Trademark License Agreement
Lets a brand owner (licensor) grant another party (licensee) the right to use a trademark under quality-control terms that protect the mark and keep it out of the 'naked license' trap.
What is a Trademark License Agreement?
A Trademark License Agreement is the agreement that lets a brand owner (licensor) grant another party (licensee) the right to use a trademark under quality-control terms that protect the mark and keep it out of the 'naked license' trap.
Built for brand owners licensing their mark to partners, franchisees, manufacturers, or merch makers, and for companies licensing a mark in.
Trademark License Agreement template, current for 2026
The form centers the quality-control obligations that prevent a 'naked license' from invalidating the mark, and adds current brand-usage and digital-guideline compliance, social and app-store usage terms, controls on AI-generated brand content, exclusivity, territory, and field-of-use structuring, and clean royalty and audit mechanics in plain language.
How HDAi does this differently
Unlike a static form, HDAi runs a guided interview and assembles your Trademark License Agreement as you answer. When you want it finished, a licensed Hart David Carson attorney reviews it and tailors it to your facts before you sign. The interview and the first draft are automated. The judgment belongs to an attorney.
What you’ll be asked
- Who is the trademark owner granting the license (Licensor)? This is the brand owner who owns the mark and must control its quality. Include legal name, entity type, and jurisdiction of formation.
- Who is receiving the right to use the mark (Licensee)? The party permitted to use the mark on goods or services under this agreement. Include legal name, entity type, and jurisdiction.
- What is the effective date of this Agreement? The date the license and all obligations begin. Used to calculate the term and renewal windows.
- Which U.S. state's law governs this Agreement? Trademark quality-control and licensing disputes are read against state contract law plus federal Lanham Act principles. Pick the state whose courts you want to hear disputes.
- In what city and county will disputes be litigated or arbitrated? Sets the exclusive forum so neither party is dragged across the country. Should align with the governing-law state.
- List the licensed trademark(s), including any registration numbers and the exact word/design. Defines precisely what is licensed. Vague mark descriptions invite disputes and weaken enforcement. List each mark, its form (word/logo), and USPTO reg. no. or 'application/common-law' status.
- On what goods and/or services may the Licensee use the mark? The 'Licensed Products/Services' scope. A license is only valid for the specific goods/services it covers; anything outside is infringement. Be specific.
- Are the Licensed Marks limited to a specific field of use or channel of trade? Optional. Narrows the license to a defined market segment or sales channel (for example, direct-to-consumer online only, or a specific product category). Leave blank for no channel restriction other than the goods/services listed above.
- What is the geographic scope of the license? Defines where the Licensee may use the mark. Broader than the Licensor's actual/registered use can create abandonment or quality-control gaps.
- Specify the exact states, regions, or countries covered. List the precise geographic area so the Licensee cannot expand use silently.
- Is the license exclusive, sole, or non-exclusive? Under an exclusive license only the Licensee may use the mark in the field and territory (even the Licensor is excluded). A sole license is limited to the Licensor and the Licensee. A non-exclusive license lets the Licensor license others too.
- May the Licensee grant sublicenses? Sublicensing multiplies quality-control risk. If allowed, the Licensor's control must flow down to every sublicensee or the license risks becoming 'naked.'
- Does the license cover digital assets such as domain names and social-media handles incorporating the Marks? Brand licenses today should decide who owns domains, URLs, and social handles that contain the mark. The usual position is that any such asset is held for the Licensor and transferred back on termination, which stops a departing Licensee from squatting on brand handles.
- May the Licensee use the Marks in AI-generated or synthetic media, or to train AI models? Generative AI raises new brand-control and quality risks. The safer course is to prohibit AI or synthetic use of the mark and any model training on the mark absent written approval. Approved content still must meet the Quality Standards, and its goodwill inures to the Licensor.
- Is there a brand or quality guide/exhibit the Licensee must follow? Attaching brand guidelines (as Exhibit B) and giving the Licensor a mechanism to update them is strong evidence of genuine quality control and keeps digital/social usage current.
- How is the Licensee compensated to the Licensor? Determines the payment mechanics. Royalties tie compensation to sales, flat or upfront fees are simpler, and a combination is common.
- What is the upfront/initial fee (USD)? A one-time payment due at signing. Sets the entry cost of the license.
- What is the royalty rate (percentage of Net Sales)? The percentage of Net Sales the Licensee pays. Enter the number only (e.g., 6 for 6%).
- What is the annual minimum royalty/guarantee (USD), if any? A floor that protects the Licensor if the Licensee underperforms. Enter 0 if none.
- How often are royalties reported and paid? Sets the reporting/payment cadence and audit rhythm.
- What is the initial term of the license? How long the license runs before it ends or renews. Trademark licenses often run in multi-year terms tied to the brand relationship.
- Does the term automatically renew? Auto-renewal keeps the license alive absent notice; otherwise it expires at the end of the term. Affects planning and exit.
- Describe the quality standards the Licensee must meet. This clause is what prevents a 'naked license.' Without meaningful, enforced quality control, courts can find the mark abandoned. Describe the standards and specs, or reference an attached brand or quality manual.
- Must the Licensee submit samples/uses for the Licensor's pre-approval? Pre-market approval of samples and marketing is the strongest evidence of real quality control. We recommend it to defeat the naked-license risk.
- May the Licensor inspect the Licensee's operations/facilities? Inspection and audit rights let the Licensor verify quality in practice, reinforcing genuine control over the mark.
- Will the Licensee indemnify the Licensor for product/liability claims? Because the Licensee makes and sells the goods, it should bear product-liability and misuse risk and carry insurance protecting the Licensor.
- What minimum commercial general liability insurance must the Licensee carry (USD per occurrence)? Sets the coverage floor protecting the Licensor from product claims. Enter 0 to omit a specific figure.
- Confirm that all goodwill from the Licensee's use inures to the Licensor. Standard and essential. Everything the Licensee builds under the mark belongs to the Licensor, which preserves ownership and is expected in every trademark license.
- How should disputes be resolved? Choose litigation in a chosen court, or binding arbitration. Either path keeps a carve-out so the Licensor can still go to court for urgent injunctive relief to protect the Marks.
- Which arbitration forum and rules apply? Selects the administering body and its rules. The seat of arbitration is the venue city you entered above.
- What email/address should formal notices go to (both parties)? Notices of breach, termination, and approvals must reach the right person. You can refine per-party in the signature block.
Frequently asked
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