Legal Issues in Trademark Licensing Agreements: Disputes And Enforcement Challenges

Abstract

This paper will elaborate the problems of trademark license agreement. The goal of this research is to search what is the real problem in the contract agreement between licensor and licensee. To analyze this substantive, this work will apply normative legal research. At the end, this work offers some substantive and pragmatic approaches. The substantive approach will discuss and examine some theories, norms, and policies. The freedom of contract principle is the main principle of contract to legalize a trademark license agreement. Freedom of contract is applied in the manufacture of a trademark license agreement. According to the freedom of contract, the parties are free to formulate the license agreement including but not limited to royalty payment, dispute resolution, and the end of the license agreement. The other basic principle of contract covering a trademark license agreement is mutual benefit. This principle requires that the parties must obtain economic value (profit) on the agreement. Licensor is willing to obtain royalty payments from the licensee.  To sump up the royalty belongs to economic rights which is transferable in order to maximize benefit of the trademark to the licensor. In addition, another principle is the principle of equality. Equality does not mean only the licensor who has a right to terminate the license agreement but also the licensee does.