Editing License (section)

== Trademark and brand licensing ==
{{Main|Brand licensing}}
A licensor may grant permission to a licensee to distribute products under a [[trademark]]. With such a license, the licensee may use the trademark without fear of a claim of trademark infringement by the licensor.
The assignment of a license often depends on specific [[contractual terms]]. The most common terms are, that a license is only applicable for a particular geographic region, just for a certain period of time or merely for a stage in the [[value chain]]. Moreover, there are different types of fees within the trademark and brand licensing. The first form demands a fee independent of [[sales]] and [[profit (accounting)|profits]], the second type of license fee is dependent on the productivity of the licensee.

For example, [[McDonald's]] licenses their trademark such as the "[[Golden Arches]]" or the "[[Big Mac]]", but the licenses gives McDonald's a right to impose strict quality standards to their franchisees as they can take back the right to the trademark if they do not meet McDonald's standards.<ref>{{Cite book |last=Bagley |first=Constance E. |url=https://www.worldcat.org/oclc/953710378 |title=The entrepreneur's guide to law and strategy |date=2018 |others=Craig E. Dauchy |isbn=978-1-285-42849-9 |edition=Fifth |location=Boston, MA |oclc=953710378}}</ref>

When a licensor grants permission to a licensee to not only distribute, but manufacture a patented product, it is known as [[licensed production]].