Trade Mark Licence Agreement (Australia)
This Trade Mark Licence Agreement (the "Agreement") is made on [Commencement Date] between:
[Licensor Name] (ABN [Licensor ABN]) of [Licensor Street Address], [Licensor Suburb] [Licensor State] [Licensor Postcode] (the "Licensor"); and
[Licensee Name] (ABN [Licensee ABN]) of [Licensee Street Address], [Licensee Suburb] [Licensee State] [Licensee Postcode] (the "Licensee").
The Licensor and Licensee are referred to individually as a "Party" and collectively as the "Parties".
BACKGROUND
A. The Licensor is the registered owner of the trade mark known as [Trade Mark Name], registered on the Australian Register of Trade Marks under Registration No. [Registration Number] in respect of [Goods/Services Classes] (the "Licensed Mark").
B. The Licensee wishes to use the Licensed Mark in the course of its business on the terms and conditions set out in this Agreement.
THE PARTIES AGREE as follows:
1. DEFINITIONS
In this Agreement, unless the context otherwise requires:
"Authorised User" has the meaning given by s8 of the Trade Marks Act 1995 (Cth), and refers to the Licensee as authorised by the Licensor to use the Licensed Mark.
"Brand Guidelines" means any brand usage guidelines, style guides, or quality standards provided by the Licensor to the Licensee from time to time.
"GST" means goods and services tax imposed under the A New Tax System (Goods and Services Tax) Act 1999 (Cth).
"IP Australia" means the Australian Government agency that administers the Trade Marks Act 1995 (Cth).
"Licensed Mark" means the trade mark [Trade Mark Name], AU Registration No. [Registration Number], registered in [Goods/Services Classes], and any associated unregistered marks used in connection with those goods or services.
"Net Sales" means gross invoiced sales of licensed goods or services, less returns, allowances, and any applicable taxes collected on behalf of a government authority.
"Territory" means [Territory].
2. GRANT OF LICENCE
2.1 The Licensor hereby grants to the Licensee a [Exclusivity] licence to use the Licensed Mark in the Territory during the Term, solely for the following purposes: [Licence Scope].
2.2 By virtue of this Agreement, the Licensee is an 'authorised user' of the Licensed Mark within the meaning of s8 of the Trade Marks Act 1995 (Cth), and the Licensor authorises the Licensee's use of the Licensed Mark subject to the terms and conditions of this Agreement.
2.3 The Licensee must not use the Licensed Mark except in strict accordance with the Brand Guidelines (if any) provided by the Licensor from time to time. Prior to any proposed new use of the Licensed Mark, the Licensee must obtain the Licensor's prior written approval.
2.4 The Licensee must not sub-licence the Licensed Mark or assign its rights under this Agreement without the Licensor's prior written consent.
2.5 Nothing in this Agreement transfers ownership of the Licensed Mark to the Licensee. The Licensor retains all right, title, and interest in and to the Licensed Mark.
3. TERM
3.1 This Agreement commences on the Commencement Date and continues for [Licence Term] (the "Term"), unless terminated earlier in accordance with clause 8.
3.2 At the expiry of the Term, this Agreement may be renewed by written agreement of the Parties on terms to be negotiated in good faith.
4. LICENCE FEES AND PAYMENT
4.1 In consideration for the licence granted under this Agreement, the Licensee must pay the Licensor the [Fee Type] of [Licence Fee Amount] (the "Licence Fee"), payable [Payment Frequency].
4.2 If GST is payable on any supply made by the Licensor under this Agreement, the Licensee must pay to the Licensor an additional amount equal to the GST payable on that supply, upon receipt of a valid tax invoice from the Licensor.
4.3 All payments must be made in Australian dollars by bank transfer to the Licensor's nominated account.
4.4 The Licensor must maintain accurate books and records of all transactions subject to royalty calculations, and the Licensee has the right, on reasonable notice, to audit those records.
5. QUALITY CONTROL AND AUTHORISED USE
5.1 The Licensee acknowledges that the goodwill in the Licensed Mark is of significant value to the Licensor. The Licensee must maintain the quality, standard, and reputation of the goods and services provided under the Licensed Mark at a level no less than that maintained by the Licensor.
