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Trademark Licensing Agreement

 

horak.
Rechtsanwälte
Fachanwälte
Patentanwälte

Georgstr. 48
30159 Hannover
Deutschland

Fon 0511.357 356.0
Fax 0511.357 356.29
horak@iprecht.de

 

 

horak.
Rechtsanwälte Hannover Hauptsitz
Fachanwälte
Patentanwälte

Georgstr. 48
30159 Hannover
Deutschland

Fon 0511.357 356.0
Fax 0511.357 356.29
hannover@iprecht.de

 

horak. 
Rechtsanwälte München
Fachanwälte
Patentanwälte

Landshuter Allee 8-10
80637 München
Deutschland

Tel.: 089.2500790-50
Fax: 089.2500790-59
munich@iprecht.de

 

horak. 
Rechtsanwälte Wien
 

Trauttmansdorffgasse 8
1130 Wien
Österreich

Tel.: +43.1.8761517
Fax: +49.511.357356-29
vienna@iprecht.de

 

TRADEMARK  LICENSING  AGREEMENT

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by and between

 

______________________________

(company, name, legal form)

 

(hereinafter referred to as “Licensor”)

 

and

 

______________________________

(company, name, legal form)

 

(hereinafter referred to as “Licensee”)

Recitals

WHEREAS, Licensor is engaged in the manufacture and distribution of fashionable athletic and casual clothing and accessories for adults in the Federal Republic of Germany (hereinafter referred to as “Germany”) and abroad and primarily sells its products to upscale clothing retailers, particularly boutiques, via independent commercial agents, and Licensee is a company engaged in the manufacture and distribution of childrens clothing which sells its products exclusively via franchisees;

    And Licensor is the owner of the trademark “XXL” protected for various goods in Germany, the European Union and numerous other countries, and Licensee is interested in acquiring the rights to use the trademark “XXL” for its own line of childrens clothing and produced in accordance with its own designs and Licensor is interested in granting Licensee such rights of use;

    NOW, THEREFORE, the parties hereto shall enter into to the following

    

TRADEMARK LICENSING AGREEMENT:

 

 

§ 1
Definitions

 

    “Trademark” means the trademark “XXL” protected by registration under Registration No. . . . . . . . . . . . in the Register maintained by the German Patent and Trademark Office.

    “Community Trademark” means the trademark “XXL” protected by registration under Registration No. . . . . . . . . . . at the Office for Harmonization in the Internal Market (Trade Marks and Designs).

    “IR Trademark” means the word and design mark “XXL” protected by registration as the internationally registered trademark under Registration No. . . . . . . . . . . with protection extending to certain countries.

    “Contract Products” means the products for which Licensee may use the Licensed Trademarks on the basis of the license granted under this Agreement, namely for childrens textile outer wear in sizes 56 cm to 174 cm.

    “Territory” means the countries in which Licensee may use the Licensed Trademarks on the basis of the license granted under this Agreement.

    “Contract Country” means a country within the Territory.

    “Licensed Trademarks” means, collectively, the Trademark, the Community Trademark and the IR Trademark to which Licensor grants Licensee rights of use on the basis of this Agreement.

    “Net Sales Proceeds” mean the prices charged by Licensee to its customers minus value-added tax, discounts, other rebates, freight, insurance, customs and packaging.

 

 

§ 2
Legal Status

 

    (2.1) Licensor is the owner of the German Trademark Registration No. . . . . . . . . . . with priority dated 1st January 1976, registered on 15th March 1977 for the following goods:

     Mens and womens outer wear, childrens outer wear, shoes, namely mens, womens and childrens shoes; leather goods, namely belts, bags and other containers not adapted to the items to be carried as well as small leather goods, particularly purses, wallets, key cases.

    (2.2) Licensor is the owner of the Community Trademark Registration No . . . . . with priority dated 1st April 1996, registered on 30th March 1998 for the following goods:

     Mens and womens outer wear, childrens outer wear, shoes, namely mens, womens and childrens shoes.

     The Community Trademark claims the seniority (priority of date) of the following national trademarks:

      -- German Trademark Registration No. . . . . . . . . with priority dated 1st January 1976

      -- Spanish Trademark Registration No. . . . . . . . with priority dated 15th March 1980

      -- French Trademark Registration No. . . . . . . . with priority dated 30th June 1985.

