Trademark License Agreement Costs

The OECD defines brands as „words, symbols or other trademarks used by companies to distinguish their products or services from those of others.“ You can use our database to find the latest royalties stipulated in authentic trademark licensing agreements between independent parties. This is ideal for transfer pricing analysis and brand valuations. Reference to third-party royalties can help you determine fair transfer prices for intercompany transactions on brands. To do this effectively, you need to ensure that the uncontrolled transactions you have analyzed are sufficiently comparable to your transaction. You can download examples of brand licensing agreements from our database. To do this, check out our examples of licensing agreements, enter the „Brand“ search bar and click „Download.“ If you use the RoyaltyRange database, we will ask you for the details of the brand licensing fee you need. Therefore, you know that the data we provide meets comparability standards. For more information on brand rights royalties, check out our blog: What are royalties? Licensing agreements containing trademarks will also tore the terms of use of the mark in order to preserve its quality. After all, the value of the brand lies in its reputation. If you set royalties for a trademark licensing agreement, it may be helpful to see the prices charged by other companies for similar brands. It is important to remember that trademark licensing rights can be influenced by a number of factors, including the market and brand strength.

When a brand owner decides to license his trademark, he will sign a trademark licensing agreement with the licensee. This describes the terms of the licence as well as the royalties. If you`re wondering what an Intercompany brand transaction looks like, here`s an example: royalty rates in trademark licensing agreements are generally agreed as a percentage of revenue. The purchaser therefore pays the donor an agreed percentage of the gross or net turnover generated by the use of the mark. In some cases, royalties are defined as a fixed fee, or even as a lump sum. For major brands, brands can be known in such a way as to enter the everyday language. The OECD cites the example of Kleenex, which is now commonly used to refer to any type of tissue handkerchief. Google is another brand of this kind: the verb „to Google something“ is now commonly used for the Internet search act, regardless of the search engine.

The licensee is an MNE that designs, manufactures and sells greeting cards under a well-known brand (Company A). The licensee is the parent company of MNE (Company B), which owns a number of companies belonging to the same MNE group. The two related companies have entered into a trademark licensing agreement.

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