5.2 The Licensor has the right to inspect the Licensee's premises and review samples of goods and marketing materials bearing the Licensed Mark on reasonable notice to verify compliance with this Agreement and any Brand Guidelines.
5.3 The Licensee must promptly comply with any reasonable directions from the Licensor regarding the use, presentation, or withdrawal of the Licensed Mark.
5.4 The Licensor's exercise of quality control rights under this clause is for the purpose of ensuring that the trade mark retains its distinctiveness and is not used in a manner that would prejudice its registration or validity under the Trade Marks Act 1995 (Cth).
6. OWNERSHIP AND IP AUSTRALIA REGISTER
6.1 The Licensee acknowledges that the Licensed Mark and all goodwill generated by the Licensee's use of the Licensed Mark vest in and accrue to the Licensor. The Licensee must not do anything that would jeopardise the Licensor's ownership of or title to the Licensed Mark.
6.2 The Licensee must notify the Licensor immediately upon becoming aware of any infringement or potential infringement of the Licensed Mark or any passing-off or misleading or deceptive conduct by a third party in relation to the Licensed Mark.
6.3 The Licensor has the sole right to decide whether to take action against any infringer of the Licensed Mark. The Licensee must, at the Licensor's cost, provide reasonable assistance to the Licensor in any infringement proceedings.
6.4 The Licensor will maintain the registration of the Licensed Mark on the Australian Register of Trade Marks and pay all renewal fees as they fall due during the Term.
6.5 The Parties acknowledge that the licence granted by this Agreement may be recorded on the Australian Register of Trade Marks in accordance with s29 of the Trade Marks Act 1995 (Cth) if the Licensor elects to do so.
7. WARRANTIES AND REPRESENTATIONS
7.1 The Licensor warrants and represents that:
(a) the Licensor is the registered owner of the Licensed Mark on the Australian Register of Trade Marks and has full right, power, and authority to grant the licence under this Agreement;
(b) to the best of the Licensor's knowledge, the use of the Licensed Mark in accordance with this Agreement will not infringe the rights of any third party; and
(c) the Licensor will take all reasonable steps to maintain the registration of the Licensed Mark during the Term.
7.2 The Licensee warrants and represents that it will only use the Licensed Mark in accordance with the terms of this Agreement, the Brand Guidelines, and all applicable laws, including the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010 (Cth)).
8. TERMINATION
8.1 Either Party may terminate this Agreement by written notice to the other Party if the other Party commits a material breach of this Agreement and fails to remedy the breach within 30 days of receiving written notice of the breach.
8.2 The Licensor may terminate this Agreement immediately on written notice if the Licensee uses the Licensed Mark in a manner that materially damages its reputation or validity, becomes insolvent or subject to external administration, or assigns its rights under this Agreement without the Licensor's consent.
8.3 On expiry or termination of this Agreement, the Licensee must immediately cease all use of the Licensed Mark and destroy or return all materials bearing the Licensed Mark.
9. GENERAL PROVISIONS
9.1 Governing law: This Agreement is governed by the laws of [Governing State], Australia, and each Party irrevocably submits to the non-exclusive jurisdiction of the courts of [Governing State].
9.2 Entire agreement: This Agreement constitutes the entire agreement between the Parties with respect to the licence of the Licensed Mark and supersedes all prior representations, negotiations, and agreements.
9.3 Variation: This Agreement may only be amended by a written instrument signed by both Parties.
9.4 Severability: If any provision of this Agreement is unenforceable, it shall be severed without affecting the enforceability of the remaining provisions.
9.5 Counterparts: This Agreement may be signed in counterparts, each of which constitutes an original. Electronic signatures are valid.
EXECUTED as an agreement.
SIGNED by the Licensor:
Name: [Licensor Name]
ABN: [Licensor ABN]
SIGNED by the Licensee:
Name: [Licensee Name]
ABN: [Licensee ABN]
Licensor
________________
Signature
Date: ________________
Licensee
________________
Signature
Date: ________________
What Is a Trade Mark Licence Agreement (Australia)?
A Trade Mark Licence Agreement in Australia grants a licensee permission to use a specified trade mark on defined terms, fees, and territory while the owner retains ownership under the Corporations Act 2001 (Cth).
