Contract Trademark

Contract Trademark refers to a trademark used under a specific trade contract, where one party (usually the buyer) authorizes the other party (usually the seller) to use it on agreed goods or packaging. Its scope of use, duration, territory, and quality requirements are strictly bound by the contract. This term is common in OEM, private label manufacturing, and franchising in foreign trade. Key points: 1) The contract must clearly specify trademark ownership, the nature of the license (exclusive/non-exclusive), recordal, and allocation of infringement liability; 2) The seller may only use the trademark on goods of the contracted quantity and specifications, and may not expand the scope of use or sublicense without authorization; 3) If the trademark is not registered in the exporting country, there may be risks of customs detention or infringement, so it is advisable to require the buyer to provide proof of legal rights. Compared with 'private label trademark,' contract trademark emphasizes the contract's restriction on use behavior rather than merely the trademark itself; unlike an 'ordinary trademark,' its exercise depends on a specific contractual relationship, and the right to use typically terminates upon contract termination.