Protecting Your Company's Intellectual Property: A Practical Guide to Trademarks, Copyrights, Patents & Trade Secrets

Licensing of Trademarks

Rather than selling a mark outright to another, a trademark owner can license the right to use a mark to another and continue to retain ownership of the mark. Trademark licensing arrangements are routinely seen in franchise agreements in which a franchisor, such as Burger King, allows its franchisees to use Burger King's marks. The licensor may grant an exclusive license, in which case the mark can be used only by the licensee, or a nonexclusive license, as is the case with franchise agreements, by which several parties have the right to use the licensor's marks. The licensor may retain rights to use the mark or may agree not to use the mark while the license is in effect. The licensor is paid a one-time lump sum license ...