Trade Mark Royalty Agreement

Licences can be used for many purposes and across a wide range of subject matter. In many cases, a licence allows one party to use something owned by another party in return for payment.

Payment under licences often takes the form of royalties, usually regular payments calculated as a percentage of income generated by the licensee’s activities.

This Trade Mark Royalty Agreement is designed for royalty-based trade mark licensing arrangements. It can be used for a single trade mark, multiple trade marks, registered trade marks, unregistered trade marks, or a combination of registered and unregistered trade marks.

Royalty-Based Trade Mark Licence Payments

The licence granted by this agreement may be either exclusive or non-exclusive.

Payment may be by royalties alone, or by an initial fee, usually paid on the date of the agreement, followed by royalties.

The agreement also includes provision for an advance against royalties. Where an advance is used, it must be recouped before royalty payments begin.

Registered and Unregistered Trade Marks

The agreement is broad enough to cover registered trade marks and unregistered trade marks.

Although many terms relate to registered trade marks, the document remains suitable for unregistered trade marks and may also be used where the licence covers both.

Relationship with the Trade Mark Licence (Short Form)

The terms and conditions of this Trade Mark Royalty Agreement are substantially the same as those contained in the Trade Mark Licence (Short Form), which is also available from Simply-Docs.

Users of either document will not need to download the other.

Key Terms Covered by the Trade Mark Royalty Agreement

The agreement covers the main legal and commercial terms needed for a trade mark royalty licence, including:

• definitions and interpretation;
• grant and scope of rights;
• licensor and licensee rights and obligations;
• payment, royalties and records;
• licensor and licensee warranties;
• indemnity and limitation of liability;
• proceedings and confidentiality;
• term, termination and post-termination provisions; and
• notices, force majeure, no waiver, severance, law and jurisdiction.

The schedules cover the licensed trade mark or trade marks and the stated purposes for which they may be used.

Trade Mark Royalty Agreement is part of Business . Just £38.50 + VAT provides unlimited downloads from Business for 1 year.