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The License To Use Trademark agreement is a crucial document in Indian intellectual property law, designed to facilitate the authorized use of registered trademarks while protecting the rights of trademark owners. This agreement becomes necessary when a business wants to permit another entity to use its trademark in a controlled manner, whether for manufacturing products, providing services, or other commercial purposes. It must comply with the Indian Trade Marks Act, 1999, and related regulations, which require specific provisions for quality control and proper trademark usage. The document typically includes detailed terms about permitted use, territory restrictions, royalty payments, quality standards, and termination conditions. It's particularly important in franchise operations, brand expansions, and commercial collaborations where brand integrity needs to be maintained while allowing controlled third-party usage of the trademark.

1. Parties: Identification of the trademark owner (Licensor) and the party receiving rights to use the trademark (Licensee), including full legal names and addresses

2. Background: Context of the agreement, including details of trademark ownership and registration, and the business purpose for the license

3. Definitions: Definitions of key terms used throughout the agreement, including 'Licensed Marks', 'Territory', 'Licensed Products', 'Net Sales', etc.

4. Grant of License: Specific rights being granted, including type of license (exclusive/non-exclusive), territory, and field of use

5. Term and Termination: Duration of the license, renewal provisions, and circumstances for termination

6. Quality Control: Standards for trademark usage, approval processes for products/services, and quality maintenance requirements

7. Usage Guidelines: Specific requirements for how the trademark must be displayed, including format, size, and placement

8. Royalties and Payments: Financial terms, including royalty rates, payment schedules, and reporting requirements

9. Representations and Warranties: Assertions by both parties regarding their rights and capabilities

10. Protection of the Mark: Obligations regarding trademark protection, infringement actions, and cooperation in enforcement

11. Confidentiality: Provisions for protecting confidential information exchanged during the license relationship

12. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for dispute resolution