Trade-mark Licence Agreement — Quebec (Trade-marks Act)
Contrat de licence de marque de commerce — Trade-marks Act s. 50 — Quebec
TRADE-MARK LICENCE AGREEMENT
Contrat de licence de marque de commerce — Trade-marks Act (RSC 1985, c T-13), s. 50 — Quebec
THIS TRADE-MARK LICENCE AGREEMENT is entered into as of [Agreement Date] between:
LICENSOR: [Licensor Name], [Licensor Address] ('Licensor')
LICENSEE: [Licensee Name], [Licensee Address] ('Licensee')
1. GRANT OF LICENCE
Licensed trade-mark(s): [Licensed Mark]
Licensed goods and services: [Licensed Goods]
The Licensor grants to the Licensee a [Exclusivity] licence to use the Licensed Trade-mark(s) in the territory of [Territory] for the goods and services described above, for a term of [Licence Term], subject to the terms of this Agreement.
Sublicensing: [Sublicensing Permitted]. If sublicensing is permitted, each sublicence must require the sublicensee to comply with the quality control standards in this Agreement. Unauthorized sublicensing is a material breach.
2. QUALITY CONTROL (MANDATORY — Trade-marks Act s. 50)
The Licensor must exercise direct or indirect control over the character or quality of goods and services sold under the Licensed Trade-mark(s). Without effective quality control, this licence will be deemed invalid under the Trade-marks Act s. 50(1), which may result in the mark losing its distinctiveness and becoming invalid.
Quality standards: [Quality Standards]
Inspection rights: [Inspection Rights]
The Licensee must maintain quality control records and make them available to the Licensor on request. Any material deviation from the quality standards must be reported to the Licensor within 5 business days.
3. ROYALTIES AND PAYMENT
Royalty structure: [Royalty Structure]
Royalty rate / amount: [Royalty Rate]
Payment terms: [Payment Terms]
The Licensee must maintain accurate books and records sufficient to verify royalty calculations. The Licensor has the right to audit such records on 30 days' written notice, at the Licensor's expense (unless an underpayment of more than 5% is found, in which case audit costs are borne by the Licensee).
4. TERMINATION
Termination rights: [Termination Rights]
Post-termination obligations: [Post-Termination]
All goodwill generated by the Licensee's use of the Licensed Trade-mark(s) inures exclusively to the benefit of the Licensor. The Licensee acquires no rights in the mark other than the licence granted by this Agreement.
5. GOVERNING LAW
This Agreement is governed by the federal Trade-marks Act (RSC 1985, c T-13) and, for contractual obligations, the laws of the Province of Quebec, including the Civil Code of Québec. Disputes shall be resolved by negotiation (30 days), then mediation (IMAQ), then arbitration under Code of Civil Procedure arts. 620–655.
Licensor (Trade-mark Owner)
________________
Signature
Licensee
________________
Signature
What Is a Trade-mark Licence Agreement — Quebec (Trade-marks Act)?
A Trade-mark Licence Agreement (Trade-marks Act) is a formal legal document used in Quebec for business operations, corporate governance, and commercial transactions. Create a Quebec Trade-mark Licence Agreement (Contrat de licence de marque de commerce) under the Trade-marks Act (RSC 1985, c T-13) s. 50 (quality control requirement). Licensor grants the licensee the right to use registered or unregistered marks. Covers licence scope, territory, royalties, quality control, sublicensing, term, and termination. Download as PDF or Word. This document operates within Quebec's civil law (Civil Code of Quebec) framework and is designed to provide clear legal protection and certainty for all parties involved. These laws establish the legal requirements for valid agreements, the rights and obligations of the parties, and the remedies available in case of breach or dispute. Understanding the applicable legal framework is essential for drafting an effective Trade-mark Licence Agreement (Trade-marks Act) that will be enforceable under Quebec law. The importance of having a properly drafted Trade-mark Licence Agreement (Trade-marks Act) cannot be overstated. Without a clear, written agreement, parties risk misunderstandings, disputes, and potential legal liability. A well-drafted Trade-mark Licence Agreement (Trade-marks Act) sets out the terms and conditions that govern the relationship between the parties, including their respective rights, obligations, and the procedures for resolving any disagreements that may arise. It serves as the primary reference point should any questions or disputes occur during the course of the arrangement. In today's regulatory environment in Quebec, compliance with legal requirements is increasingly important. A Trade-mark Licence Agreement (Trade-marks Act) helps confirm that all parties are meeting their legal obligations and provides a clear record of the agreed terms for future reference. Using a standardized Trade-mark Licence Agreement (Trade-marks Act) template offers several practical advantages. It confirms that all essential clauses are included, reduces the time and cost of drafting from scratch, and provides a professional framework that can be customized to suit specific needs. Whether you are an individual, a small business owner, or a large corporation operating in Quebec, having access to a well-structured template confirms consistency and completeness in your legal documentation.
