With the Merchandising Contract, the owner of a trademark (merchandisor or licensor) allows another subject (merchandisee or licensee) to use his distinctive sign in a particular market or product sector.
With merchandising, the trademark owner economically exploits the distinctive sign. In particular, it increases the visibility of your brand and can make a profit for its use. In turn, the licensee takes advantage of the prestige or reputation of the brand by using it in their products or services.
The merchandising contract governs the duration, the territory of validity and the market in which the licensee can use the brand. Furthermore, a fixed or variable fee may also be provided for in the contract (eg royalties on sales).
When using the merchandising contract
Merchandising is used to grant the use of a trademark for entire product sectors or for a single product or service. For example, a comic book publisher may license the brand for an entire industry such as toys or clothing. Alternatively, the same trademark can only be granted for the production of a particular object (eg smartphone cover).
Furthermore, the merchandising contract can be used for both registered and unregistered trademarks. For example, the licensee may use the contract for a trademark being registered.
With the merchandising contract, it is possible to grant exclusive or non-exclusive use of the brand. In the first case, the trademark owner cannot enter into merchandising contracts with parties other than the licensee. In the second case, however, it will be possible to enter into agreements with other licensees.
The merchandising contract must not be confused with the contract for the assignment of a trademark or assignment of intellectual property. With the assignment, the owner transfers the intellectual property, such as a trademark, to a buyer. With the merchandising contract, however, only a license for use is granted, without transferring ownership.
Sports merchandising contract
With the sports merchandising contract it is possible to grant the commercial use of your sports brand to produce branded products. In this way, sports clubs can count on fixed or variable earnings based on the sales of the products created by the merchandisee (licensee). For example, Formula 1 teams or football teams grant their brands to distinguish gadgets, articles of clothing, toys, etc.
Merchandising represents an opportunity for the sports trade sector. It is both a potential source of revenue and resources for sports clubs and a channel that allows for a lot of visibility.
What’s in the merchandising contract template
Our merchandising agreement meets all legal requirements. The main clauses included concerns:
- Object: the indication of the trademark or intellectual property that is granted for use
- Limits of use: for which markets, products or services the merchandising is foreseen
- Territory: Merchandising can be limited to a specific territory
- Exclusive: the possibility of granting the intellectual property exclusively to a single licensee
- Fee: possibility to grant the use of the trademark free of charge or for a fee (fixed remuneration or royalties on sales). Furthermore, it is possible to agree on a minimum royalty, to be paid regardless of the volume of sales achieved
- Duration: it is possible to choose between a contract with no expiry date, with the possibility of withdrawal, or a contract with a fixed duration
- Obligations of the licensee: the quality standards linked to the brand must be respected, the prestige of the owner must not be damaged, etc.
- Licensor checks and controls: the possibility for the owner to inspect the licensee’s operations in the production of goods or services bearing the trademark
- Brand protection: the behavior that the parties must adopt in the event of counterfeiting and the forms of collaboration between the parties
- Cessation of the use of the trademark: you can choose how soon after the termination of the contract it will be mandatory to stop using the trademark, eliminating the related products from the market
- Language: the contract can be created in English as needed (e.g. it is an international brand with foreign partners)
Once you have downloaded your document, we will guide you step by step to complete all the necessary subsequent tasks.
Information you need
To complete the document, all the data of the parties and the identification data of the brand or logo are required.
The document can be modified in all its parts without time limits. Don’t worry so if you don’t have all the information available during the interview, you can always enter it later.
Remember that our interview does not generate a simple facsimile of a merchandising contract. Based on your answers, the system automatically draws up a customized contract model for your exact needs, guaranteeing its legal correctness.
- Merchandising of the logo, brand, symbol, distinctive sign
- Sports merchandising contract
- Trademark use license
- Trademark Use Agreement
- Brand rental agreement
- User License Agreement: to use any intellectual property right
Other useful templates and facsimiles
- Intellectual Property Transfer Agreement: to transfer ownership of an intellectual property
- Trademark Registration: to register a national, European, or international trademark
- Priority search: to verify that there are no identical and/or similar trademarks to the one you want to register
- Distribution Agreement: to entrust a subject to purchase goods or services and then resell them to third parties in a specific territory
- Franchising contract: to create a network of affiliated points of sale and spread your products