Trademark Licensing Agreements in France – Content and Clauses
Trademark holders can choose to entrust the exploitation of their trademark to a third party. Such system can be necessary in several contexts :
- Internal organization : a holding company holds the trademark and a second company is tasked with developing it commercially,
- Franchising agreement : franchiser holds the trademark and franchisee uses it,
- Externalized production : the trademark holder designs the products and owns it, while the third-party producer manufactures the products and resells it.
Licensing agreements can be advantageous for holders as it allows them to focus on macro strategy and leave the commercial development to another party.
Trademark licensing agreements detail the manner in which the trademark is used by the licensee, such as the extent of the conceded rights as well as the licensing fee.
It protects the trademark holder as the licensee understands the limit of its rights and the licensor has options to secure its IP investment.
Trademark agreements are preferably formalized in writing, for purposes of proof and third-party opposability.