Brand Image License Contract Mexico

A Brand Image License Contract Mexico (Contrato de Licencia de Uso de Imagen de Marca) is a formal intellectual property licence agreement governed by Articles 130 through 142 of the Ley Federal de Protección a la Propiedad Industrial (LFPPI), published in the Diario Oficial de la Federación on 1 July 2020, and Article 87 of the Ley Federal del Derecho de Autor (LFDA), published in the DOF on 24 December 1996, under which the owner (licenciante) of a registered trademark (marca registrada), logo (logotipo), slogan (lema comercial), trade dress (imagen comercial), or other brand identity elements grants a licensee (licenciatario) the right to use those brand elements in commercial activities within Mexico, subject to quality control requirements, territory and term limitations, and agreed royalty payments.

The LFPPI Articles 130 through 142 specifically regulate trademark licences (licencias de uso de marca) in Mexico, establishing that: the owner of a registered trademark may grant licences to third parties to use the mark in connection with goods or services identical to those covered by the registration (Article 130 LFPPI); trademark licences must be recorded with the Instituto Mexicano de la Propiedad Industrial (IMPI) to be enforceable against third parties (Article 136 LFPPI); the licensor must ensure quality control over the goods or services produced or provided under the licensed mark (Article 135 LFPPI) — failure to maintain quality control may lead to trademark cancellation for non-use or abandonment; and exclusive licences (licencias exclusivas) prevent the licensor from granting additional licences for the same mark in the same territory and product category during the licence term (Article 130 LFPPI).

The brand image component — encompassing logos, graphic designs, colour schemes, product packaging, trade dress, and advertising materials — adds copyright protection under LFDA Article 87, which establishes that artistic works (obras artísticas) used as trademarks or commercial logos benefit from double protection: trademark protection under LFPPI for the commercial use of the mark, and copyright protection under LFDA for the underlying artistic expression. Article 87 LFDA requires that the use of an artistic work in a commercial context be specifically licensed by the copyright holder (autor or derechohabiente) — the trademark licence alone does not automatically grant the right to use the underlying artistic work in modified or derivative forms.

Brand image licences are fundamental to Mexico's franchise industry. The Ley Federal de Franquicias (contained in the Código de Comercio Articles 142-A through 142-J, as amended) requires that all franchise agreements include a trademark licence and disclosure of the franchisee's rights to use the franchisor's brand, training system, and operational know-how. Mexico's franchise sector is one of the largest in Latin America, with over 1,500 active franchise systems, making brand image licences the cornerstone of a multi-billion peso industry. IMPI's Registro de Franquicias provides a public record of franchise-related trademark licences.

The Comisión Federal de Competencia Económica (COFECE) regulates brand licensing practices to prevent anti-competitive arrangements under the Ley Federal de Competencia Económica (LFCE). Exclusive territory provisions, tying arrangements (ventas atadas), and minimum resale price maintenance (mantenimiento de precio de reventa) in brand licences are subject to COFECE scrutiny and may be declared anti-competitive if they substantially foreclose competition in the relevant market. Licensees who believe a brand licence agreement contains anti-competitive vertical restraints may file a complaint with COFECE under LFCE Articles 52 through 54.

A Brand Image License Contract Mexico is needed whenever a trademark or brand owner authorises another person or company to use their registered brand elements — marks, logos, slogans, trade dress, or graphic identity — in commercial activities within Mexico, whether for distribution, manufacturing, retail, franchising, marketing, or co-branding purposes.

The agreement is essential when a brand owner (licenciante) appoints a distributor, manufacturer, or retailer (licenciatario) to sell goods or provide services under the brand owner's trademark without transferring ownership of the mark. This is the standard structure for authorised dealer networks, licensed manufacturers (maquiladores bajo licencia), and retail licensees across industries from consumer goods and apparel to food service and technology products.

The contract is required for franchising arrangements governed by the Código de Comercio Articles 142-A through 142-J — every franchise system must include a formal trademark licence authorising the franchisee to use the franchisor's brand, including all associated logos, signage standards, uniform designs, menu graphics, and promotional materials. IMPI registration of the franchise trademark licence is necessary for the franchise system's integrity and the franchisee's legal protection.

The licence is needed when a company licenses its brand for co-branding campaigns (campañas de co-branding) with another company — for example, a sports brand licensing its logo for use on co-branded products manufactured by a third party, or a food brand licensing its image for use in a restaurant chain's menu. Co-branding licences require careful quality control provisions to protect both brands' reputations.

