Brand License | Quality Control | Enforcement | Multi-Jurisdictional | Royalties
This Trademark Usage Agreement effective [Date] between [Licensor/Brand Owner] and [Licensee] grants limited non-exclusive license to use trademark [Trademark Name] (registration [Numbers]) for [Products/Services]. Legal Framework: Markengesetz (MarkenG) 1994 (German Trademark Act), 15 USC §1127 (Lanham Act - US), EUTR 2017/1001 (EU Trademark Regulation), Madrid Protocol (International Registration).
1.1 Licensor's Ownership (MANDATORY DECLARATION): Per MarkenG §5 (Registered Rights) & 15 USC §1121 (Federal Registration):
• Licensor owns registered trademark: [Name] (Registration #: [____])
• Registered in: ☐ Germany (DPMA) ☐ Europe (EUIPO) ☐ US (USPTO) ☐ International (WIPO)
• Licensor has full authority to license per 15 USC §1127
1.2 License Grant (LIMITED & NON-EXCLUSIVE): Per MarkenG §30 (Rights conferred by registration):
• Licensor grants Licensee NON-EXCLUSIVE (not exclusive) license to use [Trademark]
• Territory: [Germany / EU / Worldwide]
• Products/Services: [NICE Class: specify exactly]
• Duration: [X years] from [Date] per MarkenG §47 (Duration of protection)
1.3 STRICT RESTRICTIONS (CRITICAL): Per MarkenG §30 & 15 USC §1127:
✗ Licensee CANNOT modify, alter, or distort trademark per 15 USC §1127(c)
✗ Licensee CANNOT sublicense without written consent per MarkenG §30(2)
✗ Licensee CANNOT use beyond specified territory/goods
✗ Licensee CANNOT register confusingly similar marks per 15 USC §1052 (Likelihood of Confusion)
2.1 Quality Control Requirement (LEGAL MANDATE): Per MarkenG §97 (Licence Agreement) & 15 USC §1055 (Naked License Doctrine):
CRITICAL: Without quality control, trademark becomes unenforceable ("naked license" = loss of rights) per 15 USC §1127
• Licensor MUST exercise quality control over goods/services per MarkenG §97(1)
• Licensee must comply with Brand Guidelines (Schedule A attached)
• Brand Guidelines include: Logo usage, color specifications, fonts, placement, quality standards
2.2 Compliance & Audit Rights: Per MarkenG §97(3):
• Licensor may audit Licensee quarterly per [Q1, Q2, Q3, Q4]
• Licensee shall provide samples of all uses (packaging, advertising, products) within 10 business days
• Material breach of Brand Guidelines = grounds for suspension/termination per MarkenG §97
• Licensor retains right to inspect facilities per 15 USC §1055(c)
3.1 Royalty Structure (PAYMENT OBLIGATION): Per BGB §433 (Service Contract):
☐ Upfront Fee: EUR [X,XXX]
☐ Running Royalty: [X%] of Net Sales per quarter per [Net 30 days]
☐ Minimum Annual Royalty: EUR [X,XXX] (or quarterly equivalent)
• "Net Sales" = Gross revenue less: returns, discounts, freight, taxes (defined in Schedule B)
3.2 Reporting & Payment Terms:
• Quarterly royalty statements: Due within 30 days end of quarter per BGB §280 (Duty of performance)
• Late payment interest: [1.5% / 2% monthly] per German Late Payment Act (UStG)
• Audit right: Licensor may audit books (max once per year) per BGB §284
4.1 Trademark Maintenance: Per MarkenG §47 (Renewal) & 15 USC §1059 (Renewal - US):
• Licensor responsible for maintaining registration (renewal every 10 years)
• Licensor shall file renewal applications within deadlines (no lapse allowed)
• Licensor bears costs of registration maintenance per MarkenG §47
4.2 Enforcement Against Infringement: Per 15 USC §1114 (Infringement):
• Licensor may sue infringers per 15 USC §1114(1)
• Licensor shall notify Licensee of infringement claims
• Licensee shall cooperate in enforcement (provide evidence, witness testimony)
• Recovery of damages benefits Licensor (not Licensee)
5.1 Grounds for Termination (WITH CAUSE): Per BGB §623 (Termination):
Licensor may terminate for:
✗ Quality breach (non-compliance with Brand Guidelines per MarkenG §97)
✗ Non-payment of royalties (>30 days late) per BGB §280
✗ Unauthorized sublicensing per MarkenG §30(2)
✗ Trademark violation / genericide risk per 15 USC §1064 (Abandonment)
5.2 Post-Termination (CEASE OF USE - MANDATORY):
• Licensee shall IMMEDIATELY cease all use of trademark per MarkenG §97
• Licensee shall destroy all materials (packaging, advertising, inventory) within [30 days]
• Licensee may sell existing inventory ONLY with prior written approval (clearly marked "discontinued")
• No winding-down period unless expressly agreed per 15 USC §1127(b)
Applicable Law: ☐ German (MarkenG) ☐ US [State] | Jurisdiction: DIS Arbitration (German/International) or [Courts of ____] per 28 USC §1338 (Federal Jurisdiction)
Licensor: ____________ | Licensee: ____________ | Date: [Date]