Why should trademark license agreements include exit strategies?

When entering into a trademark license agreement, the parties should take into consideration the events that will happen and/or be required at the end of the license term, most importantly:

• Selling trademarked products after the expiration of the trademark license is counterfeiting and can have serious consequences;

• If you are the licensee, you don’t want to be left holding on to products you can’t sell after the end of the license agreement term; and

• If you are the licensor, you should not agree to a prolonged sell-off period and should not permit deep discounting after the end of the license term. 

Read about the need for exit strategies within trademark licensing agreements