A trademark license has its own special set of issues. A large measure of the value of a trademark consists of its “goodwill,” i.e., the reputation for quality held by the source of the goods and services sold under the mark.
A trademark owner can directly establish and control that goodwill as the mark is used in connection with the owner’s goods and services. In the context of a license, however, a licensee is the one selling the goods and services bearing the owner’s mark. A trademark owner must protect the goodwill associated with the mark. Therefore, proper trademark licensing must address critical issues including quality control, avoidance of confusion, and the goodwill in the mark inuring to the benefit of the trademark owner.
McHale | Slavin has extensive experience in the preparation and negotiation of trademark licenses. Contact us for additional information or to schedule a consultation.
