NSFW : Naked Licensing and Uncontrolled Trademark Use

The nucleus of trademark owners' post-registration operations centers on protecting and enforcing those rights against unauthorized use by third parties. Conversely, much less attention is afforded to addressing the potential for inadvertent loss of rights when employed by authorized third parties. A trademark licensing agreement, absent adequate quality control provisions, offers no guarantee precluding the risk of abandonment. Here, the operative word is "control." Naked licensing occurs when the licensor fails to exercise adequate quality control over the trademark licensee. Accordingly, it is critical for mark owners to develop and implement a strategic plan to map licensing agreements, usage guidelines, approval mechanisms, and compliance monitoring efforts. Your trademark may be your company's most valuable asset. You should ensure that it is treated that way. The following article catalogues several non-exhaustive considerations when entering into such arraignments with third parties