In Australia, trade marks are registered on the Australian Register of Trade Marks maintained by IP Australia, a government agency. A registered trade mark gives its owner the exclusive right to use the mark in relation to the goods and services covered by the registration (Trade Marks Act 1995 (Cth), s20). The registered owner may authorise another person to use the mark as a licensee under sections 8 and 26 to 29 of the Trade Marks Act 1995 (Cth). A person who uses a trade mark with the authorisation of the registered owner, subject to any conditions specified by the owner, is an 'authorised user' of the mark (s8).
Trade mark licences are used in a wide range of commercial contexts in Australia: franchise arrangements, distribution and retail agreements, manufacturing licences, intra-group IP licensing, and merchandise and brand extension deals. In each case, a written Trade Mark Licence Agreement is essential to clearly document the terms of the authorised use, the quality control obligations, the licence fees, and the consequences of termination.
A critical aspect of Australian trade mark licensing is the quality control obligation. The trade mark registration system is premised on a trade mark identifying the source and quality of goods or services. A licensor who fails to exercise adequate quality control over a licensee's use of the mark risks undermining the distinctiveness of the mark and the validity of the registration.
The legal framework governing the Trade Mark Licence Agreement (Australia) in Australia draws on several key statutes and regulatory bodies. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Parties executing a Trade Mark Licence Agreement (Australia) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Corporations Act 2001 (Cth) sets the foundational requirements.
When Do You Need a Trade Mark Licence Agreement (Australia)?
A Trade Mark Licence Agreement is needed whenever a registered trade mark owner in Australia wishes to authorise another person or entity to use their trade mark in connection with goods or services.
Franchise arrangements are one of the most common situations in which trade mark licences are used. A franchisor grants each franchisee a licence to use the franchisor's trade marks as part of the franchise system. While the franchise agreement will typically contain the licence terms, a separate Trade Mark Licence Agreement may be used to clearly document the scope of the permitted use and the quality control obligations.
Distribution and wholesale agreements: A manufacturer or brand owner may grant a distributor or wholesaler a licence to use its trade marks in advertising, promotional, and labelling materials in connection with the distribution of its products.
Merchandising and brand extension: A trade mark owner may license its brand to third parties for use on merchandise, apparel, accessories, or other products in connection with a brand extension strategy.
Intra-group IP licensing: Within a corporate group, the entity that owns the group's IP (often a holding company) will licence the trade marks to the operating companies in the group. This is a common structure in Australian business and requires a properly documented intercompany licence.
Manufacturing licences: A brand owner may licence a manufacturer to produce goods under its trade mark, particularly in the fashion, food and beverage, and consumer goods industries.
In all of these situations, a written Trade Mark Licence Agreement is essential to protect the integrity of the trade mark registration, document the authorised use, and set out the parties' rights and obligations clearly.
Parties in Australia should prepare a Trade Mark Licence Agreement (Australia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Trade Mark Licence Agreement (Australia)
A legally effective Australian Trade Mark Licence Agreement must include the following key elements.
Identification of the Licensed Mark: The agreement must precisely identify the trade mark being licensed, including its IP Australia registration number, the goods and services class(es) for which it is registered, and whether the licence covers the mark in any of its registered variants or only in a specific form.
Grant of licence and authorised user status: The agreement must clearly grant the licence and establish the Licensee as an 'authorised user' of the mark within the meaning of section 8 of the Trade Marks Act 1995 (Cth). The scope of the permitted use should be precisely defined.
Exclusivity: The agreement must specify whether the licence is exclusive (the Licensor cannot grant further licences to third parties in the territory), non-exclusive (the Licensor can licence the mark to others as well), or sole (only the Licensor and Licensee can use the mark).
Territory and term: The geographical territory and the duration of the licence must be specified.
Quality control: The Licensor must retain and exercise adequate quality control over the Licensee's use of the mark to protect the distinctiveness of the trade mark and the validity of the registration. The agreement should include inspection rights and approval processes for new uses.
Licence fees and GST: The agreement must set out the licence fees, payment schedule, and GST treatment.
Ownership and goodwill: The agreement must confirm that all goodwill generated by the Licensee's use of the Licensed Mark accrues to the Licensor, not to the Licensee.
