Marks: Overview, definition, and example
What are marks?
Marks refer to trademarks, service marks, logos, brand names, or other identifiers that distinguish a business, product, or service. They are legally protected symbols, words, or designs used to establish brand identity and prevent unauthorized use by others. In contracts, marks clauses define how, when, and by whom these identifiers can be used.
For example, a franchise agreement may allow a franchisee to use the company’s trademarked logo while operating under the brand’s guidelines.
Why are marks important?
Marks protect brand identity and intellectual property by ensuring that only authorized parties can use them. Unauthorized use or misuse of marks can lead to brand dilution, consumer confusion, or legal disputes.
For businesses, including marks clauses in contracts ensures that their logos, brand names, and other identifiers are used correctly, preventing infringement and maintaining brand consistency across different markets.
Understanding marks through an example
A software company enters into a reseller agreement, allowing a third party to distribute its products. The contract includes a marks clause, stating that the reseller can use the company's logo and brand name for marketing, but only in approved advertising materials. This ensures the brand is represented consistently and prevents unauthorized modifications.
In another scenario, a sports apparel manufacturer licenses its brand name and logo to a retailer. The agreement specifies that the retailer can only use the marks on approved products and in authorized locations. If the retailer sells unapproved merchandise with the brand’s logo, they would be in violation of the contract.
An example of a marks clause
Here’s how this type of clause might appear in a contract:
“The Licensee is granted a non-exclusive, revocable right to use the Marks solely in connection with the marketing and sale of the Licensed Products. The Licensee shall not alter, modify, or use the Marks in a manner inconsistent with the Brand Guidelines provided by the Licensor. Unauthorized use of the Marks shall constitute a material breach of this Agreement.”
Conclusion
Marks are essential for brand protection and recognition, ensuring that logos, trademarks, and other brand identifiers are used correctly and legally. By including marks clauses in contracts, businesses can safeguard their intellectual property, maintain brand consistency, and prevent unauthorized use that could harm their reputation.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.