License Checklist

Checklist of Issues for Trademark and Designer Licenses

• Confirm licensor's rights U.S. and foreign
• Trademarks registered in relevant classes
• Exclusivity define
• Scope of use limitations
• Geographic limitations
• Minimum sales guarantees
• Aesthetic control by licensor
• Consistent brand image maintained by other licensees
• Avoid "naked" license
• "Bad boy" clause ability to terminate license in case of corrupt or immoral behavior
• Advertising and promotional budgets
• Method of calculation of sales "net" defined
• Advance payments / guaranteed minimum payments
• Timing of royalty payments
• Creditworthiness of licensee
• Licensee's right to accept other licenses from competitors
• Audits
• Term and Termination
• Indemnities and hold harmless
• Royalty rate