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Trademark License Agreement Between Parent And Subsidiary for Canada

Trademark License Agreement Between Parent And Subsidiary Template for Canada

A comprehensive legal agreement governed by Canadian law that establishes the terms and conditions under which a parent company licenses its trademarks to its subsidiary. The agreement ensures compliance with Canadian trademark law while maintaining the parent company's control over its intellectual property assets. It includes provisions for quality control, usage requirements, and reporting obligations, structured to comply with Canadian trademark regulations and tax considerations. The document addresses both federal requirements under the Canadian Trademarks Act and relevant provincial contract law principles.

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Trademark License Agreement Between Parent And Subsidiary

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What is a Trademark License Agreement Between Parent And Subsidiary?

A Trademark License Agreement Between Parent And Subsidiary is essential when a corporate group needs to formalize the use of trademarks within its organization structure in Canada. This document is typically used when a parent company wants to maintain control over its trademark portfolio while allowing its subsidiary to use these valuable assets in their business operations. The agreement should comply with Canadian federal and provincial laws, particularly the Trademarks Act and relevant corporate legislation. It includes critical provisions for quality control, usage parameters, and reporting requirements to maintain trademark validity. The document is particularly important for tax compliance, transfer pricing considerations, and maintaining proper corporate governance within the group structure. It should be reviewed periodically to ensure continued alignment with changing business needs and regulatory requirements.

What sections should be included in a Trademark License Agreement Between Parent And Subsidiary?

1. Parties: Identification of the parent company (Licensor) and subsidiary (Licensee), including full legal names and registration details

2. Background: Context of the agreement, establishing the parent-subsidiary relationship and ownership of the trademarks

3. Definitions: Detailed definitions of key terms including Licensed Marks, Territory, Field of Use, and Quality Standards

4. Grant of License: Scope of the trademark license, including territory, exclusivity, and field of use restrictions

5. Quality Control: Standards, inspection rights, and approval processes to maintain trademark validity

6. Usage Requirements: Specific requirements for trademark usage, including format, placement, and notices

7. Term and Termination: Duration of the agreement and circumstances for termination

8. Ownership and Goodwill: Confirmation of Licensor's ownership and assignment of goodwill

9. Royalties and Payment: Payment terms, even if nominal, for tax and transfer pricing purposes

10. Records and Reporting: Requirements for maintaining records and reporting on trademark usage

11. Governing Law: Specification of Canadian law as governing law and jurisdiction for disputes

What sections are optional to include in a Trademark License Agreement Between Parent And Subsidiary?

1. Sublicensing Rights: Include when the subsidiary may need to sublicense to its own subsidiaries or affiliates

2. International Usage: Include for cross-border trademark usage and international subsidiary operations

3. Marketing and Promotion: Include when specific marketing requirements or restrictions are needed

4. Change of Control: Include when specific provisions are needed for subsidiary ownership changes

5. Related Agreements: Include when coordinating with other intercompany agreements

6. Tax Indemnification: Include when specific tax allocation or indemnification is required

What schedules should be included in a Trademark License Agreement Between Parent And Subsidiary?

1. Schedule A - Licensed Marks: Detailed list of all licensed trademarks, including registration numbers and status

2. Schedule B - Quality Standards: Specific quality control requirements and standards for trademark usage

3. Schedule C - Territory: Detailed description of geographic territories where license applies

4. Schedule D - Usage Guidelines: Brand guidelines and specific requirements for trademark display

5. Schedule E - Royalty Calculations: Method for calculating and documenting any required royalty payments

6. Appendix 1 - Approval Procedures: Detailed procedures for obtaining approval for new uses of trademarks

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

User Agreement

Cost

Free to use
Relevant legal definitions
































Clauses






























Relevant Industries

Manufacturing

Retail

Technology

Financial Services

Healthcare

Consumer Goods

Professional Services

Media and Entertainment

Telecommunications

Hospitality

Food and Beverage

Relevant Teams

Legal

Intellectual Property

Brand Management

Corporate Affairs

Tax

Finance

Compliance

Marketing

Business Development

Relevant Roles

General Counsel

Intellectual Property Counsel

Corporate Lawyer

Brand Manager

Chief Legal Officer

Legal Director

Trademark Attorney

Corporate Secretary

Chief Executive Officer

Chief Financial Officer

Tax Director

Compliance Officer

Commercial Director

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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