    (2.3) Licensor is the owner of the IR Trademark Registration No. . . . . . . . with priority dated 1st January 1976 and with protection extending to the countries

     Austria, Switzerland and Italy

     and with protection for the goods

     revetements pour dames et hommes, revetements pour enfants, chaussures, a savoir chaussures pour dames, hommes et enfants; produit en cuir, a savoir ceintures, sacs \lquote a main et autres rìipients non adaptes aux produits quiils sont destines \lquote a contenir, ainsi que petits articles en cuir, notamments bourse, portefeuilles, àuis \lquote a clef.

     In Switzerland, IR Trademark protection was refused for the goods

     produit en cuir, a savoir ceintures, sacs \lquote a main et autres rìipients non adaptes aux produits quiils sont destines \lquote a contenir, ainsi que petits articles en cuir, notamments bourse, portefeuilles, àuis \lquote a clef.

    (2.4) The Spanish Trademark Registration No. . . . . . . . ., the French Trademark Registration No. . . . . . . . and the Italian domestic portion of the IR Trademark Registration No. . . . . . . . . are not governed by this Agreement. The Community Trademark Registration No. . . . . . is only licensed for Germany, Switzerland and Austria.

 

 

§ 3
Grant of License

 

      (3.1) Licensor hereby grants to Licensee the exclusive right to use the Licensed Trademarks in the Territory for the Contract Products. Licensee is particularly entitled to

      (i) affix the Licensed Trademarks to the Contract Products or their means of presentation or packaging;

      (ii) offer or market the Contract Products under the Licensed Trademarks;

      (iii) use the Licensed Trademarks on business stationery or in advertising.

 

Variation 1:

    (3.2) Exclusivity within the meaning of this Agreement means that Licensor shall not grant the right to use the Licensed Trademarks in the Territory for the Contract Products to anyone other than Licensee and shall not use the Licensed Trademarks itself in the Territory for the Contract Products.

 

Variation 2:

    (3.2) Exclusivity within the meaning of this Agreement means that Licensor shall not grant the right to use the Licensed Trademarks in the Territory for the Contract Products to anyone other than Licensee. Licensor reserves the right, however, to manufacture and distribute the Contract Products in ( area within Territory ) under the Licensed Trademarks.

 

Variation 1:

    (3.3) Licensee is not entitled to use the Licensed Trademarks as an element of its company name, as a special characterization of its business operation or company or in any other manner as a mark to distinguish its business operation from others.

 

Variation 2:

    (3.3) Licensee is entitled to use the Licensed Trademarks as an element of its company name. The use of the licensed Trademark in any other form to characterize its business operation or company or in any other manner as a mark to distinguish its business operation from others is prohibited. This right is automatically terminated with the sale of the Licensees enterprise.

 

 

§ 4
Sublicense

 

Variation 1:

Licensee is not entitled to grant sublicenses to third parties.

 

Variation 2:

    (4.1) Licensee is entitled to grant sublicenses to third parties upon Licensors prior written consent.

    (4.2) Licensee agrees as sublicensor only to grant rights to use the Licensed Trademarks to the sublicensee under such terms which are equivalent to the terms of this Trademark Licensing Agreement. The sublicensee shall for its part agree to be bound accordingly by the terms of this Trademark Licensing Agreement.

    (4.3) In the event that a sublicense is granted, Licensee is obligated to provide Licensor with a copy of the sublicensing agreement without undue delay following the conclusion of the sublicense agreement.

    (4.4) As a sublicensor, Licensee shall not be entitled to claim the rights under the Licensed Trademarks in the event of a breach of the sublicensing agreement by the sublicensee unless Licensor has given its prior written consent thereto. Licensees right as the sublicensor to proceed against the sublicensee for the breach of the sublicensing agreement arising from contract or in tort shall remain unaffected thereby.

 

Variation 3:

    (4.1) Licensee is entitled to provide third parties with a non-proprietal right to use the Licensed Trademarks. Licensee is particularly entitled to grant its customers of the products labeled by the Licensed Trademarks the right also to use the Licensed Trademarks in connection with advertising for their services.

    (4.2) Licensee is not entitled to grant third parties any rights to the Licensed Trademarks beyond the provision of non-proprietal use. In particular, Licensee is not entitled to grant rights to use the Licensed Trademarks under a sublicense.

 

 

§ 5
Dispositions by Licensee

 

Variation 1:

Licensee is not entitled to pledge the rights to which it is entitled under this Trademark Licensing Agreement or to make them the subject of any other rights in rem.

