

    Yes, foreign trademark owners can license their trademarks to Indian entities under a legally binding agreement.

  • What is the difference between trademark assignment and trademark licensing?

    In an assignment, ownership is permanently transferred, while in licensing, ownership remains with the licensor.

  • How long is a Trademark License Agreement valid?

    The duration depends on the terms decided between the parties and can be renewed periodically by mutual consent.

  • Can a licensee sub-license the trademark to others?

    Only if the agreement explicitly allows sub-licensing; otherwise, the licensee cannot transfer the rights further.

  • What happens if a licensee violates the agreement?

    The licensor can terminate the agreement and take legal action for breach of contract or misuse of the trademark.

  • Does a Trademark License Agreement require government approval?

    No prior government approval is required, but recording it with the Trademark Registry is advisable for legal recognition.

  • Can the agreement include multiple trademarks?

    Yes, one agreement can cover multiple trademarks owned by the same licensor if they belong to the same business category.

  • Is royalty payment mandatory in all license agreements?

    While not mandatory, most agreements include royalty or fee payments as compensation for using the trademark.

  • What are the benefits of licensing a trademark?

    It helps expand brand reach, generate additional income, and maintain control over brand usage and quality.

  • Can the Trademark License Agreement be terminated early?

    Yes, the agreement can be terminated by either party as per the conditions specified in the termination clause.

  • How is quality control maintained in trademark licensing?

    The agreement includes specific clauses allowing the licensor to monitor and ensure that the brand standards are maintained.

  • Why choose Ebizfiling for Trademark License Agreement drafting?

    Ebizfiling offers expert legal drafting, customization, and compliance with Indian trademark laws to ensure your agreement is accurate, valid, and enforceable.

Reviews

  • Manisha Nirmal

    Manisha Nirmal

    30 Jul 2025

    Chintan and Team at Ebiz is professional and helpful always. We are associated since early 2024 and it's always been good experience to work together on many projects.

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    Sandhya Sharma

    09 Apr 2022

    Excellent service, My account manager Mr.Harish is very professional. Has great knowledge on the US company registration. Has patiently dealt with all my queries. Overall it was a great experience working with them. Thank you Ebizfiling for making this process so quick and successful.

  • client review, Ebizfiling

    Anshul Sharma

    09 Apr 2022

    Great support from team ebizfiling. Whole process was very smooth and transparent. Package suggested to us was value for money. Compliance manager guided us throughout the process of LLP incorporation. Thanks for your kind support

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