trademark license agreementsAs we have explained on this site when we addressed the utility of license agreements in general, a trademark is a word, phrase, symbol, or design that signals to consumers the source of a good or service. While trademarks cannot be “baldly” licensed, meaning that they cannot be licensed to represent a good or service that differs markedly in quality from what consumers expect of goods or services labeled with that mark, trademark license agreements can allow for companies to earn additional revenue without incurring the costs of producing and distributing additional products.

For instance, Hewlett Packard (HP) has a trademark license agreement with Life Clips Inc. that allows Life Clips to use the HP brand and logo on its cameras, which are designed to compete with those made by Garmin, GoPro, Sony, and Nikon. The agreement is mutually beneficial in that HP receives additional revenue from the products designed and manufactured by Life Clips without incurring any additional costs itself. Life Clips’ use of the HP brand and logo, on the other hand, allows Life Clips to compete with the big brands that dominate the camera market, and sell its cameras at a higher price point.

Whether your company would like to license a patented technology, a copyright, or a trademark, as in the case of HP’s agreement with Life Clips, Your Contract Lawyer can assist you in assessing the terms of such an agreement, draft a new agreement, or revise an already existing agreement that may not reflect your goals or protect your interests.