The agreement is also required when celebrities, athletes, or public figures (personas públicas) license their personal image, name, and likeness (derecho a la imagen) for commercial use under LFDA Article 87 in connection with product endorsements, advertising campaigns, or licensed merchandise. Mexico's Supreme Court (SCJN) has recognised the right to one's own image (derecho a la propia imagen) as a fundamental right under Article 6 of the Constitución, requiring that any commercial use of a person's likeness be expressly authorised in writing.

Under LFPPI Articles 130–142, LFDA Article 87, and IMPI administrative regulations, every brand image licence must be recorded with IMPI within 90 days of execution to be enforceable against third parties and to satisfy the quality control requirements that protect the trademark registration from cancellation for loss of distinctiveness.

A valid Brand Image License Contract Mexico under LFPPI Articles 130–142 and LFDA Article 87 must include the following essential elements:

Licensed Brand Elements (Elementos de Marca Licenciados): A precise description of all brand elements covered by the licence, with reference to IMPI registration numbers for each registered trademark, certificate numbers for registered logos and slogans, and copyright registration numbers (certificados INDAUTOR) for artistic works covered by LFDA. The licence should specify whether it covers the trademark word mark, device mark, logo, colour scheme, trade dress, slogan, and/or the complete corporate identity system. Unregistered brand elements (marcas no registradas) in use may be licensed as know-how or trade secrets but do not benefit from LFPPI statutory protection.

Authorised Use Scope (Alcance del Uso Autorizado): The specific commercial activities for which the brand elements may be used — production of goods, provision of services, retail sales, advertising, digital/online use, social media, packaging, and promotional materials. The licence should specify which product categories (clases niceanas) are covered, consistent with the IMPI registration's Nice Classification. Use outside the authorised scope constitutes trademark infringement (violación a los derechos marcarios) under LFPPI Article 223.

Exclusivity (Exclusividad): Whether the licence is exclusive (exclusiva), non-exclusive (no exclusiva), or sole (única — licensor will not grant other licences but retains own use rights). Under LFPPI Article 130, exclusive licences prevent the licensor from granting the same rights to third parties in the same territory and class. Exclusivity terms directly impact the royalty rate — exclusive licences command higher royalties and typically include minimum sales commitments (ventas mínimas) to justify the exclusivity premium.

Territory (Territorio): The geographic territory within Mexico where the licensee may use the brand elements — national (todo el territorio de los Estados Unidos Mexicanos), by state (estado), region (región), or municipality (municipio). Brand licences must define territory carefully as LFPPI registration is national — territorial subdivisions are contractual only and cannot prevent the licensee from using the mark outside the territory without additional contractual restrictions.

Term and Renewal (Plazo y Renovación): The licence term and renewal conditions, consistent with the IMPI trademark registration's remaining validity period (trademarks register for 10-year renewable terms under LFPPI Article 94). The licence may not outlast the trademark registration — if the registration lapses due to non-renewal, the licence automatically terminates unless the licensor renews the registration.

Quality Control (Control de Calidad): Mandatory quality control provisions under LFPPI Article 135, including: the licensor's right to inspect licensee's products, services, and facilities; minimum quality standards (estándares mínimos de calidad) for goods or services provided under the brand; the licensor's approval rights for advertising materials, packaging, and promotional content; and the licensee's obligation to use the brand elements only in the approved forms without modification. Insufficient quality control can expose the licensor's trademark to cancellation proceedings (acción de cancelación) at IMPI for abandonment or generic use.

Royalties and Payment (Regalías y Pago): The royalty structure — either a percentage of net sales (porcentaje sobre ventas netas), a fixed per-unit fee (regalía por unidad), a fixed annual fee (regalía fija anual), or a combination. ISR withholding obligations on royalty payments under LISR Article 167 — for foreign licensors, royalties paid to non-resident recipients are subject to 25% ISR withholding or reduced treaty rates. IVA at 16% applies to royalty payments under LIVA Article 14 Section VI.

IMPI Registration (Inscripción ante IMPI): The obligation to register the licence with IMPI under LFPPI Article 136 within a specified period after execution, including which party bears the IMPI registration fees (derechos fiscales) and maintains the registration. Forms-legal.com provides this Brand Image License Contract Mexico template as a reference. Every trademark licence intended for commercial exploitation in Mexico should be reviewed by a Licenciado en Derecho specialised in propiedad industrial and registered with IMPI before execution.