Trademark Licensing In India

Trademark licensing is the process wherein a registered proprietor of a trademark authorises a third party to use the mark in the course of trade without transferring the ownership of the mark. The licensing of the trademark allows the registered proprietor to let others use the mark without assigning the ownership of the mark. The proprietor can also put other limitations on the use of the mark through the terms that he puts into the licensing agreement. For example, the proprietor may license a trademark to be used for only particular goods and services.

The term "license" or "licensing" is nowhere to be found in the Trade Marks Act, 1999. The concept and the laws governing licensing of trademarks are found in Sections 48-55 of the Act. It can be said that the term "registered user" in the Act is synonymous with the term "licensee". Under the 1999 Act, "permitted use" as defined in Section 2(1)(r) means the use of a registered trademark by a third person as a