Legal Basis for Licensing

• Trademark licensing is legally permitted under the Trade Marks Act, 1999.
  
• It allows the proprietor (licensor) to authorize another party (licensee) to use the registered or unregistered trademark.
  
• Licensing can be exclusive, non-exclusive, or limited by territory, duration, or product category.
  
• A licensed trademark must still comply with the Act’s requirements for validity and enforcement.
  

Types of Trademark Licenses

• Exclusive License – only the licensee is allowed to use the trademark; even the licensor is excluded.
  
• Non-Exclusive License – the licensee shares usage rights with the licensor and potentially other licensees.
  
• Sub-license – the licensee may further license the trademark if permitted by the licensor.
  
• Limited License – usage is restricted by geography, time period, goods/services, or other terms.
  

Procedure for Licensing

• Licensing is formalized through a written agreement, clearly outlining the rights and obligations of both parties.
  
• The agreement should include terms like duration, scope, quality control, fees, and termination.
  
• Registration of the license is not mandatory but highly recommended for legal enforceability.
  
• A license agreement can be recorded with the Registry by filing Form TM-M.
  

Documents Required

• A duly executed trademark license agreement signed by both parties.
  
• Power of Attorney (Form TM-48) if submitted through an agent.
  
• Proof of identity and address of the licensor and licensee.
  
• Details of the trademark including application number, class, and description.
  

Legal Effect and Protection

• The licensee obtains legal rights to use the trademark under agreed conditions.
  
• The licensor retains ownership and can enforce the trademark against infringers.
  
• Improper or unauthorized use can lead to termination of the license and legal action.
  
• Proper licensing helps in expanding market presence and monetizing brand value while maintaining control.