A Trade Name License Agreement is a crucial legal document used when a business owner wishes to permit another party to use their trade name while maintaining control over its usage. This agreement is particularly important in Hong Kong's dynamic commercial environment, where brand protection and proper licensing are essential for business success. The document establishes the framework for legal use of the trade name, including territorial scope, quality standards, payment terms, and compliance requirements under Hong Kong law. It's commonly used in business expansions, franchising arrangements, or strategic partnerships where brand identity needs to be carefully controlled and protected. The agreement ensures compliance with Hong Kong's Trade Marks Ordinance and related intellectual property legislation while providing clear guidelines for both parties' rights and obligations.
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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 ownership of the trade name, and purpose of the license
3. Definitions: Definitions of key terms used throughout the agreement, including 'Trade Name', 'Territory', 'Effective Date', etc.
4. Grant of License: Specific rights being granted, including scope, territory, and any restrictions on use
5. Term and Renewal: Duration of the license and conditions for renewal
6. License Fees and Payment Terms: Financial terms, including license fees, payment schedule, and reporting requirements
7. Quality Control: Standards for use of the trade name and licensor's right to monitor and inspect
8. Protection of Trade Name: Obligations regarding protection and enforcement of trade name rights
9. Representations and Warranties: Statements of fact and promises by both parties
10. Infringement: Procedures for dealing with third-party infringement and cooperation between parties
11. Termination: Grounds for termination, notice requirements, and consequences of termination
12. Post-Termination Obligations: Obligations of parties after agreement ends, including cessation of use
13. Governing Law and Jurisdiction: Specification of Hong Kong law and jurisdiction
14. General Provisions: Standard boilerplate clauses including notices, entire agreement, and amendments
1. Sub-licensing Rights: Include when licensee is permitted to sub-license the trade name to others
2. Marketing and Promotion: Include when specific requirements for marketing and promoting the trade name are needed
3. Minimum Performance Requirements: Include when licensee must meet specific performance targets
4. Export Restrictions: Include when there are restrictions on using the trade name in other territories
5. Insurance Requirements: Include when specific insurance coverage is required for the licensee
6. Non-Competition: Include when restricting licensee's involvement with competing businesses
7. Change of Control: Include when agreement needs to address changes in ownership of either party
1. Schedule 1 - Trade Name Specifications: Detailed description of the trade name, including any associated logos or marks
2. Schedule 2 - Territory: Detailed description of geographic areas where license is valid
3. Schedule 3 - Quality Control Standards: Detailed quality control requirements and procedures
4. Schedule 4 - Fee Structure: Detailed breakdown of all fees, royalties, and payment terms
5. Schedule 5 - Approved Usage Guidelines: Specific guidelines for how the trade name may be used, including format and placement
6. Schedule 6 - Reporting Requirements: Templates and procedures for required periodic reports
7. Appendix A - Prior Rights: List of any existing licenses or rights that may affect this agreement
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