When Do You Need a Trade-mark Licence Agreement — Quebec (Trade-marks Act)?
A Trade-mark Licence Agreement (Trade-marks Act) is needed whenever parties in Quebec wish to formalize their arrangement regarding business operations, corporate governance, and commercial transactions. There are numerous situations in which this document becomes essential for protecting the interests of all involved parties. In a business context, you may need a Trade-mark Licence Agreement (Trade-marks Act) when entering into new commercial relationships, when formalizing existing arrangements that have previously been informal, when expanding your business operations, or when restructuring existing agreements. Companies registered with REQ should confirm proper documentation is maintained for all significant business transactions. You should also consider using a Trade-mark Licence Agreement (Trade-marks Act) when there has been a change in circumstances that affects an existing arrangement, when you need to comply with new regulatory requirements, when you wish to update outdated documentation, or when professional advisors recommend formalizing certain aspects of your affairs. In Quebec, maintaining current and accurate legal documentation is considered best practice and can help prevent costly disputes. It is generally advisable to prepare a Trade-mark Licence Agreement (Trade-marks Act) before any issues arise, rather than trying to document terms after a dispute has already begun. Proactive documentation provides clarity and reduces the potential for misunderstandings. If you are unsure whether you need this document for your specific situation in Quebec, consulting with a qualified legal professional can provide guidance tailored to your circumstances. The timing of executing a Trade-mark Licence Agreement (Trade-marks Act) is also important. In Quebec, certain documents must be executed before specific actions are taken or within prescribed time periods to be effective. Delaying the preparation of necessary legal documents can result in complications, lost rights, or additional costs. Therefore, it is recommended to prepare this document as early as possible once the need has been identified.
What to Include in Your Trade-mark Licence Agreement — Quebec (Trade-marks Act)
A well-drafted Trade-mark Licence Agreement (Trade-marks Act) for use in Quebec should contain several essential elements to confirm it is legally effective and provides adequate protection for all parties. Party Identification: The document should clearly identify all parties involved, including their full legal names, addresses, and relevant identification numbers. For individuals in Quebec, this may include identity card or passport numbers. For companies, registration numbers and registered addresses should be specified. Clear identification prevents disputes about who is bound by the agreement. Recitals and Background: The document should include background information explaining the context and purpose of the arrangement. This helps establish the parties' intentions and can be important in interpreting the terms of the document if any ambiguity arises later. The recitals section provides valuable context for the operative provisions that follow. Operative Terms: The core terms and conditions should be set out clearly and thoroughly. This includes the rights and obligations of each party, any conditions or prerequisites, the duration of the arrangement, and any limitations or restrictions. All key terms should be defined precisely to avoid ambiguity and potential disputes. Payment and Financial Terms: Where applicable, the document should specify any payments, fees, deposits, or other financial considerations. The amounts, currency (CAD), payment schedules, and methods of payment should be clearly stated. Any provisions for late payment, interest charges, or adjustments should also be included. Term and Termination: The document should specify its duration, including the start date, end date or conditions for expiry, and any provisions for renewal or extension. The circumstances under which either party may terminate the arrangement early should be clearly defined, along with any notice requirements and the consequences of termination. Dispute Resolution: The document should include provisions for resolving any disputes that may arise, such as negotiation, mediation, arbitration, or litigation. In Quebec, parties may choose to specify the jurisdiction of Quebec courts and the applicable law. Including a clear dispute resolution mechanism can save significant time and expense if disagreements occur. Governing Law and Jurisdiction: The document should specify that it is governed by the laws of Quebec and that disputes shall be subject to the jurisdiction of Quebec courts. This is particularly important in cross-border transactions or where parties are based in different jurisdictions. Signatures and Execution: The document must be properly signed by all parties or their authorised representatives. In Quebec, certain documents may need to be witnessed, notarised, or executed as deeds to be legally effective. The date of execution should be clearly recorded, and each party should retain an original signed copy for their records.