 

Variation 2:

Licensee is entitled to pledge the rights to which it is entitled under this Trademark Licensing Agreement or make them the subject of other rights in rem. In the event of a pledge, Licensee is entitled to consent to the realization of the pledge by sale even without title.

 

 

§ 6
Registration of the License

 

To the extent this is possible and permitted under the laws of the respective Contract Countries, Licensee is entitled to file for the registration of the Trademark License Agreement in the appropriate registers at its own expense. Licensor is obligated to provide Licensee with the required power of attorney and consents upon request, or to deliver any other required declarations.

 

 

§ 7
Form of Use and Notice of License

 

    (7.1) Licensee agrees only to use the Licensed Trademarks in their registered form. In particular, Licensee shall use the Licensed Trademarks in their given colors as registered. If a multi-color presentation of the Licensed Trademarks is not possible on technical grounds, the presentation of the Licensed Trademarks shall be in black and white.

    (7.2) For the purposes of this Agreement, any use of the Licensed Trademarks deviating from their registered format shall not be deemed to be a permissible form of use within the meaning of this Trademark Licensing Agreement even if the deviations do not alter the identifying characteristics of the Licensed Trademarks.

    (7.3) To the extent this is possible from a technical standpoint, Licensee shall be obligated to attach a notice of license to written forms of use of the Licensed Trademarks, particularly on the licensed products or their means of presentation or packaging and advertising. Provided that deviations from this rule are not justified in the individual case, the notice of license shall be made through use of the symbol and a footnote explaining that the Licensed Trademarks are registered trademarks of Licensor.

    (7.4) Licensee is obligated to submit samples, proofs or other drafts for Licensors approval prior to publishing or broadcasting advertising or commercials using the Licensed Trademarks in the print media, billboard advertising, radio, television, movie theaters or on the Internet. The same shall apply for the use of the Licensed Trademarks on product packaging. To the extent Licensor does not expressly object to it within one (1) week, the individual advertising shall be deemed to be approved.

         Licensee shall not require any approval by Licensor to use the Licensed Trademarks in catalogues, price lists, brochures and other written materials which are not to be used for consumers.

 

 

§ 8
Quality Assurance

 

    (8.1) Licensee must ensure that the Contract Products manufactured by it using the Licensed Trademarks are of a uniform and consistent quality belonging to the upper or highest quality or price class for each product and are marketed via distribution channels which will not impair the image of the Licensed Trademarks.

    (8.2) Licensor is entitled to demand samples of the Contract Products manufactured under the use of the Licensed Trademarks for the purpose of quality control. Should Licensor object to the quality of the Contract Products, it shall inform Licensee thereof in writing and give Licensee the opportunity of remedying the quality defects within a reasonable period.

    (8.3) Licensor itself is, or others authorized by it are, entitled to enter Licensees manufacturing facilities during normal business hours to enable Licensor to inspect the Contract Products and the processes, methods, machinery, devices and materials used in manufacturing them. To the extent Licensee is entitled under this Agreement to have the Contract Products manufactured by a third party, Licensee shall ensure through appropriate contractual arrangements that Licensor is given the equivalent opportunity to make inspections in the manufacturing facilities of such third parties.

 

 

§ 9
Product Liability

 

    (9.1) Licensee undertakes to indemnify or compensate Licensor within the parties internal relationship against any and all claims by third parties based on the use of the Licensed Trademarks. This shall apply in particular for claims under product liability.

    (9.2) Licensee is obligated to maintain product liability insurance with an insurance sum of at least DM 5 (five) million for the term of this Agreement and for the period of the permitted use of the Licensed Trademarks following the termination of this Agreement.

 

 

§ 10
Licensors Warranty

 

Variation 1:

    (10.1) Licensor warrants that the legal status of the Licensed Trademarks corresponds to the information cited in § 2. Licensor furthermore warrants that the Licensed Trademarks have been used by it to maintain their validity.

    (10.2) Licensor warrants that the Licensed Trademarks are free of the rights of third parties and, in particular, that the Licensed Trademarks have not been pledged, no usufructory right or other right in rem has been granted in respect of them and they have not been the subject of enforcement proceedings.

 

Variation 2:

    (10.1) Licensor shall assume no liability for the validity of the Licensed Trademarks, including the possible forfeiture of the Licensed Trademarks due to non-use.

