Trademark licence agreement in India
A licence lets others use your brand for a fee. The agreement and quality control decide whether you keep your rights.
Quick answer
A trademark licence is a written permission to use your mark on agreed terms. Use can be as a permitted user under the Act, and the licensee can be recorded as a registered user. Keep quality control in your hands, or you risk losing distinctiveness.
Key clauses
- The mark, goods or services and territory.
- Exclusive or non-exclusive, and duration.
- Royalty or fee, reporting and audit rights.
- Quality standards and your right to inspect.
- Rules on sub-licensing, termination and what happens to stock at the end.
- Who enforces against infringers.
Last checked: 12 November 2026. This page is general information, not legal advice. Fees and rules change, so confirm on the official site before you file.
Registered user recording
Sections 48 to 54 deal with registered users. The registered user is recorded through a joint application by the owner and the licensee, within six months of the agreement under the Trade Marks Rules, 2017. A fee of around ₹4,500 per mark for e-filing has been reported, so confirm the current amount and form on ipindia.gov.in. Use by a permitted user can count as use by the owner.
Why quality control matters
If the owner does not control quality, the mark can lose its link to a single source. This is sometimes called a naked licence and can weaken or end your rights. Under Section 50 a registered user can be cancelled on certain grounds. Section 69(5) limits what an unrecorded user can do in proceedings.
Trademark vs copyright licences
For creative works the rules are different. See copyright assignment and licence. To register the mark first, see trademark registration.
Frequently asked questions
Must a licence be registered?
Recording is not always required for the licence to exist, but it matters for use counting as the owner’s use and for limits under Section 69(5). Get advice on your case.
Is franchising the same as licensing?
A franchise normally includes a trademark licence plus a business system and support.
Can the licensee sue infringers?
Only if the agreement and the law allow it. State this in the agreement.
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Written by: Trademark Wale editorial team, with over 40 years of experience in trademark and IP work, serving 7000+ brands. Last updated: 12 November 2026.
Sources: Trade Marks Act, 1999 (Sections 2(1)(r), 48 to 54, 69), Trade Marks Rules, 2017, IP India.
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