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Trademark Licensing: How to Profit from Your Registered Trademark in India

Trademarks are a crucial aspect of any business as they allow the owner to protect their brand identity, prevent infringement, and gain customer loyalty. Once a trademark is registered with the Indian Trademark Office, it can be used to license others to use it for their business purposes. This can be a lucrative opportunity for trademark owners to earn additional revenue through licensing agreements. In this blog post, we will discuss the basics of trademark licensing in India and how to profit from it.


What is Trademark Licensing?


Trademark licensing refers to the process of allowing a third party to use your trademark for their commercial purposes. The owner of the trademark, known as the licensor, grants permission to another party, known as the licensee, to use their trademark in exchange for a fee. The licensor maintains ownership of the trademark and can specify the terms and conditions of the license agreement.


Types of Trademark Licenses


There are various types of trademark licenses that can be granted to a licensee. The most common types of licenses are:

  1. Exclusive License: This type of license grants the licensee exclusive rights to use the trademark in a particular geographical area or for a specific product or service.

  2. Non-Exclusive License: This type of license allows the licensee to use the trademark alongside other licensees.

  3. Sole License: This type of license grants the licensee the sole right to use the trademark for a specific product or service.


Trademark Licensing
Trademark Licensing: How to Profit from Your Registered Trademark in India

Benefits of Trademark Licensing

  1. Additional Revenue: Licensing your trademark can provide an additional stream of revenue for your business. This can be particularly beneficial for small businesses that may not have the resources to expand their operations.

  2. Brand Exposure: Licensing your trademark can increase your brand exposure as it allows other businesses to use your trademark in their marketing and advertising campaigns.

  3. Risk Mitigation: Licensing your trademark to other businesses can reduce the risk of infringement as the licensee is bound by the terms and conditions of the license agreement.

Trademark Licensing in India


In India, trademark licensing is governed by the Trademarks Act, 1999. The act provides for the registration of trademark licenses with the Indian Trademark Office. A trademark license agreement must be in writing and must specify the terms and conditions of the license, including the scope of use, the duration of the license, the royalty fees, and any restrictions on the use of the trademark.

The trademark license agreement must be signed by both the licensor and the licensee, and a copy of the agreement must be filed with the Indian Trademark Office. The registration of the license agreement is not mandatory but it provides legal protection to both the licensor and the licensee in case of disputes.


Trademark licensing can be a profitable opportunity for trademark owners to expand their business and earn additional revenue. In India, trademark licensing is governed by the Trademarks Act, 1999 and requires a written agreement that specifies the terms and conditions of the license. As a trademark owner, it is important to carefully consider the terms and conditions of the license agreement to ensure that your trademark is used appropriately and to protect your brand identit

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