Termination and right of appeal – This provision is contained in a licence to encourage parties to cooperate in the settlement of small disputes arising from the agreement. In the event of an infringement, the defaulting party will have the opportunity to remedy this deficiency within a specified period of time. If the defaulting party continues to violate the agreement, the uninjured party has the right to terminate the contract. Compensation – A common form of compensation is a levy based on the percentage of net sales. The licensee can even check the activity of the taker to verify that the licensee is properly compensated. This can be defined in a registration and monitoring clause. The licensee may also wish for some form of assurance that the policyholder will do his best to exploit the licensed brands. This may take the form of a “Best Efforts” clause or there may be a minimum royalty charge. Definitions – There is often a definition section (keywords are defined in the agreement). The Law recognizes a number of ways to make businesses and individuals responsible for induction or contribution to counterfeiting of an online trademark other than branded debt. The geographical scope of a trademark licensing agreement is another important element of a trademark licensing agreement since a licensee can license multiple takers, so it is important that the licensing agreement clearly defines the geographic areas in which the licensee can use the trademark. For example, a licensee may grant trademark rights to different takers based on the continent, state or city in which it is located. This is particularly often the case in franchising agreements, as there may be several overlapping licensees in the same area.
Therefore, the trademark licensing agreement must indicate whether the license is exclusive or not exclusive to the taker and whether the licensee can sublicensing one of the rights granted by the licensee. Other key concepts include definitions, geographic scope, licence requirement/duration, royalty rate and contract terms and conditions; and the definitions common to most commercial contracts are also an important part of the complexity of trademark licensing agreements.