Use of name: Overview, definition, and example
What is the use of name?
The use of name refers to the permission or restriction regarding how and when a business, individual, or entity’s name can be used or referenced by others. In business agreements, this often involves guidelines on whether one party can use the name, logo, or trademark of another party in marketing, advertising, or other public-facing materials. The use of name clauses can specify how the name can be used, any restrictions on its use, and any legal consequences for unauthorized usage. This clause is especially important for branding, marketing, and intellectual property rights.
For example, a franchise agreement may grant the franchisee the right to use the franchisor’s name and logo in advertising, but only in a manner that aligns with the franchisor’s established brand guidelines.
Why is the use of name important?
The use of name is important because it protects the reputation and brand identity of businesses and individuals. Unregulated or unauthorized use of a name can lead to misrepresentation, confusion, or dilution of a brand. By having clear terms governing the use of a name, businesses can maintain control over their brand image and ensure that their name is not associated with products, services, or actions that do not align with their values or legal rights.
For businesses, controlling how their name is used helps protect intellectual property, maintains brand integrity, and prevents unauthorized commercial use.
Understanding the use of name through an example
Imagine a software company that licenses its proprietary software to other businesses. The licensing agreement may include a clause that allows the licensee to use the software company’s name in promotional materials, but only after receiving written approval from the software company. This helps ensure that the software company’s name is not misused or associated with inferior products or services.
In another example, a consulting firm may have a partnership agreement that grants one partner the right to use the company name in specific regions, but prohibits them from using the name in a way that could harm the brand or mislead potential clients.
An example of a use of name clause
Here’s how a use of name clause might look in a contract:
“The Licensee is granted the right to use the Licensor’s name, logo, and trademark solely in connection with the marketing and promotion of the licensed product, subject to the prior written approval of the Licensor. The Licensee agrees not to use the Licensor’s name in any manner that could damage the reputation or brand identity of the Licensor.”
Conclusion
The use of name clause is essential for controlling how a business or individual’s name is used in commercial contexts, ensuring that the name is only associated with activities or products that align with the brand's values. It helps maintain the integrity of a business’s reputation and intellectual property rights.
For businesses, understanding and incorporating a use of name clause in contracts is critical for protecting brand identity, managing how the name is used by third parties, and preventing unauthorized commercial use.
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.