The Trade Name License Agreement is essential for businesses operating in Germany who wish to authorize others to use their commercial trade names (Firma) in business operations. This document is particularly relevant when companies seek to expand their market presence through licensing arrangements while maintaining control over their trade name usage. The agreement must comply with German Commercial Code (HGB) requirements for trade name protection and usage, as well as general contract law principles under the German Civil Code (BGB). It becomes necessary when a trade name owner wants to monetize their commercial identity while ensuring proper quality control and brand protection. The document typically includes detailed provisions on permitted usage, territory restrictions, quality standards, fee structures, and compliance requirements specific to German commercial law.
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1. Parties: Identification of the licensor and licensee with full legal names and registered addresses
2. Background: Context of the agreement, confirmation of trade name ownership/rights, and purpose of the license
3. Definitions: Definitions of key terms used throughout the agreement, including 'Trade Name', 'Territory', and 'Licensed Activities'
4. Grant of License: Scope of the license, including territory, exclusivity/non-exclusivity, and permitted uses
5. Quality Control: Standards for trade name usage and licensor's right to monitor and approve use
6. License Fees: Financial terms including license fees, payment schedule, and reporting requirements
7. Duration and Termination: Term of the agreement, renewal provisions, and grounds for termination
8. Licensee Obligations: Specific duties of the licensee regarding trade name usage and compliance
9. Protection of the Trade Name: Provisions for maintaining and defending the trade name rights
10. Representations and Warranties: Standard warranties regarding ownership, right to license, and compliance with laws
11. Liability and Indemnification: Allocation of risks and responsibilities between parties
12. Confidentiality: Protection of confidential information exchanged during the agreement
13. General Provisions: Standard clauses including notices, assignment, governing law, and dispute resolution
1. Sublicensing Rights: Include when licensee is permitted to sublicense the trade name to third parties
2. Marketing and Promotion: Include when specific marketing requirements or restrictions apply
3. Territory Expansion Rights: Include when licensee has rights to expand into additional territories
4. Change of Control: Include when agreement needs specific provisions for corporate ownership changes
5. Exit Rights: Include when early termination options are granted to either party
6. Competition Restrictions: Include when parties agree to non-compete provisions
7. Data Protection: Include when personal data processing is involved in the license activities
1. Schedule 1 - Trade Name Specifications: Detailed description of the trade name, including registration details and visual representation
2. Schedule 2 - Licensed Activities: Comprehensive list of permitted activities under the license
3. Schedule 3 - Quality Control Standards: Detailed quality control requirements and approval procedures
4. Schedule 4 - Fee Schedule: Detailed breakdown of all fees, including calculation methods and payment terms
5. Schedule 5 - Approved Form of Trade Name Use: Visual guidelines and examples of approved trade name usage
6. Schedule 6 - Reporting Requirements: Templates and procedures for required periodic reports
7. Appendix A - Territory Definition: Detailed description or maps of licensed territory
8. Appendix B - Compliance Requirements: Specific legal and regulatory requirements for trade name use in the territory
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