    (10.2) Licensor shall not give any warranty that the Licensed Trademarks are free of third-party rights, particularly that the Licensed Trademarks have not be pledged, no usufructory right or other right in rem has been granted or that they have not been the subject of enforcement proceedings.

 

Variations 1 and 2:

    (10.3) Licensor warrants that it has not granted third parties any rights to use the Licensed Trademarks for the licensed products in the Territory.

    (10.4) Licensor is not aware of any older rights of third parties which have been registered and could prevent the use of the Licensed Trademarks. The warranty of the non-existence of such rights is, however, hereby expressly excluded.

 

 

§ 11
Additional Obligations of the Licensor

 

    (11.1) Licensor is not entitled to pledge the Licensed Trademarks or make them the subject of any other rights in rem.

    (11.2) To the extent the Licensed Trademarks are the subject of enforcement measures, Licensor shall inform Licensee thereof without undue delay.

    (11.3) Licensor is obligated to inform Licensee of the transfer of any rights to others created by the registration of the Licensed Trademarks.

 

 

§ 12
Royalties

 

    (12.1) Licensee shall pay a single fixed royalty (“Basic Charge”) of DM . . upon the execution of this Agreement. The Basic Charge shall not be credited towards the current royalty payments.

         A repayment of the Basic Charge upon the premature termination of this Trademark Licensing Agreement shall be excluded.

 

Variation 1:

    (12.2) Licensee shall pay a royalty of . . . . . . % of the Net Sales Proceeds for the Licensed Products to Licensor.

 

Variation 2:

     Licensee shall pay to Licensor a royalty pursuant to the following graduated scale:

      (i) . . . . . % of the Net Sales Proceeds for the Licensed Products for Net Proceeds of up to DM . . . . . within an Accounting Period as defined in this Agreement;

      (ii) . . . . . % of the Net Sales Proceeds for the Licensed Products for Net Proceeds of up to DM . . . . . within an Accounting Period as defined in this Agreement;

      (iii) . . . . . % of the Net Sales Proceeds for the Licensed Products for Net Proceeds of up to DM . . . . . within an Accounting Period as defined in this Agreement.

    (12.3) Irrespective of the obligation to pay the current royalties under the foregoing § 12.2, Licensee undertakes to pay a minimum royalty of DM . . . . for each of the accounting periods as defined in this Agreement. The amount of the minimum royalty shall be credited to the current royalties. To the extent the current royalties for an Accounting Period are less than the minimum royalties, no decuction shall be made in the following Accounting Periods.

    (12.4) The royalties are understood to exclude all applicable value added taxes (VAT).

 

 

§ 13
Accounting Obligations

 

    (13.1) Licensee is obligated to keep separate books at its main office on the sales achieved of the Contract Products. Such books must document the manufactured and sold Contract Products according to piece numbers, Contract Countries, customers, delivery prices and billing and delivery information and otherwise satisfy the bookkeeping rules of Sec. 238 (1) sentences 2 and 3 German Commercial Code. Copies of any and all invoices on the Contract Products Licensee issues to its customers must be kept separately.

    (13.2) Licensor has the right to audit the books under the terms applicable in the following for the auditing of individual invoices or to have such audit conducted for it. In addition, Licensor has the right to inspect the documents described in clause 13.1 at Licensees premises upon prior notice during normal business hours and to make copies thereof at its own expense.

 

 

§ 14
Billing and Due Dates

 

    (14.1) The settlement of the royalties by Licensee shall be as per each March 31st, June 30th, September 30th and December 31st (hereinafter each referred to as the “Effective Date of Settlement”) on the basis of the Net Sales Proceeds for the Contract Products during the preceding calendar quarter (hereinafter referred to as “Accounting Period”). Licensee shall provide systematic and complete lists on April 15th, July 15th, October 15th and January 15th (each hereinafter referred to as the “Accounting Date”) or on the following weekday, if the Accounting Date is a Saturday, Sunday or holiday, from which

      (i) the type of Contract Products sold according to their description in Licensees applicable price list,

      (ii) the volume of the sold Contract Products according to piece numbers and

      (iii) the net sales achieved with the sold Contract Products, including a special list of returns and reductions in price

     can be seen, each listed according to Contract Country and summarized for the Territory. Licensee shall provide a list even if no sales were achieved in a given Accounting Period.