Termination rights: The agreement should include clear termination provisions, including the consequences of breach and the obligations of the Licensee on termination.
Additional compliance elements for a Trade Mark Licence Agreement (Australia) used in Australia include: Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Trade Mark Licence Agreement (Australia) (Australia) [Legal document template]. Forms Legal. https://forms-legal.com/australia/business/intellectual-property/trademark-licence-agreement-australia
"Trade Mark Licence Agreement (Australia) (Australia)." Forms Legal, 2026, https://forms-legal.com/australia/business/intellectual-property/trademark-licence-agreement-australia.
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title = {Trade Mark Licence Agreement (Australia) (Australia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/australia/business/intellectual-property/trademark-licence-agreement-australia}},
note = {Free legal document template. Based on Corporations Act 2001 (Cth)}
}Also available for these jurisdictions:
Frequently Asked Questions
Under section 8 of the Trade Marks Act 1995 (Cth), a person is an 'authorised user' of a trade mark if they use the trade mark in relation to goods or services with the consent of the registered owner of the trade mark, subject to any conditions or limitations to which that consent is subject. The concept of 'authorised user' is important in Australian trade mark law because it determines who has the right to bring an infringement action. Under section 26 of the Trade Marks Act 1995 (Cth), an authorised user of a registered trade mark may take infringement action in certain circumstances. Under section 27, an exclusive authorised user may also bring infringement action in their own right if the registered owner fails to take action within a specified period. Recording a licensee as an authorised user on the Register of Trade Marks under sections 26-29 of the Trade Marks Act 1995 (Cth) provides public notice and may strengthen the licensee's ability to take enforcement action.
Quality control is a fundamental aspect of Australian trade mark licensing because a trade mark serves to identify the source and quality of goods or services. If a licensee is permitted to use a trade mark without any quality control by the licensor, the trade mark may lose its ability to distinguish the licensor's goods or services from those of others — a requirement for registration under section 41 of the Trade Marks Act 1995 (Cth). A trade mark that ceases to function as a badge of origin may become vulnerable to cancellation for non-use under section 92 of the Trade Marks Act 1995 (Cth), or to an invalidity action on the basis that it has become deceptive or likely to deceive. For this reason, a well-drafted Australian trade mark licence agreement should include provisions requiring the licensee to maintain quality standards, giving the licensor the right to inspect and approve goods and marketing materials bearing the mark, and permitting the licensor to give directions regarding the use of the mark.
Recording a trade mark licence on the Australian Register of Trade Marks is optional, not mandatory, under sections 26 to 29 of the Trade Marks Act 1995 (Cth). However, recording provides public notice of the licence arrangement and may have practical benefits for both parties. For a licensee, being recorded as an authorised user on the register may strengthen their ability to take infringement action under section 26 or 27 of the Trade Marks Act 1995 (Cth) if the licensor fails to act. For the licensor, a recorded licence provides clear evidence of the authorised use and may assist in defending against a non-use cancellation action by demonstrating that the mark has been used by an authorised user. An application to record a trade mark licence is made to IP Australia using the relevant form and paying the prescribed fee. The parties should seek advice from a trade mark solicitor or attorney regarding the specific benefits and process for their situation.
Generally yes, trade mark licence fees are subject to GST under the A New Tax System (Goods and Services Tax) Act 1999 (Cth), if the supply of the licence is a taxable supply. A supply of a licence to use a trade mark is a taxable supply if the licensor is registered or required to be registered for GST, the supply is made in the course of an enterprise carried on by the licensor, and the supply is connected with Australia. In those circumstances, the licensor must charge GST at the rate of 10% in addition to the licence fee, and must issue a valid tax invoice. The licensee can claim an input tax credit for the GST paid, provided the licence is acquired for a creditable purpose. Where a trade mark licence is granted between related parties in a corporate group as part of an internal restructure, the same GST rules apply. The parties should obtain specific GST advice in relation to any significant trade mark licence transaction.
A Trade Mark Licence Agreement (Australia) does not legally require a lawyer in Australia, and individuals and businesses may draft and execute the document independently. The Corporations Act 2001 (Cth) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Australia lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Federal Court of Australia has jurisdiction over disputes arising from this type of document, and Australian Securities and Investments Commission (ASIC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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