What is a trademark license and how does it work?

A trademark license is a contract between a trademark owner and a licensee that authorizes the licensee to use the trademark in exchange for money or other consideration. In California, trademark licensing is governed by both state laws and federal laws. Under California’s trademark law, the owner of a trademark must have a valid trademark registration with either the state of California or with the United States Patent and Trademark Office (USPTO). Once the trademark is registered, the owner has the exclusive right to use that trademark in commerce. The owner of the trademark can then solicit a third-party known as a licensee to use the trademark in exchange for money or other consideration. The trademark licensee agrees to use the trademark in exchange for payment. The trademark owner is responsible for monitoring the licensee’s use of the trademark to ensure that it is being used correctly and not being damaged or diluted. The trademark owner is also responsible for ensuring that the licensee does not infringe on any other trademark owned by a different party. In California, trademark licensing agreements must be legally enforceable. The trademark owner can pursue legal action against the licensee if they violate the agreement. The trademark owner may also be able to seek compensation from the licensee if they lose brand value or suffer damages as a result of the licensee’s use of the trademark.

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What is a trademark license and how does it work?

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