    (14.2) Licensor has the right to have the lists provided to it audited by an independent certified public accountant or an independent accounting firm at its own expense in order to monitor the accuracy of the statements of settlement. Should the audit of the statements of settlement reveal a discrepancy of more than 1 (one) per cent to the detriment of Licensor for the royalty owed for the respective Accounting Period, Licensee shall pay the costs of such audit.

    (14.3) The acceptance of the delivery of the lists by Licensor shall not signify the acceptance of their accuracy and shall not constitute a waiver of an audit and objection at a later date. Should Licensor establish or suspect a mistake in the statement of settlement, it shall call this to the attention of Licensee within 2 (two) weeks of the provision of the list and give Licensee the opportunity to review the list again and correct it if required within an additional 2 (two) weeks.

    (14.4) Royalties shall be due for payment upon the provision of the list, and any amount in excess of the advance payment on the royalty shall be remitted to the account designated by Licensor. Should the royalty to be paid according to the statement of settlement be lower than the advance on the royalty paid for the respective Accounting Period, no payment must be made. The advance on the royalty for the next Accounting Period shall be decreased in such case by the amount by which the advance on the royalty exceeded the royalty payable for the preceding Accounting Period under the statement of settlement. The provision on payment of minimum royalties in clause 12.3 shall remain unaffected.

 

 

§ 15
Taxes

 

1. Scenario: domestic Licensee and domestic Licensor

 

     The value added tax (VAT) arising on the royalties is to be paid by the Licensee in addition to the royalties. The VAT invoiced by the Licensor is recoverable by the Licensee as input VAT.

 

2. Scenario: domestic Licensee and foreign Licensor

 

Variation 1:

    (15.1) The Licensor is obligated to state in its invoice the VAT payable on the royalties. The Licensee is obligated to withhold the VAT shown in the invoice and to pay it over his tax office. At the same time, the VAT is recoverable as input VAT by the Licensee.

 

Variation 2:

     The parties apply the zero-rule pursuant of Section 52 paragraph 2 German VAT Ordinance. The Licensor shall not show any German VAT in the invoice to be issued to the Licensee.

    (15.2) Provided that payment of the royalties is subject to withholding tax, this tax shall be withheld by the Licensee and shall be paid to the competent tax office if withholding tax is not reduced or excluded under an applicable double tax treaty. In this case, an exemption certificate is to be obtained from the Federal Bureau of Finance (Bundesamt für Finanzen).

 

3. Scenario: domestic Licensor and foreign Licensee

 

    (26.1) In the event foreign sales taxes or similar taxes are due on royalties, the Licensor is obliged to clarify whether or not such tax shall be shown seperatly in the invoice on the royalties. To the extent there is a provision corresponding to the zero-rule of Section 52 German VAT Ordinance, the parties will apply such rule.

    (15.2) In the event the royalties are subject to non-resident tax, including withholding tax, the Licensee will support the Licensor to obtain an exemption certificate or a tax refund pursuant to the applicable double tax treaty.

 

 

§ 16
Defense of the Licensed Trademarks against Infringements
by Third Parties

 

    (16.1) Licensor and Licensee shall mutually inform one another without undue delay of any and all infringements of the Licensed Trademarks. Licensee is obligated to support Licensor in a suitable manner in the defense of the Licensed Trademarks if this is appropriate in the individual case.

    (16.2) Action against infringers both out of court and in court shall generally be reserved for Licensor. If Licensor is not willing or interested in initiating action against an infringer, Licensee shall be entitled, but not obligated, to enter an action in its own name based on the infringement of the Licensed Trademarks subject to Licensors consent. Licensor may only refuse its consent for good cause. Licensor shall provide Licensee with written authorization upon request should Licensee be entitled to assert rights under the Licensed Trademarks in its own name under this Agreement.

    (16.3) Licensee is entitled to join any infringement action raised by Licensor in order to claim compensation for Licensees loss.

    (16.4) The costs of conducting infringement litigation shall be borne by the party asserting the rights of the Licensed Trademarks. The parties agree, however, to negotiate a different cost arrangement in the event that the infringement litigation affects the interests of the respective other party to more than an insignificant extent.

 

 

§ 17
Attacks by Third Parties on the Integrity of the Licensed Trademarks

 

The defense against attacks by third parties against the integrity of the Licensed Trademarks (requests for cancellation, actions for cancellation) shall be exclusively reserved for Licensor.

