Shareholder Trade Mark Licence

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This document is a licence from a shareholder to a company for the use by the company of one or more trade marks owned by the shareholder. 

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Shareholder Trade Mark Licence

Trade mark licence from a shareholder to a company 


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.

About this document

This document is a licence from a shareholder to a company for the use by the company of one or more trade marks owned by the shareholder.

Document features: Shareholder Trade Mark Licence

Features include:

  • optional wording depending on whether the licence is exclusive or non-exclusive
  • optional wording depending on whether licence is royalty-free or the company will pay a royalty based on the percentage of its sales
  • restrictions on the use of the trade marks by the company
  • termination provisions, including the licensing shareholder ceasing to be a shareholder in the licensee company

paperrockdocs Shareholder Trade Mark LicenceExplanatory guidance

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