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What type of purpose do trademark license assignments usually have?

Purpose of trademark use license assignments

Trademark license assignments cover a variety of purposes and are tailored to the various situations and goals of the parties involved. The Trademark Law is in charge of regulating these movements.

Common purposes for trademark license assignments include:

  • Expansion of business Companies that own trademarks may choose to grant third-party licenses for use in different geographic territories or in specific market segments. This allows a more agile and extensive expansion of the brand without the owner company having to assume all the costs and risks inherent to this expansion.
  • The generation of additional income. By assigning a use license, the owner company can obtain periodic income in exchange for the right to use the trademark.
  • The brand association. Likewise, the company can grant licenses for the use of its brand to another company to take advantage of the prestige of the proprietary brand. This allows the company receiving the license to benefit from the reputation and recognition of the brand in its own field of operation.
  • Vehicle for entering new markets. Companies may choose to license the use of their brand to third parties to facilitate their foray into markets or market segments that they had previously not explored.
  • Protection measure for the brand. A company may license the use of its trademark to third parties for the purpose of preventing others from using or registering the trademark in an unauthorized manner. This strategy helps to safeguard the exclusivity and reputation of the brand.

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