Trademark license granting is when the owner of a registered logo or brand – thus trademark provides the right to usage or trading to other parties. The owner granting the usage through a trademark license agreement may wish to do so for the purpose of expanding business, doing marketing or gaining financial benefits from the commercial exploitation of his trademark.
A person or company may thus approach the owner for a trademark license agreement which may be subject to annual renewal of the agreement or which there may be certain conditions such as geographical limitations, association, payment of royalties, usage only under specific circumstances or for specific products.
Such a trademark license agreement should not be taken lightly, as the terms and conditions must be spelled out in a clear and concise manner without contrasting rights provided.
It is recommended that you approach the attorneys of Smit & Van Wyk for assistance in setting up trademark license agreements.