A Complete Guide of Trademark Licensing in India

Looking to grow your brand without heavy investment or loss of ownership? Trademark licensing in India offers exactly that opportunity. It allows a trademark owner to authorise another business to use the brand for specific goods or services while the ownership remains fully intact. In return, the licensor earns royalties and expands brand reach, making trademark licensing in India a smart commercial move for modern entrepreneurs.

For startups, MSMEs, and growing enterprises, trademark licensing in India opens doors to new markets, faster expansion, and enhanced brand visibility without setting up additional infrastructure. Licensees benefit from instant brand recognition, while licensors strengthen goodwill and unlock new revenue streams.

Backed by the Trade Marks Act, 1999, trademark licensing in India provides legal clarity, enforceable rights, and quality control safeguards. If you want your brand to work for you even when you are not actively managing every market, trademark licensing in India is a strategic, scalable, and entrepreneur-friendly solution.

In this blog, we break down trademark licensing in India in a clear and practical manner, covering its legal framework, eligibility, types of licensing, key agreements, and compliance requirements under the Trade Marks Act, 1999. Whether you are a brand owner or a business user, this guide will help you understand how to structure and manage trademark licensing in India effectively and lawfully.

Table of Contents

Meaning and Concept of Trademark Licensing

Trademark licensing in India is a legally recognised mechanism under the Trade Marks Act, 1999 that allows the registered proprietor of a trademark to permit another person to use the trademark, without transferring ownership. While the Act does not expressly define the term “license,” the concept of trademark licensing in India is embodied through the provisions relating to permitted use and registered users.

As per Section 2(1)(r) read with Sections 48 and 49 of the Trademarks Act, 1999, trademark licensing in India enables a person, other than the registered proprietor, to use a trademark with the consent of the owner, subject to prescribed conditions. Such use is legally treated as use by the proprietor, thereby protecting the trademark from non-use related vulnerabilities.

The fundamental concept of trademark licensing in India lies in controlled commercial use. The licensee is allowed to use the trademark strictly in accordance with the licensing agreement, while the licensor retains ownership, supervision, and quality control. This statutory framework ensures brand protection while facilitating lawful brand commercialisation.

Legal Framework Governing Trademark Licensing in India

S. No.	Legal Provision	Relevant Section / Rule	Explanation
1.	Definition of Registered User	Section 2(1)(x)	Trademark licensing in India is recognised through the concept of a registered user, who is permitted to use the trademark with the consent of the registered proprietor.
2.	Rights of Registered Proprietor	Section 28	This provision confirms that in trademark licensing in India, the exclusive rights over the trademark remain with the registered proprietor despite permitted use by a licensee.
3.	Permitted Use of Trademark	Section 48	Section 48 forms the backbone of trademark licensing in India by recognising that use by a registered user is deemed to be use by the proprietor.
4.	Registration of Registered User	Section 49	Trademark licensing in India requires an application to the Trademark Registry for registration of the licensee as a registered user to obtain statutory recognition.
5.	Variation or Cancellation of Registered User	Section 50	This section empowers the Registrar to cancel or vary trademark licensing in India in cases of non-compliance or misuse of the trademark.
6.	Power of Registered User to Take Legal Action	Section 52	Under trademark licensing in India, a registered user may institute infringement proceedings subject to the terms of the licensing agreement.

Types of Trademark Licensing Arrangements in India

Understanding the different models of trademark licensing in India is essential for businesses to choose the right licensing structure that aligns with their commercial goals, control requirements, and market expansion strategy.

S. No.	Type of Trademark Licensing	Explanation
1.	Exclusive Trademark License	In trademark licensing in India, an exclusive license grants sole rights to the licensee to use the trademark for specified goods or services within an agreed territory, while even the trademark owner refrains from using the mark in that scope.
2.	Non-Exclusive Trademark License	Under trademark licensing in India, a non-exclusive license allows the trademark owner to grant usage rights to multiple licensees simultaneously and also retain the right to use the trademark personally.
3.	Sole Trademark License	A sole license in trademark licensing in India permits only one licensee to use the trademark in a defined area, while the registered proprietor continues to use the trademark but cannot license it to any other party.

