The Trademark Usage Agreement is essential for businesses looking to authorize third parties to use their trademarks in Hong Kong and potentially other territories. This document is particularly relevant when brand owners wish to maintain control over their intellectual property while allowing others to benefit from its commercial value. The agreement must comply with Hong Kong's Trade Marks Ordinance and related regulations, addressing key aspects such as quality control, permitted uses, and territorial scope. It's commonly used in licensing, franchising, and co-branding arrangements, providing detailed provisions for trademark usage, royalty structures, and protection mechanisms. The document typically includes comprehensive schedules covering specific usage guidelines, quality standards, and approval processes, ensuring proper brand protection while facilitating commercial exploitation of the trademark.
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1. Parties: Identification of the trademark owner (licensor) and the party being granted usage rights (licensee)
2. Background: Context of the agreement, including trademark ownership details and purpose of the usage arrangement
3. Definitions: Key terms used throughout the agreement, including specific trademark-related terminology
4. Grant of License: Scope of trademark usage rights being granted, including territory, exclusivity status, and permitted uses
5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination
6. Quality Control: Standards and requirements for trademark usage, including approval processes for marketing materials
7. Usage Guidelines: Specific rules for how the trademark must be displayed, including size, color, and positioning requirements
8. Fees and Royalties: Financial terms including licensing fees, royalty calculations, and payment schedules
9. Representations and Warranties: Statements regarding trademark ownership, validity, and authority to license
10. Protection and Enforcement: Obligations regarding trademark protection, infringement reporting, and enforcement actions
11. Confidentiality: Provisions for protecting confidential information exchanged during the agreement
12. General Provisions: Standard contract clauses including governing law, notices, and entire agreement provisions
1. Sublicensing Rights: Include when licensee may need to grant sublicenses to affiliates or third parties
2. Co-Branding Provisions: Include when the agreement involves combining trademarks with other brands
3. Marketing and Promotion: Include when specific marketing obligations or restrictions need to be detailed
4. Territory Expansion Rights: Include when providing options for expanding territorial scope of usage
5. Digital Usage Terms: Include when trademark usage extends to websites, apps, or social media
6. Product-Specific Requirements: Include when trademark usage is tied to specific products or services
7. Audit Rights: Include when licensor requires detailed audit provisions for quality or financial matters
8. Change of Control: Include when agreement needs to address corporate ownership changes
1. Schedule 1 - Licensed Trademarks: Detailed list of all trademarks covered by the agreement, including registration numbers
2. Schedule 2 - Trademark Usage Guidelines: Comprehensive brand guidelines including visual specifications and usage rules
3. Schedule 3 - Territory Definition: Detailed description of geographic areas where usage is permitted
4. Schedule 4 - Quality Control Standards: Specific quality requirements and approval procedures
5. Schedule 5 - Fee Schedule: Detailed breakdown of all fees, royalty rates, and payment terms
6. Schedule 6 - Approved Products/Services: List of specific products or services for which trademark usage is permitted
7. Appendix A - Approval Process: Flowchart and timeline for obtaining approval for trademark usage
8. Appendix B - Reporting Templates: Standard forms for usage reports and royalty calculations
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