In a previous article
"Perpetual contracts: can they be
terminated?", the termination of contracts with
no agreed end date or provisions governing termination was
discussed. Term and termination are key issues that need to be
carefully considered and clearly addressed in IP licences. In
particular, trade marks are capable of being registered in
perpetuity provided the relevant fees are paid. Therefore, trade
mark licences may potentially be perpetual in term.
The term of a licence agreement generally refers to the period
of rights granted to the licensee for the exploitation of the
licensed IP (such as trade marks) and other related obligations. In
the context of trade mark licences, if the licence term is long, it
is highly recommended that the parties consider and include
mechanisms to address any change in commercial and business
circumstances and prospects of further expansion of goods and
services to be offered and market segments.
