Your brand is more than just a logo or name, it’s an asset. A registered trade mark doesn’t just protect your identity; it can also open the door to entirely new revenue streams through licensing.
In this guide, we’ll explain what trade mark licensing is, how it works in Australia, and how you can use it to generate income while protecting your brand’s integrity.
What is Trade Mark Licensing?
Trade mark licensing is when the owner of a registered trade mark (the licensor) gives permission to another party (the licensee) to use the mark under agreed conditions.
Unlike a trade mark assignment, which transfers ownership, a licence keeps you in control while allowing others to benefit from your brand’s reputation.
Why License Your Trade Mark?
Licensing can help you:
- Expand your reach without the cost of setting up in new locations or industries.
- Generate royalty income from your intellectual property.
- Collaborate with other brands to create co-branded products or services.
- Build brand recognition faster through strategic partnerships.
Examples of Trade Mark Licensing
- A coffee brand licensing its name for coffee pods manufactured by another company.
- A fashion label licensing its logo for sunglasses or accessories.
- A sports team licensing its brand to merchandise suppliers.
Types of Trade Mark Licences
- Exclusive Licence – Only one licensee can use the trade mark in the agreed territory/industry.
- Non-Exclusive Licence – Multiple licensees can use the trade mark.
- Sole Licence – The trade mark owner and one licensee can both use the mark.
Key Elements of a Licensing Agreement
A well-drafted licensing agreement should cover:
- Scope of use – What products/services the mark can be used for.
- Territory – Where the licensee can operate.
- Term – The length of the agreement.
- Quality control – Standards to ensure the brand reputation isn’t damaged.
- Royalties and fees – Payment structure for use of the trade mark.
- Termination clauses – How and when the agreement can be ended.
Legal Considerations in Australia
Under the Trade Marks Act 1995 (Cth), trade mark owners must exercise control over how their mark is used by a licensee. Failure to do so can risk losing rights to the trade mark altogether (known as non-use vulnerability issues).
This means:
- You should regularly check how your trade mark is being used.
- Set clear quality guidelines and enforce them.
- Keep detailed records of all licensing agreements.
If you’re unsure whether your trade mark is properly registered and protected, our article on What Happens If Someone Steals Your Business Idea in Australia? explains why early protection is so important.
Licensing Your Trade Mark Internationally
If you want to license your trade mark overseas, you’ll need protection in those markets. The Madrid Protocol allows you to register your trade mark in multiple countries through one application via IP Australia—making cross-border licensing easier.
Common Pitfalls to Avoid
- Vague agreements without clear boundaries or quality standards.
- Failing to register your trade mark before licensing (you can’t licence what you don’t own).
- Not monitoring usage, leading to brand dilution or loss of consumer trust.
How brandU Legal Can Help
At BrandU Legal, we help you:
- Secure your trade mark rights in Australia and abroad.
- Draft airtight licensing agreements that protect your brand’s integrity.
- Negotiate licensing deals that work in your best interests.
- Monitor and enforce compliance with your licensing terms.
With decades of experience in intellectual property law, we know how to turn your trade mark into a valuable commercial asset, without losing control of your brand.
Final Word
Licensing your trade mark is a smart way to monetise your brand and expand your influence if it’s done strategically. The right agreements and protections ensure your brand grows in value, not risk.