It is essential that the licence contain provisions allowing the donor to maintain quality control of the products or services granted during the licence period. In the absence of such control, a so-called “naked” licence can be created, resulting in the loss of trademark rights and, in the worst case, the termination of the trademark. Company A`s ability to derive its own profits from co-branding may depend on the interpretation of the fundamental terms of the underlying licensing agreement, issues such as trademark rights, exclusivity, territory, commercial channels and co-branding ownership that are the subject of litigation and an unpleasant divorce between the parties. A co-branding partnership can establish the reputation and value of one or both brands depending on the circumstances; Therefore, their cessation could trigger a bitter conflict between the parties by initiating competition rather than cooperation. Cross-licensing positions any brand holder as a licensee who authorizes a partner (the licensee) to use his or her trademark under agreed conditions. The licensee must be the registered owner or another party with the right to use the trademark under an existing agreement (for example. B a sublicensing). Ideally, the licensee should be the partner that uses the brand in trade, not an intermediary or other third party involved in the production, distribution or promotion of the co-branding product. Cooperation can generate competition. The ideal license is therefore delineated the ownership of co-branded real estate that may result from the joint efforts of the parties.
In addition, the license should identify licensed actions resulting from the co-brand and contain appropriate renegotiation conditions to take into account changes in circumstances due to potential successes or defects. The underlying licence should be formulated in such a way as to prohibit the use of the mark, which may be pejorative or detrimental to a party`s reputation. Contracting parties should retain the right to verify and approve advertising and advertising of the product`s co-brand and packaging. In addition, publicly available advertisements should, where possible, reveal the ownership rights of each brand and reveal that each brand is used under license. Technologies such as the internet, AI, social media and the virtual presence of brands, as well as an increase in the famous recognition of the brand from Kinshasa to Kyoto and an increase in advertising opportunities, will continue to facilitate the proliferation of co-branding campaigns worldwide.