What is real
is not external form.”
A fundamental principle of trademark law is that the owner of the trademark must control its use. But what happens when you license to a third party?
Advertising, a special chapter of the licensing contract
Quality control can become more difficult when the licensor allows others to produce goods or provide services using their own brand. A serious problem is that if the brand’s dealer uses it in advertising in an unauthorized manner, this can damage the reputation of the brand. If the licensor does not control the advertisement, he may find that an unqualified or unsatisfied dealer has published content that is not compatible with the image that the owner of the mark wishes to convey or, worse, that the owner distorts the nature of the mark. In addition, a licensee may publish content that inadvertently infringes the trademark or other publicity rights of others, exposing the trademark owner to litigation and possible damages.
To avoid this type of problem, most license agreements require the brand owner to pre-approve all ads bearing the brand name. The licensee must submit to the licensor all publications where he wants to promote the trademark, the licensor then has a certain period of time to approve them, usually between 10 and 15 days. This system works well for print, radio and television advertising.
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