 

 

§ 18
Attacks by Third Parties on the Use of the Licensed Trademarks

 

The parties shall inform one another if third parties proceed against Licensor or Licensee with the allegation that the use of the Licensed Trademarks infringes the rights of the third party under an older mark. The parties are obligated to support one another in the appropriate manner in the defense against infringement claims if this is appropriate in the individual case.

 

 

§ 19
Oppostions, Petitions for a Cancellation,
Actions for Cancellation

 

Licensor shall have the exclusive right to enter oppositions against the filing or registration of trademarks with junior priority. The same shall apply for petitions for cancellations and actions for cancellations entered against the registration of the trademarks of third parties.

 

 

§ 20
Maintenance of the Licensed Trademarks

 

    (20.1) Licensor is obligated to maintain the Licensed Trademarks, and particularly to procure the renewal of the terms of protection for the Licensed Trademarks. The fees and expenses connected with the maintenance of the Licensed Trademarks, particularly the fees of the competent trademark authorities and the fees of any attorneys or patent attorneys or the costs of trademark agents or other representatives shall be borne by Licensor subject to the following provisions.

 

Variation 1:

    (21.2) For the maintenance of the Licensed Trademarks Licensee shall pay a monthly service fee of DM ________ to cover Licensors current administrative costs.

 

Variation 2:

     Licensor is entitled to charge Licensee a reasonable portion of the costs associated with the maintenance of the Licensed Trademarks, namely official renewal fees and the fees of external trademark agents or trademark attorneys.

 

 

§ 21
Non-Aggression Clause

 

    (21.1) Licensee undertakes not to derive any rights from the use of the Licensed Trademarks against Licensor, attack the Licensed Trademarks themselves or instigate or support attacks by third parties, and shall also tolerate new registrations by the Licensor of the Licensed Trademarks or variants thereof.

    (21.2) Licensee furthermore undertakes not to file for or use any trademarks for identical or similar goods which are identical or similar to the Licensed Trademarks.

 

 

§ 22
Breach of the Licensing Agreement

 

    (22.1) Should one of the parties be in breach of a provision of this Trademark Licensing Agreement, the other party must first demand that the breach be remedied without undue delay. Should the party in breach of contract not cease its objectionable behavior and deliver the other party appropriate verification thereof within one (1) week of receiving such demand, the other party shall be entitled to terminate this Trademark Licensing Agreement without notice.

    (22.2) Irrespective of the right to terminate this Agreement without notice and the other rights to which Licensor is entitled following the breach of this Trademark Licensing Agreement, Licensor may assert the rights under the Licensed Trademarks against Licensee if Licensee is in breach of one of the following provisions of this Trademark Licensing Agreement:

      1. term of the License

      2. the form in which the Trademark may be used according to the registration thereof;

      3. the type of goods or services for which the License was granted;

      4. the Territory in which the Trademark may be attached;

      5. the quality of the goods manufactured by Licensee.

 

 

§ 23
Transfer of Rights and Obligations

 

The rights under this Agreement shall also apply for any legal successors of the parties under contract. The parties undertake to subject their respective legal successors to the obligations under this Agreement and any affiliated companies within the meaning of the Joint Stock Company Act (Aktiengesetz).

 

 

§ 24
Term of Contract

 

    (26.1) This Agreement shall enter into force upon signing by both Parties.

 

Variation 1:

    (24.2) This Trademark Licensing Agreement shall be entered into for an indeterminate period.

 

Variation 1.1:

    (24.3) This Agreement may be terminated with a notice period of six (6) months effective to the calendar year.

 

Variation 1.2:

     This Agreement may be terminated in the first year of contract with a notice period of one (1) month, in the second year of contract with a notice period of two (2) months, in the third to fifth years of contract with a notice period of five (5) months, effective in each case to the end of the calendar month.

 

Variation 2:

    (24.2) This Agreement shall be entered into for an initial term of five (5) years (“Basic Term”).

 

Variation 2.1:

    (24.3) The Basic Term or each term of renewal, as the case may be, shall be extended automatically by periods of two (2) further years if neither party objects thereto in writing no later than six (6) months prior to the expiration of the Basic Term or of each term of renewal.

 

Variation 2.2:

     Following the Basic Term, this Agreement shall be deemed to have been entered into for an indeterminate period if neither party objects to the renewal six (6) months prior to the expiration of the Basic Term.

         If this Agreement has been renewed for an indeterminate period, it may be validly terminated with a notice period of six (6) months effective to the calendar year.

