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ARTICLE · 04 SEPTEMBER 2016

Trade mark quality control sorts the geese from the turkeys

Swaab Attorneys
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A trade mark can be a very valuable asset for any business.

AustraliaIntellectual Property
James Skelton
James Skelton
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IN BRIEF

The recent decision of the Full Federal Court in Lodestar Anstalt v Campari America LLC [2016] FCAFC 92 means that it is now not enough to simply have the existence of quality control provisions in a trade mark licence. The licensor has an additional obligation to actively monitor the performance of the licensee and exercise the quality control provisions on a regular basis (at least once every three years).

What is a Trade Mark Licence?

A trade mark can be a very valuable asset for any business. A trade mark licence grants rights to a third party to use that asset in trade and commerce for particular goods or services within the scope of the licence. As the trade mark represents the owner's reputation for producing goods or services to a particular standard, it is necessary to ensure that any third party using the trade mark maintains the quality that consumers expect to be associated with products bearing the trade mark.

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