• Brandia LLC

“NAKED LICENSES” Cause Forfeiture of Intellectual Property Rights


Diligent IP owners register and license their intangible corporate assets to generate additional flows of income. Oftentimes, however, the importance of implementing and enforcing effective control mechanisms over their licensees is overlooked and the outcome can be gruesome.


The absence of these control measures typically results in loss of profits, market share and even harm to consumers which exposes both, licensor and licensees, to liability. Inaction by the licensor can lead to involuntary abandonment and cancellation of federal trademark registrations at the USPTO. The lack of supervision of the licensees’ quality standards is known as “naked license”.


Avoid this scenario by requiring your licensees to provide you periodically with samples of products they sell with your brand. Verify consistently the quality standards are compliant with your license. Do not assume licensees are complying with your license since the effects of their breach coupled with your inaction as licensor can transcend beyond the scope of the relationship. It is best to take effective action to monitor the licensees, verify and enforce your license.

Brandia LLC

6718 Whittier Ave., Suite 200

Mc Lean , VA 22101

Email:  IP@BrandiaLLC.com

Tel:  571.723.5520

www.BrandiaLLC.com

Website Terms & Conditions

The information on this website is for general information purposes only. Nothing on this website should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and its receipt or viewing does not constitute, an attorney-client relationship. By continuing to use this website, you agree having read and understand the provisions contained in the Terms & of Use Disclaimers section of this website. Brandia LLC is registered a Virginia Limited Liability Company. All Brandia trademarks and copyrights are reserved and of exclusive use by Brandia LLC subject to strict US and international enforcement, remedies and damages.