For trade mark owners, there are many benefits to trade mark licensing.  Not only are there financial gains, but licensing agreements can build brand exposure and heighten the reputation of the existing business.

However trade mark licensing is more than a matter of signing off and sitting back to reap the rewards. As recent judicial commentary has indicated, parties to these kinds of commercial transactions need to be acutely aware of what is really required of the licensor to ensure an effective licensing arrangement exists which maintains the validity of the trade marks under license. With a Full Federal Court appeal on this issue expected shortly, this is a timely reminder that in the future a strong license regime is likely to not only require that there be theoretical control mechanisms over trade mark use in place, but that these mechanisms also be exercised in practice.

If you would like more information about ensuring a strong trade mark licensing regime which will not impact the validity of your registered rights, or trade mark protection more generally, please contact our Trade Marks Team.

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