Trademarks Licensing in Azerbaijan
Registration is compulsory for licensing of a trademark.
The following information and documents are required for Trademark Recordal of License
- Three originals of the License Agreement;
- Power of Attorney from both Licensor and Licensee duly signed and sealed with a company stamp.
- Payment of relevant official fees.
The following information should be mentioned in a trademark license agreement:
- Identification of the trademark or trademarks that are the subject of the agreement,
- The name of the licensor and licensee,
- The specific trademark right or rights to be licensed, including the geographic territory in which the marks are being licensed,
- The nature and quality of the goods and/or services with which the licensee may use the trademark, also known as a “quality control provision,” which is obligatory,
- Royalty – It is obligatory that the royalty amount is stated explicitly in the license. You can opt for a flat fee or a percentage of the sales depending upon the mutual agreement.
- It is recommendable to include a clause where it is mentioned that the Licensee shall annually provide the Licensor with the information about Licensee’s earnings and profit on sales of goods marked by the Trademark. According to the Russian Law if the License Agreement contains no information about the terms for submission of profit reports, then the reports will have to be provided on demand.