    (24.4) Any notice of termination must be in writing.

    (24.5) This Agreement may be terminated by either party for good cause without observing a notice period. Good cause shall exist in particular if circumstances occur which, taking into consideration the substance and purpose of this Agreement, would make it unreasonable for one or both of the parties to continue the contractual relationship.

    (24.6) Good cause for either party shall exist if

      -- the other party is in gross breach of its obligations;

      -- the other party experiences financial difficulties or a deterioration of its financial situation or debt regulation procedures are initiated in respect of its assets (e.g. composition or bankruptcy proceedings) or if such party goes into liquidation.

    (24.7) Good cause for Licensor shall include, but is not limited to,

      -- a change in the ownership situtation at Licensee in such manner that a competitor of Licensor acquires an interest;

      -- Licensees breach of one of the provisions of this Trademark Licensing Agreement listed in § 22.2

 

 

§ 25
Right of First Refusal

 

    (25.1) In the event of the sale of one, several or all of the Licensed Trademarks, Licensee shall have a right of first refusal. Licensor shall inform Licensee without undue delay and in writing of the content of the purchase and sale agreement entered into with the buyers. Licensee must exercise its right of first refusal within one (1) month of receiving notice upon a written declaration to Licensor.

    (25.2) Licensee shall generally exercise its right of first refusal to the same extent in which Licensor has sold the Licensed Trademarks. If Licensor has only sold the Licensed Trademarks for a portion of the goods for which the Licensed Trademarks enjoy protection, Licensee shall be entitled to a right of first refusal for such portion. In such case, Licensor shall be obligated to divide the registrations of the Licensed Trademarks accordingly upon the exercise of the right of first refusal by Licensee by declaring to the appropriate trademark authority that the registration of the Licensed Trademarks for these goods shall continue as a separate registration. The parties are aware that the priority of the original registration shall be maintained for each partial registration.

    (25.3) To the extent that the registration of the Licensed Trademarks cannot be divided under the laws of one or more Contract Countries, Licensor undertakes to transfer all of the Licensed Trademarks protected in such countries to Licensee. In this case Licensee undertakes to grant Licensor an exclusive and perpetual return license to use the Licensed Trademarks for the products which would not have been transferred in the event of a permissible separation. The terms of such return license shall conform as far as possible to the terms of this Trademark Licensing Agreement.

    (25.4) If Licensee has not acquired the Licensed Trademarks under this clause or has not acquired them in their entirety, this shall not otherwise affect this Trademark License Agreement.

 

 

§ 26
Licensees Rights and Obligations following the Termination
of this Agreement

 

    (26.1) Upon the termination of the Trademark Licensing Agreement, the right of the Licensee to use the Licensed Trademarks shall end.

 

Variation 1:

    (26.2) The Licensee shall have the right to distribute its existing inventories of Contract Products and also Contract Products that are still being produced in the regular course of business for a period of up to one year from the Agreements termination date. For Contract Products distributed by the Licensee after termination of the Agreement, the Licensee has to pay the agreed upon royalties. If the Agreement is terminated by the Licensor for extraordinary reasons, the Licensor shall have no right to continue distributing the Contract Products further. Licensor is not obligated to buy any remaining inventories.

 

Variation 2:

    (26.2) The Licensee does not have the right to distribute the existing inventories of Contract Products after termination of the Agreement. The Licensor is obligated to purchase any remaining inventories of the Contract Products as far as such Contract Products are not damaged or have other defects. The purchase price shall amount to 80 % of the Licensees regular sale price to its direct customers, which purchase price must be at least as high as the production cost.

 

Variation 3:

    (26.2) The Licensor shall have the right, at the time of the Agreements termination, to purchase any remaining inventories of the Contract Products at the Licensees location. The Licensor is obligated to notify the Licensee in writing of Licensors intention to purchase at the latest three months prior to the Agreements termination, and to acquire the Contract Products within one month after the Agreements termination. The purchase price shall amount to 80 % of the Licensees regular sale price to its direct customers which price must be at least as high as the production cost. As soon as the Licensor has decided to purchase any remaining inventories of Contract Products, the Licensee must discontinue the distribution of such remaining inventories. In the event that the Licensor does not purchase any remaining inventories of Contract Products, the Licensee shall have the right to distribute its existing inventories of Contract Products and also Contract Products that are still being produced in the regular course of business for a period of up to one year from the Agreements termination date.

