Trademark Licence Agreement Sublicensing Clause

Summary

This sublicensing clause is intended for inclusion in an intellectual property licence agreement to prohibit a licensee from sublicensing its rights. This clause includes practical guidance and drafting notes. A sublicense is a right granted by a licensee to a third party to use a licensor's intellectual property. Generally, a licensor (trademark owner) would not want to give a licensee the right to sublicense as the trademark owner may lose control over how the trademark is used and the quality of the goods/services provided under the trademark. If the licensor does allow sublicensing, then it should be included in the clause that it is only permitted if approved by the licensor with the licensor's written consent and that sublicensee enters into a licensing agreement with the licensor. If the licensor considers allowing sublicensing, then the licensor should investigate the entity that would be the sublicensee and determine if it can still maintain control over the mark if used by ...