How well do you know about Trademark Licensing? Assessing the pros & cons of it

Trademark Licensing is what we know as an agreement between the licensor, basically a registered trademark holder and the licensee, who earns a negotiated and agreed royalty for the use of licensor’s trademark.

The licensor and the licensee independently agree upon the terms to make use of the mark. Trademark ensures that the licensor gets the advantage and does not have to endure any foul play for allowing his or her mark to be used by the licensee. The marka tescil process is important for any intellectual property holder.

In order to understand the ins and outs of trademark licensing better below we have listed down the pros and cons that are involved with it. Continue to read till the end to understand the concept of trademark licensing.

Pros of Trademark Licensing

1.      Assess the experience of the other party

Just because a person is a registered trademark holder doesn’t mean the said person have the required skill, dedication or capital to exploit the property commercially. You may have one or two attributes; however, you may lack in taking the whole advantage from it.

However, with trademark licensing you can get assess to things which you may lack in yourself. The other party’s experience can help you earn the profits without you having to lose for it commercially. With an offered partnership between the licensor and licensee, you can make money out of it.

For instance, you don’t have the scope for manufacturing, however, with the party that can offer you the power and experience of manufacturing you can get the benefit out of your trademark. Plus, you don’t lose your credibility over the trademark as you and the other party have agreed upon trademark licensing.

2.     Sharing instead of taking all responsibility upon oneself

Let’s accept a hardcore fact, running a business comes along with a plethora of responsibilities. This means that a lot of the things lies upon your shoulder. However, sometimes it gets overwhelming to handle everything all upon oneself.

With trademark licensing you can partner up with a professional that can take some burden off your shoulder. However, that doesn’t mean you are relived from all the responsibilities completely. You are required to monitor the trademark usage and compliance with the agreed trademark licensing.

However, with a partner that have the same goals as yours, it becomes a lot more easy to take care of the responsibilities.

3.     Capability to reach new market

You may have the opportunity to reach a new market with your licensee’s pre-existing consumer reach and market. You will have the scope to expand your business with your partnership over trademark licensing.

Now we all know how much effort it requires to touch the new market base and with trademark licensing you can achieve that with ease.

Cons of Trademark Licensing

1.      Liability of disputes

A part of agreeing for trademark licensing comes along with accepting the responsibilities and risks of potential product liability disputes. Even though, the terms of liability is carefully drawn out on the agreement, eventually you have to give your full effort to rectify if any such scenario arises.

No matter what you include in the paperwork, you are never really completely off the limits when you are concerned for your trademark.

2.     Risk of Trademark loss

Trademark Licensing is not something that you just do it and never really think about it. In fact, you have to constantly monitor the terms and conditions of it and if the licensee following by the set agreement. For trademark licensing you have to be careful for choosing a reliable and trustworthy partner, monitoring your licensee’s use of trademark and outlining the terms & conditions by yourself upon the agreement.


So, what are you waiting for? Even though trademark licensing comes along with cons, we cannot ignore the pros that clearly outweighs the negatives of it. Hence, no matter how complicated the process of marka tescil sounds to you, getting a trademark and gaining the trademark license can give you many privileges.


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