Trademark Licensing is one of the most effective strategies for business expansion and brand monetization. This legal instrument allows a trademark owner (licensor) to permit another party (licensee) to use their brand, logo, or slogan in exchange for a fee (royalty), without transferring ownership rights. In Georgia, where the business sector is developing rapidly, trademark licensing is actively used in franchising, distribution, and merchandising. This process requires meticulously precise legal documentation, as an improperly drafted agreement can lead not only to financial loss but also to damaged brand reputation and even the loss of trademark rights (the risk of "Naked Licensing"). This service is designed for both brand owners wishing to generate revenue from their intellectual property and entrepreneurs wanting to operate under a well-known brand.
What Does Trademark Licensing Service Cover?
Qualified lawyers on Legal.ge offer comprehensive services covering all aspects of licensing:
- Drafting Licensing Agreements: Creating detailed contracts specifying the scope of use, territory, duration, and exclusivity terms.
- Developing Quality Control Mechanisms: Protecting the licensor's rights to ensure the licensee does not produce low-quality products under the brand name.
- Royalty Structuring: Defining the compensation model (flat fee, percentage of sales, or hybrid).
- License Registration at Sakpatenti: Registering the agreement with the National Intellectual Property Center, which is essential for validity against third parties.
- Franchise Agreements: Complex licensing that includes not just the mark but also the business model and know-how.
- Co-branding Agreements: Creating a legal framework for joint products featuring two brands.
Real-World Scenarios Where You Need This Service
Licensing is essential in the following types of business relationships:
- Opening a Franchise: You want to open a branch of a famous Georgian or foreign restaurant in your city. You need an agreement granting the right to use the brand.
- Apparel and Accessory Manufacturing: You are a designer and want to place your logo on bags produced by a partner factory (merchandising).
- Distribution: You are becoming the official distributor of a foreign brand in Georgia and need the right to use their trademark in marketing materials.
- Software White Labeling: You buy a license to sell a platform created by someone else under your own brand name.
- Brand Extension: A beverage company licenses its brand to an ice cream manufacturer to produce ice cream with the beverage's flavor and logo.
Georgian Legal Framework and Regulations
Trademark licensing is regulated by the Law of Georgia on Trademarks and the Civil Code of Georgia. According to the law, a licensing agreement must be in writing. It is particularly important that the agreement includes the licensor's right to control the quality of the licensee's goods; otherwise, the court may declare the license void or cancel the trademark on the grounds of misleading consumers. The law also distinguishes between exclusive and non-exclusive licenses. Registration of the license in the Sakpatenti registry is not mandatory for the agreement's validity between the parties but is critically important for proving rights against third parties (e.g., when fighting counterfeiting).
Service Process Step-by-Step
Working with a specialist during the licensing process involves the following stages:
- Audit and Strategy: The lawyer checks the trademark status (whether it is registered and valid) and plans the licensing structure.
- Negotiations (Term Sheet): Agreeing on key commercial terms (price, term, territory) with the other party.
- Drafting the Agreement: Preparing a detailed legal document that protects the parties' interests and complies with Georgian law.
- Defining Quality Control: Embedding mechanisms for how the brand owner will inspect the products.
- Registration: Submitting the licensing agreement or an extract to Sakpatenti for reflection in the registry.
Why Choose Legal.ge?
Legal.ge gives you access to the best intellectual property specialists in Georgia. Improper licensing can lead to the loss of your most valuable asset—your brand. Lawyers selected through our platform will help you conclude secure and profitable agreements, ensuring stable business growth and protection of your brand's reputation.
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