When might a shareholder licence the use of a trade mark to a company?

One of the shareholders in a company may own the trade mark which the company requires for its business. The shareholder may wish to retain the ownership of the trade mark and allow the company to use the trade mark in its business whilst the shareholder remains a shareholder in the company. The licence of the trade mark by the shareholder might be: exclusive or non-exclusive: if exclusive, the shareholder will not be permitted to allow other third parties to use the trade mark whilst the licence is in force limited to a particular territory royalty free or subject to payment of a royalty, for example a royalty of a specified percentage of the sales made by the company The licensing shareholder will want to retain control of the manner in which its trade mark is used by the company. The licensing shareholder may also want the licence to come to an end should it cease to be a shareholder in the company.

When do I use this bundle? For an investment transaction with a single investor in a private limited company What documents are included? term sheet for an investment for ordinary shares Investment term sheet: ordinary shares investment NDA NDA: investment (short) legal due diligence checklist Due diligence checklist: investment investment and shareholders agreement Investment and Shareholders Agreement: established business single investor Articles of association Articles of Association: established business single investor

Shareholder Trade Mark Licence

Name: Shareholder Trade Mark Licence - PaperRock Documents
SKU: SHA006.001
Price: 35.00 GBP
Availability: InStock

Trade mark licence from a shareholder to a company, for the grant of a licence to the company to use trade marks owned by the shareholder for the company’s business.

for a licence of trade marks from a shareholder to a company
for registered and/or unregistered trade marks
for a licensee company which is a private limited company incorporated in England and Wales

What are the key features?

17 clauses and one schedule over 11 pages
alternative wording depending on whether the licence is exclusive or non-exclusive
optional provisions for either a royalty-free licence or for payment of a royalty based on the percentage of sales
restrictions on the use of the trade marks by the company
termination rights for the licensor, including the licensor ceasing to be a shareholder in the licensee

What else do I need to know?

One of the shareholders in a company may own a trade mark which the company requires for its business.

The shareholder may want to retain the ownership of the trade mark but to allow the company to use the trade mark in its business whilst the shareholder remains a shareholder in the company.

The licence of the trade mark could be:

exclusive or non-exclusive: if exclusive, the shareholder will not be permitted to allow other third parties to use the trade mark whilst the licence is in force
limited to a particular territory
royalty free or subject to payment of a royalty, for example a royalty of a specified percentage of the sales made by the company

The licensing shareholder will want to retain control of the manner in which its trade mark is used by the company.

The licensing shareholder may also want the licence to come to an end should it cease to be a shareholder in the company.

Description

When do I use this bundle?

For an investment transaction with a single investor in a private limited company

What documents are included?

term sheet for an investment for ordinary shares Investment term sheet: ordinary shares
investment NDA NDA: investment (short)
legal due diligence checklist Due diligence checklist: investment
investment and shareholders agreement Investment and Shareholders Agreement: established business single investor
Articles of association Articles of Association: established business single investor

Explanatory Guides

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

£35.00 exc VAT

Updated by a lawyer on 21/07/2025

Updated By a lawyer on 03/13/2023

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Shareholder Trade Mark Licence