A Trademark licensing is a mechanism where the Trade owner (Licensor) grants permission to a Third
Party (Licensee) to use the invention (Trademark) on mutually agreed terms and conditions.
THERE ARE DIFFERNET TYPES OF TRADEMARK LICENSING
- FRANCHISING: this is a type of licensing where the franchisor (trademark owner) licensee the invention to the franchisee (third party) to use the invention for the business purpose, in return for a fee. The license is followed by a bundle of IP rights.
For example: the pizza corner Pizza Hut
- BRAND EXTENSION: it is a process where a company gets in touch with the owner of the Trademark or its agent; in order to expand its business earning the monopoly right, through a legitimate license agreement.
For example: Monaco Coach entered into a license agreement with Dodge, in order to use Dodge Trademark and logo, in the manufacture of luxury recreational vehicles.
- COMPONENT OR INGREDIENT BRANDING: the owner may license the component or an ingredient of the Trademark, thus attracting the consumer toward the product of the licensee.
For example: Diet soft drinks with Nutra Sweet.
- CO-BRANDING: number of companies joining together in order to make a new product, contributing the best of their products or inventions.
For e.g.: production of Lexus car under the interest of Toyota and Coach.