Registration of Brand Licences in India

Trademark laws are governed by the Trade Marks Act 1999, which specifically states that all licenses for trademark use must spell out the exact relationship and permission that each user enjoys by virtue of the trademark’s ownership and the permitted use of the brands.. In the case that the owner decides to extend the right to use the registered trademark to any other party, it has to be stated in writing and must be registered with the Trade Marks Registry to reflect the jurisdiction. However, if the license agreement is not registered and the name of the permitted user is not recorded with the Trade Mark Registry, the benefits of the use of the mark/brands by the permitted user cannot be extended to the registered proprietor.

The information required in respect to above is to submit an affidavit which is mandatory in addition to Agreement, from an authorized representative of the Licensor detailing:

the relationship between the licensor and the licensee;
provisions to be made for the maintenance of quality control by the licensor along with finished product or services;
the description of the products and/or services for which the trademarks are proposed to be used;
the conditions and restrictions as in the license agreement regarding the use of the trademark and place of its proposed use, etc;
whether the trademark has been used prior to the application for registration of the subject license; and
an agreement should contain unambiguous termination provisions that clearly define which conduct constitutes a fundamental breach.

If the trademarks are pending registration, the above provisions are taken to be guidelines for such permission and accordingly a license agreement should be drafted to accommodate its record with the authorities.

In order to retain their strength and purity, it is pertinent that quality control measures are adopted and adhered to strictly in respect to the brands in accordance with; their permitted use.

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