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Royalty Agreement For Use Of Trademark Template for Malaysia

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Key Requirements PROMPT example:

Royalty Agreement For Use Of Trademark

"I need a Royalty Agreement For Use Of Trademark for licensing my food and beverage brand to a Malaysian company, with exclusive rights in Southeast Asia and a 5% royalty rate on net sales, starting from January 2025."

Document background
A Royalty Agreement For Use Of Trademark is essential when a business wants to legally use another company's trademark in Malaysia. This document is commonly used in brand licensing, franchising, and merchandising arrangements, providing a formal structure for commercial trademark exploitation while ensuring compliance with Malaysian intellectual property laws. The agreement becomes necessary when a trademark owner wishes to monetize their intellectual property through licensing while maintaining control over their brand's use and reputation. It includes crucial elements such as royalty calculation methods, payment terms, quality control measures, and territorial restrictions, all aligned with Malaysian legal requirements including the Trademarks Act 2019, Contracts Act 1950, and relevant tax regulations. This type of agreement is particularly important in protecting both parties' interests while facilitating commercial growth through brand licensing.
Suggested Sections

1. Parties: Identification of the trademark owner (licensor) and the party receiving rights to use the trademark (licensee)

2. Background: Context of the agreement, including details about the trademark ownership and the intended licensed use

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

4. Grant of Rights: Specific rights being granted, including scope, territory, and whether exclusive or non-exclusive

5. Term: Duration of the agreement, including commencement date and initial term

6. Royalty Payments: Detailed structure of royalty calculations, payment terms, currency, and payment methods

7. Quality Control: Standards for trademark usage and quality control requirements

8. Reporting and Audit Rights: Requirements for sales reporting and licensor's audit rights

9. Representations and Warranties: Statements of fact and promises by both parties regarding their rights and capabilities

10. Protection of IP Rights: Obligations regarding trademark protection, infringement reporting, and enforcement

11. Confidentiality: Provisions for protecting confidential information exchanged under the agreement

12. Termination: Grounds for termination, termination process, and post-termination obligations

13. General Provisions: Standard clauses including governing law, dispute resolution, notices, and assignment

Optional Sections

1. Minimum Royalty Guarantee: Include when the licensor requires a minimum guaranteed royalty payment regardless of sales

2. Sublicensing Rights: Include when licensee is permitted to sublicense the trademark to third parties

3. Marketing and Promotion: Include when specific marketing obligations or restrictions need to be imposed

4. Non-Competition: Include when restricting licensee's ability to deal with competing products/marks

5. Currency Exchange: Include for international agreements requiring currency conversion provisions

6. Force Majeure: Include when specific provisions for unforeseen circumstances are needed

7. Insurance: Include when requiring specific insurance coverage from licensee

8. Bank Guarantee: Include when financial security for royalty payments is required

Suggested Schedules

1. Schedule 1 - Licensed Trademarks: Detailed list and images of all licensed trademarks, including registration numbers

2. Schedule 2 - Licensed Products: Comprehensive list of products/services covered by the license

3. Schedule 3 - Territory: Detailed definition of geographic territories where trademark may be used

4. Schedule 4 - Royalty Calculations: Detailed formulas and examples of royalty calculations

5. Schedule 5 - Quality Control Standards: Specific quality standards and specifications for trademark usage

6. Schedule 6 - Approved Forms of Trademark: Approved variations, formats, and styling of the trademark

7. Appendix A - Reporting Templates: Standard forms for sales reporting and royalty calculations

8. Appendix B - Brand Guidelines: Detailed guidelines for trademark usage and brand representation

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


























Clauses



































Relevant Industries

Retail

Consumer Goods

Fashion and Apparel

Food and Beverage

Technology

Entertainment

Sports and Recreation

Automotive

Hospitality

Education

Manufacturing

Pharmaceuticals

Telecommunications

Media and Publishing

Relevant Teams

Legal

Intellectual Property

Finance

Commercial

Business Development

Brand Management

Compliance

Licensing

Treasury

Tax

Corporate Affairs

Risk Management

Relevant Roles

Legal Counsel

Intellectual Property Manager

Commercial Director

Licensing Manager

Brand Manager

Chief Legal Officer

Business Development Manager

Contract Manager

Chief Financial Officer

Trademark Attorney

Compliance Officer

Finance Director

Royalty Administrator

Corporate Counsel

IP Rights Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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