Sources & Citations
Statutory citations link to official government sources.
- RSC 1985, c T-13CA official
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Trade-mark Licence Agreement — Quebec (Trade-marks Act) (Quebec) [Legal document template]. Forms Legal. https://forms-legal.com/quebec/business/intellectual-property/trademark-licence-agreement-quebec
"Trade-mark Licence Agreement — Quebec (Trade-marks Act) (Quebec)." Forms Legal, 2026, https://forms-legal.com/quebec/business/intellectual-property/trademark-licence-agreement-quebec.
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}Frequently Asked Questions
Under the Trade-marks Act s. 50(1), a licence to use a trade-mark is deemed a valid licence only if the licensor (mark owner) exercises direct or indirect control over the character or quality of the goods or services sold or performed under the mark by the licensee. This quality control requirement reflects the fundamental purpose of trade-marks as source identifiers — if the licensor does not control quality, the mark no longer reliably identifies the goods or services as coming from a single source and may become invalid for lack of distinctiveness. Practically, quality control provisions must appear in the written licence agreement and the licensor must actually exercise the control — paper provisions without real oversight may not suffice. Common quality control mechanisms include: specification sheets, product samples, factory inspections, mystery shopper programs, and contractual audit rights.
An exclusive trade-mark licence grants the licensee the sole right to use the trade-mark in the defined territory and for the defined goods or services — the licensor agrees not to use the mark themselves or grant licences to other parties within the scope of exclusivity. A non-exclusive licence allows the licensor to simultaneously license the same mark to multiple licensees in the same territory. An exclusive licensee has stronger rights to enforce the mark against third-party infringers — under the Trade-marks Act s. 55.1, an exclusive licensee may bring infringement proceedings if the owner fails to do so. The licence agreement should specify clearly whether it is exclusive, co-exclusive (limited number of licensees), or non-exclusive, as this significantly affects the commercial value and the remedies available to the licensee.
Trade-mark royalties in a Quebec licence agreement are typically structured in one of several ways. A running royalty is a percentage of net sales (revenues from sales of goods or services bearing the licensed mark, less returns, discounts, and taxes) paid periodically (monthly, quarterly). A flat fee (redevance forfaitaire) is a fixed payment per period regardless of actual sales. A minimum annual royalty guarantees the licensor a minimum payment regardless of actual sales, protecting against the licensee under-exploiting the mark. An upfront licence fee (paiement initial) may be required at signing as consideration for granting the licence. Most commercial trade-mark licences combine a minimum annual royalty with a running royalty — the running royalty is credited against any minimum royalty shortfall. Royalty payments are subject to GST/QST in Quebec.
If a trade-mark licence fails to comply with the Trade-marks Act s. 50 quality control requirement, the licence may be deemed invalid, with serious consequences. An invalid licence means that the licensee's use of the mark does not inure to the licensor's benefit — the licensor cannot count the licensee's use to support the validity of the mark during the relevant period. If the licensor has relied on licensed use to maintain the mark's distinctiveness and no adequate quality control existed, a third party may apply to CIPO for expungement of the mark for loss of distinctiveness (Trade-marks Act s. 18(1)(b)). The parties to an invalid licence may also lose the right to enforce the mark against infringers during the invalid period. To avoid these risks, a written licence with genuine quality control provisions is essential for any trade-mark licensor in Quebec.
A Trade-mark Licence Agreement — Quebec (Trade-marks Act) does not legally require a lawyer in Quebec, and individuals and businesses may draft and execute the document independently. However, seeking independent legal advice from a qualified Quebec 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 Superior Court of Québec has jurisdiction over disputes arising from this type of document, and Registraire des entreprises du Québec 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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