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Replace Circle into the Trademark License Agreement

Replace Circle into the Trademark License Agreement

Aug 6th, 2022

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

What is the difference between a trademark and a license?

A trademark is any name, sign, symbol, logo, colour, sound, or thing that distinguishes or identifies the source of a product (goods or services) from that of a competitor. [ii] On the other hand, a licence is the permission to do something which would otherwise be unlawful.

What is the difference in the treatment of trademark license agreements in the US versus foreign countries?

In the United States, there is no requirement that a license agreement be recorded with the USPTO. However, other countries may require a licensor to record the license for it to be effective against third parties.

What are typical licensing royalty rates?

Royalty rates are typically 5-10% of a retail price, or 15-20% of a wholesale price. However, these are usually subject to agreement. An advance payment of 25% is often used for higher value licenses.

What is the royalty rate for trademark licensing?

A trademark royalty rate is usually a percentage of sales generated from the use of the trademark for example, 5% of gross or net revenue, paid quarterly.

What is a trademark license agreement?

A trademark license agreement allows the licensee to use (but not own) the licensors trademark in connection with agreed-on products or services. Licensing can help a company expand into new markets effectively and easily while lending the licensee an established name and reputation.

What is a reasonable royalty rate for a trademark?

Patent or trademark owners use the 25% rule as a yardstick for defining a reasonable amount of royalty payments.

How do you calculate trademark royalties?

Arithmetically, royalty (on sales) can be expressed as: Royalty = Payment-to-licensor/Product-sales-price.

How do you calculate royalty rate for licensing?

The base formula for royalty calculation is royalty revenue = sales x royalty percentage.

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