Intellectual Property Law
Provisions of Trademark License Agreements
This summary outlines the legal framework for trademark license agreements under Jordanian law, covering the trademark definition, the nature and types of licenses, essential elements and practical effects. It also highlights formal and temporal limits on licenses and the need to align licensing terms with registration and reputation protection.
Updated: 13 April 2023
Prepared and reviewed by: Ashraf Al-Khawaja
Concept of a Trademark
A trademark is legally defined as a visible sign used to distinguish a person’s goods or services from others, encompassing words, shapes, colours or combinations thereof. Jordanian law and international commitments extend protection to well-known marks—even unregistered ones in certain circumstances—while excluding marks contrary to public order, morals or specific statutory prohibitions.
Nature of the License and Its Characteristics
A license is an agreement by which a trademark owner grants another person the right to use the mark for a period in return for consideration. The contract is commercial in nature, often based on personal considerations, must be in writing, and is a remunerative agreement of limited duration—permissible only within the temporal limits set for trademark protection.
Types of Licenses and Essential Elements
The law recognises three main license types: an exclusive (where the owner refrains from using the mark during the term), a non‑exclusive, and a sole/exclusive territorial licence (exclusive rights for the licensee within a specified territory while the owner may license elsewhere). Essential elements are consent (offer and acceptance), the subject matter (the trademark right, which must be lawful and registrable), a lawful cause, and the mandatory written form. Practically, parties should specify scope of use, territory, quality control, payment and renewal terms to avoid disputes or invalidity where the mark is not registrable.
Effects of the Agreement and Parties' Obligations
The licensor must enable the licensee to use the mark as agreed, refrain from obstructing that use, and take necessary steps such as renewing registration to preserve the mark’s protection and reputation. The licensee must pay the agreed consideration, use the mark within contractual limits and protect trade secrets. While licensees commonly exercise enforcement measures against counterfeiting or unfair imitation, there is doctrinal debate whether they can litigate without an express contractual empowerment; parties are therefore advised to state enforcement powers explicitly in the agreement.
Termination, Procedural Limits and Relevant Case Law
A licence terminates on expiry of its agreed term and may end earlier by mutual consent, by invalidity for a fundamental defect, or by judicial termination for material breach. The law allows deposit of the written licence with the registrar and applies international obligations in protecting well‑known marks, including some foreign-registered or reputed marks. Local rulings have addressed distributor contractual rights and extended protection to famous marks; practitioners must consult the specific court decisions when assessing a particular dispute.
Legal notice
Notice: The content is general educational material based on the original source linked on the page and does not substitute review of the applicable statutory texts, amendments or deadlines, nor does it constitute legal advice. For binding guidance, consult a licensed Jordanian lawyer and review the official legal texts.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.