    (26.3) To the extent advertising materials, brochures, price lists, etc. containing the Licensed Trademarks are required by Licensee after the expiration of the sell-off period, the parties shall endeavor to come to an agreement which does justice to the interests of both parties.

 

 

§ 27
Transfer of Rights Acquired by Use

 

To the extent Licensee has acquired own trademark rights on the basis of using the Licensed Trademarks in commercial transactions with the consequence that the marks have attained market recognition as trademarks in the pertinent market sector, Licensee is obligated to transfer such trademark rights acquired by use to Licensor upon the termination of this Licensing Agreement.

 

 

§ 28
Disputes and Dispute Settlement

 

Variation 1: Clause on the mediation procedure of the WIPO

    (28.1) All disputes, controversies or claims resulting from or relating to this Agreement or subsequent amendments of this Agreeement, including, but not limited to, the creation, validity, binding effect, construction, performance, breach or termination hereof, as well as all non-contractual claims, shall be subject to the mediation procedure pursuant to the WIPOs rules for mediation procedure.

 

Variation 2: Clause on the arbitration procedure of the WIPO

    (28.1) All disputes, controversies or claims resulting from or relating to this Agreement or subsequent amendments of this Agreeement, including, but not limited to, the creation, validity, binding effect, construction, performance, breach or termination hereof, as well as all non-contractual claims, shall be subject to arbitration pursuant to the arbitrations rules of the WIPO.

 

Variation 3: Clause on expedited arbitration of the WIPO

    (28.1) All disputes, controversies or claims resulting from or relating to this Agreement or subsequent amendments of this Agreeement, including, but not limited to, the creation, validity, binding effect, construction, performance, breach or termination hereof, as well as all non-contractual claims, shall be subject to expedited arbitration pursuant to the rules for expedited arbitration of the WIPO and shall be finally decided in such expedited arbitration.

 

Variation 4: Clause on mediation procedure of the WIPO with subsequent arbitration in the event of the failure to settlement the dispute.

    (28.1) As in variation 1
    If and to the extent disputes, controversies or claims are not settled in mediation within ( 60 ) ( 90 ) days of the start of the mediation procedure, they shall be subject to arbitration upon submission of an application for arbitration proceedings by one of the parties pursuant to the rules for arbitration of the WIPO and shall be finally decided in such arbitration.

         Alternatively, if a party fails to participate in arbitration or no longer participates in arbitration prior to the expiration of the period of ( 60 ) ( 90 ) days, the dispute, controversy or claim shall be subject to and finally decided in arbitration under the arbitration rules of the WIPO upon the submission of an application for arbitration proceedings by the other party to the arbitration.

 

Variations 1 to 4:

    (28.2) Venue for the ( Variation 1: mediation ) ( Variations 2 and 3: arbitration ) ( Variation 4: mediation and arbitration ) should be . . . . . . . . . . ( Variations 2,3 and 4: The court of arbitration shall be composed of ( three arbitrators ) ( one arbitrator ). . . . . . . . . . . . should be the language of the ( mediation and ) arbitration proceedings.

 

Variation 5:

     The courts of general jurisdiction shall decide on all disputes under or in connection with this Agreement. Venue is the location of Licensors registered office. Licensor is entitled also to enter actions against Licensee at any other court having jurisdiction under law.

 

 

§ 29
General Provisions

 

    (29.1) This Agreement, including the attached Schedules, comprises the entire understanding between the parties hereto with respect to the subject matter of this Agreement. This Agreement replaces and cancels any earlier oral or written agreements between the parties with respect to the subject matter of this Agreement. No oral side agreements to this Agreement have been made.

    (29.2) Amendments and supplements to this Agreement shall require written form. This written form requirement shall also apply to the amendment of this written form clause.

    (29.3) The full or partial invalidity of individual provisions of this Agreement shall affect neither the validity of the remaining provisions nor this Agreement as a whole. Any fully or partially invalid provision shall be replaced by a valid provision coming closest to the commercial purpose of the fully or partially invalid provision.

    (29.4) This Agreement shall be subject to the laws of the Federal Republic of Germany

© 1998-2017 Rechtsanwalt Dipl.-Ing. Michael Horak, LL.M.

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horak. Rechtsanwälte // Fachanwälte // Patentanwälte· Georgstr. 48 · 30159 Hannover · Deutschland · Fon: 0511.357356.0 · Fax:0511.357356.29 · horak@iprecht.de