Trademark licensing is the process of permitting a presumed owner or licensee to access a registered trademark in association with specific products, services, or terrestrial regions. The licensee usually provides a royalty amount or a licensing fee for accessing the trademark. The licensor owns the trademark while the licensee acquires the right to exploit the reputation of the trademark.

Here are the different types of trademark licensing that are mentioned below –

• Exclusive License: The licensor grants the exclusive right to use the trademark to the licensee within a specified market or territory, i.e., even the licensor is not allowed to use the trademark in that region. This form is prevalent in franchise or distribution contracts.
• Non-Exclusive License: The licensor grants permission to several licensees to use the trademark at the same time. This is mostly applied when a brand desires to have maximum presence in the market without restraining usage.
• Franchise Licensing: A form of exclusive licensing in which the franchisee (licensee) is conferred the privilege of conducting a business under the brand and business framework of the franchisor. The category encompasses not just the trademark but also the entire brand system.
• Sub-Licensing: The licensee can have the right (subject to being allowed in the license agreement) to sub-grant some of its rights to third parties. This form needs to be strictly monitored to ensure brand standards.
• Cross-Licensing: There is an exchange of licenses by two or more parties so that each can utilize the other’s trademarks. It is prevalent where there is a strategic partnership and joint brand benefits
  expected.

Licensing of a trademark facilitates several benefits to the owner and presumed owner of the trademark.

• Revenue Generation: Licensing of a trademark acts as an additional source of revenue for the original owner
  through different licensing fees and royalties beyond the need for the owner to invest directly in the markets.
• Market Expansion: Partnering with local presumed owners or licensees, it is easier for brands to enter into new markets, boost regional reach, and gain a recognized brand visibility.

• Risk Reduction: The responsibility of managing local marketing, production, and distribution of products are held by the presumed owner, which reduces the direct operational risks of the owner and its other investment requirements.

• Brand Robustness: An effectively managed licensing program enhances the image of the brand as it ensures steady quality and standards for all products and services.
• Cost Efficiency: Using the established distribution channels and market skills of the presumed owner results in more cost-effectiveness than preparing operations individually.

Here is the detailed way of licensing a trademark in India –

• According to Section 49 of the Trademark Act, 1999, it is compulsory for the licensed user of a trademark to register his trademark under the Indian Trademark Registry.
• To register a licensed trademark, a combined application should be filed with the Registrar by the trademark owner or proprietor and the presumed owner of the trademark using the TM-U form at the IPIndia portal.
• The form should include relevant documents that are required for the registration of trademark license, such as: -1. A photocopy of the Trademark License Agreement. 2. An affidavit by the Registered owner of the Trademark that defines the terms of agreement, its scope of goods  or services, time  duration, and any other restrictions for accessing it enforced by the agreement.
• After the final submission of the form, it is reviewed by the Trademark Registry Office. If the details are correct, the Registry Office registers the presumed user as the “Registered User”of the trademark.