One of the most important concepts is quality control to protect the goodwill of trademark rights; The duration and right to terminate the terms of a trademark licensing agreement are also important, as they give the licensee the opportunity to license the mark for a short period of time to determine whether the commercial relationship is profitable enough to extend for a new term. Similarly, the right to terminate the contract is important to the licensee, as it allows the licensor to terminate the contract immediately after the dementer of the taker or for other offences. In this way, the brand owner can stop the erosion of brand value if a taker does not meet the quality standards that consumers expect from the original supplier of brand-related goods or services. Brand licensing agreements are very different in length and subtleties. Although many licenses have a similar structure, each license contains different details and clauses based on the products or services granted. While it is more common to license brands as service marks, licensing agreements may include products or services. In addition, licensing agreements are often federally registered trademarks, but unregistered trademarks may also be licenses. As far as registration is concerned, some countries retain the legal obligation to cover licensing agreements. The United States does not require a trademark license from the United States Patent trademark Office.
Definitions – There is often a definition section (keywords are defined in the 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. The geographical scope of a trademark licensing agreement is another important element of a trademark licensing agreement since a licensee can license multiple takers, so it is important that the licensing agreement clearly defines the geographic areas in which the licensee can use the trademark. For example, a licensee may grant trademark rights to different takers based on the continent, state or city in which it is located.