An Unregistered Trademark can be Licensed to Another Party for a Fee

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Abstract: An unregistered trademark may lawfully be licensed to another person. If any third party had registered the trademark, the licensor’s actions will constitute a breach of license contract. Except where the licensor has committed obvious fraud, the validity and effectiveness of such a license contract upon unregistered trademarks cannot be denied.

(By Luo Yanjie) Generally, a trademark in a trademark license should be registered before it is licensed to any other party. However, in today’s post, we will discuss a particular case there the trademark licensed was unregistered at the time the license was concluded. After being heard by two courts and the Supreme Court, such a trademark license contract was ruled to be valid. The following is our analysis.

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Wanglaoji Trademark Lawsuit and China Trademark License Record System

By You Yunting

As reported (note: the link is in Chinese), the eye-catching trademark battle on Wanglaoji, also known as Wong Lo Kat in Hong Kong, as been adjudicated by Beijing No.1 Intermediate People’s Court on the 13th July 2012, by which Hong Dao Group’s (the “Hong Dao”) appeal to revoke the arbitration decision by CIETAC was refused. This means the arbitration decision shall take effect from 9th May 2012, the two supplementary trademark license contracts signed by the disputed parties are judged invalid, and Hong Dao will no longer use the trademark of Wanglaoji. For the case, we have expressed our opinions in the past post “Will JDB Revoke Wang Lao Ji Trademark Arbitration Award through Litigation?

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