Short story about license agreement…

disney-Paperman-Full-Animated-Short-Film-2In order to conduct transference of the right to use trademark that has been registered on the territory of Ukraine one should complete the license agreement on the use of trademark. This agreement is signed between the licenser and licensee in written and can be registered in the statutory manner at the State Service of Intellectual Property of Ukraine if the licenser or licensee demands to do so.

In accordance with the statutory procedure of the license agreement registration at the national Registrar of Ukraine it is allowed to file simultaneously license agreement and sublicense agreement in favor of the third party. This makes the registration procedure shorter and simplifies the legal scheme and terms of trademark use for all parties.

One should also pay attention to those clauses in contract that regulate license fee payment (royalty). The amount of the latter may be determined by the parties individually, meaning that the amount of the royalty is up to their will.

Thus the royalty is stated to be a license fee payment with or without the right to award sublicense agreement. The royalty is also a payment that is settled in respect to the sublicense agreement. The royalty is VAT free. If the payment is settled for non-resident than the licensee withholds taxes on the repatriation; the basic stake is 15%, however it vary as it depends on the clauses of the agreement on the matters of avoidance of double taxation of the concrete state.

Although, generally the holder of the intellectual property object governs royalty stake. However it is obvious that positive experience of the IP object holder would help the user to patch his business up positively and successfully.

Tatiana Sardelli, Victoria Efimova

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