Selecting the appropriate structure under trademark licensing in India helps businesses maintain brand control, optimise revenue, and ensure compliance with the Trade Marks Act, 1999 while expanding their market presence. If you are confused, which one to choose from above options, contact our expert team of My Legal Business LLP to get you trademark licensing Agreement drafted legally.

Eligibility to Grant Trademark License in India

To understand who can grant a license under trademark licensing in India, entrepreneurs must first know the legal rights given to a trademark owner under the Trade Marks Act, 1999.

• As per Section 28, the registered proprietor is the lawful owner of the trademark and has the exclusive right to use it or allow others to use it, which means only the trademark owner can grant a license in trademark licensing in India.

• Under Section 48, when a licensee uses the trademark with the owner’s permission, such use is legally treated as use by the owner, ensuring the brand’s legal protection continues under trademark licensing in India.

In simple terms, trademark licensing in India allows only the registered trademark owner to legally permit brand usage, while the law ensures that ownership, control, and brand value remain fully protected.

Trademark Licensing Agreement: Legal Importance

A well-drafted trademark licensing agreement in India is the cornerstone of legal and commercial protection for both the licensor and licensee under the Trade Marks Act, 1999.

The agreement formally records the rights and obligations of both parties in trademark licensing in India.
It specifies the scope, duration, and territory of use, ensuring clarity and preventing disputes.
Quality control provisions in the agreement protect the brand’s reputation under trademark licensing in India.
It defines royalty payments, fees, and other financial arrangements for transparent commercial dealings.
The agreement establishes legal recourse in case of infringement or breach of contract under trademark licensing in India.
Clauses for termination and renewal provide flexibility while maintaining compliance with the Trade Marks Act, 1999.

A carefully drafted trademark licensing agreement in India safeguards brand value, ensures compliance, and creates a mutually beneficial framework for business growth.

Documents Required for Trademark Licensing Registration

A duly executed licensing agreement is required for trademark licensing in India to establish permitted use of the trademark.
An affidavit or statement explaining the relationship between licensor and licensee is necessary for trademark licensing in India.
Form TM-U, as prescribed under the Trade Marks Rules, 2017, must be filed for trademark licensing in India.
Proof of the applicant’s identity and address is required to complete trademark licensing in India registration.
Details of goods or services covered under the license must accompany the application for trademark licensing in India.
A power of attorney or authorisation letter may be needed when filing through an agent in trademark licensing in India.

Duration, Renewal, and Termination of Trademark License in India

Aspect	Explanation
Duration	In trademark licensing in India, the duration of the license is determined by the licensing agreement and may be fixed for specific years or linked to the validity of the trademark registration.
Renewal	Renewal under trademark licensing in India depends on mutual consent of the licensor and licensee, and may require revising terms related to royalties, territory, or quality control.
Trademark Validity Link	Since a license cannot exist without a valid trademark, renewal of registration under the Trade Marks Act, 1999 directly impacts the continuation of trademark licensing in India.
Termination	A trademark license may be terminated due to breach of agreement, expiry of duration, or misuse of the trademark in trademark licensing in India.
Grounds for Cancellation	Under Section 50 of the Trade Marks Act, 1999, a registered user may be removed if conditions of trademark licensing in India are not followed or the license is obtained by misrepresentation.
Post-Termination Effects	After termination, the licensee must cease using the trademark, as continued use would constitute infringement under trademark licensing in India.

Conclusion

As you can see, trademark licensing in India is not just a legal formality, but a powerful business strategy that allows entrepreneurs to expand their brand, boost revenue, and enter new markets without giving up ownership. When done right, it safeguards your brand value, strengthens goodwill, and ensures compliant growth under the Trade Marks Act, 1999. If you want your trademark to work for you even beyond your current capacity, licensing is a smart and scalable path worth exploring.

If you are planning to draft or review a licensing agreement, register a trademark license, or need end-to-end guidance on trademark licensing in India, we can help. Our professional services include drafting agreements, documentation, registration support, and compliance advisory to ensure smooth, legally sound and commercially beneficial licensing arrangements for your business. Feel free to reach out to our expert team of My Legal Business LLP and let us assist you in protecting and monetizing your brand effectively.