Can I let someone else use my trademark?
You can permit someone else to use your trademark, but only if you control the character or quality of the products or services with which the other party (the “licensee”) uses the trademark. Typically, a license agreement is prepared to document both your rights as licensor and the rights and obligations of the licensee. Care must be taken in preparing and implementing a license agreement, because improper licensing can cause a loss of trademark rights.
Proper licensing is presumed if the product packaging, labeling or signage identifies the trademark owner and indicates that the trademark is used under license. But if the trademark owner does not actually control the licensee’s use of the trademark, the trademark’s distinctiveness may be diminished leading to a loss of trademark rights. In other words, even if you have a license agreement in place, if you do not actually take steps to ensure that the licensee is producing goods or providing services that meet your quality standards, you may harm your trademark rights.
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