Legal review of licensing agreements for the use of trademark for sustainable business
Article posted in 2025-03-19 14:06:10 | VEAT
Law firm Veat received a request from an electronic commerce enterprise (hereinafter referred to as "client") dealing in toys and other goods, to review a merchandise licensing agreement and provide legal advice.
The client had entered into a licensing agreement with an external company to utilize trademark and design rights of a specific brand for product sales, but these rights expire upon termination of the agreement. To prevent potential legal issues after termination, the client requested Law firm Veat to review the licensing agreement and provide legal advice.
Law firm Veat first meticulously analyzed the client’s existing merchandise licensing agreement, focusing especially on the issue of rights ownership after termination of the agreement. According to the existing agreement, the client could no longer use the design rights and copyrights after termination of the agreement, and a violation of this could result in legal risks.
Law firm Veat proposed to the client two options to allow continued use of existing trademarks and designs after the agreement’s termination: ▲ negotiating with the existing rights holder to extend the licensing period or redefine the scope of rights, and ▲ entering into a new agreement to clearly define the usage rights. In this process, Law firm Veat presented realistic alternatives, considering both the client’s business needs and legal stability.
In the electronic commerce market, brand image and design, not just product quality, act as key elements that determine competitiveness. Especially given the active sale of products utilizing popular characters, brand logos, and design rights, licensing agreements are important, and proactive review of potential legal issues after termination of the agreement is necessary.
Therefore, it is important to clearly define the usage conditions of intellectual property (IP) rights, such as trademark rights, design rights, and copyrights, when entering into an agreement, and to comprehensively review the rights relationship after termination of the agreement. It is recommended to have a legal review conducted before entering into an agreement with the assistance of legal experts experienced in copyright law.
Law firm Veat is strengthening intellectual property legal advice with a focus on Oh Seungjong, a lawyer with a deep understanding of copyright cases, and lawyers with expertise in IT and intellectual property provide legal advice and litigation related to copyright, trademarks, and unfair competition law.
Through this case, Law firm Veat provided the client with practical legal advice to block legal risks in advance and to enable stable business operations even after termination of the agreement.
Especially, the issue of rights ownership that may arise after termination of a licensing agreement is an important factor directly related to the sustainability of a business, and Law firm Veat supports the thorough review and preparation of countermeasures for this issue.
If you need intellectual property legal advice, including licensing, please contact Law firm Veat.
You can also find this case study on the Law firm Veat blog.
- Legal Review of Merchandise Licensing Agreement for Sustainable Business
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Law firm Veat