# Non-Exclusive Trademark Licenses: A Practical Guide A growing business may license its brand to others or seek permission to use another company's brand. Trademark licensing provides the framework for these arrangements. Source: https://www.iplexlaw.co.kr/en/blog/1422478 HOME / NEWS & INSIGHTS NEWS & INSIGHTS Non-Exclusive Trademark Licenses: A Practical Guide A growing business may license its brand to others or seek permission to use another company's brand. Trademark licensing provides the framework for these arrangements. Trademarks 2026.03.10 published IPLEX 6 min read Hello, this is IPLEX IP Law Firm. As your business expands, you may license your brand to others or use another company's brand. A key concept in these arrangements is the non-exclusive trademark license. Non-exclusive trademark licensing . A trademark is not just a name or logo. It is a core asset directly linked to consumer trust. . Licensing arrangements therefore require careful planning, even when the owner does not use the trademark directly. This article covers non-exclusive trademark licenses, including agreements, registration and use. What is a non-exclusive trademark license? A non-exclusive trademark license is a permission for a third party to use the owner's trademark within an agreed scope. Ownership remains with the trademark owner. The owner may continue using the trademark and may authorize multiple businesses to use the same mark. . For this reason, non-exclusive trademark licenses are widely used in Franchise, License, OEM Business and related business arrangements. Comparison with exclusive licenses An exclusive trademark license grants the right to use a mark within a defined scope exclusively to one licensee. Within that scope, even the trademark owner cannot use the mark. A non-exclusive license, by contrast, allows the owner to continue using the mark and permits Non-exclusive use by multiple licensees. Businesses often choose this model to expand while retaining control of their brands. Category Non-exclusive license Exclusive license Exclusivity Non-exclusive Exclusive Use by the trademark owner possible Not permitted within the exclusive scope Allow multiple users possible Not permitted within the exclusive scope Main Use Cases Franchise, License, OEM Sole Brand Operations Registration Optional; recommended for enforceability against third parties Required Legal nature of non-exclusive trademark licenses A non-exclusive trademark license leaves ownership with the trademark owner and gives the licensee a contractual right to use the mark within the agreed scope. The licensee cannot dispose of the trademark right and generally cannot independently bring a trademark infringement claim. The license is therefore a right to use the mark under the owner's management and control. rather than ownership of the design right itself. Key characteristics of non-exclusive trademark licenses 1. Use by a licensee can maintain the trademark registration In Korea, a trademark registration may be challenged for non-use if the mark has not been used for three consecutive years without justifiable grounds. Even when the owner does not use the mark personally, qualifying use by a licensee can count as use of the registered mark. Documenting such use Use by the trademark owner can therefore be an important defense against non-use cancellation. 2. The owner's responsibility for quality control and supervision Quality control is central to trademark licensing. The owner should properly supervise the quality of the licensee's goods and services. Inadequate supervision can weaken distinctiveness, mislead consumers and, in serious cases, expose the registration to cancellation. 3. Licensing to multiple businesses A non-exclusive license allows several businesses to use the mark and Supports brand expansion . As the number of licensees grows, contract management and quality control become more important. When granting a non-exclusive trademark license Key contractual terms The majority of disputes occur under unclear contractual terms. The following must be specified in the contract. Specified goods and services: Clearly identify the goods or services for which use is permitted, such as footwear. Territory, term and manner of use: Specify the sales territory, license term and permitted online and offline uses. Quality Control: Specify sample inspection rights and the licensee's duty to follow manufacturing and quality guidelines. Restrictions on sublicensing: Prohibit sublicensing to third parties without the owner's consent. Processing after termination of contract: Require the licensee to stop using the mark, remove branded signs and handle remaining inventory as agreed after termination. Non-exclusive trademark licenses and registration A non-exclusive trademark license takes effect by agreement. Registration is important for making the license enforceable against third parties. If the trademark is later assigned to a third party, an unregistered license may be difficult to assert against the new owner. For practical protection, registration is strongly recommended. . How to register a non-exclusive trademark license Required Documents 1 Application for registration of the license 2. License agreement or written authorization 3. Seal certificate of the registration obligor, issued within the preceding six months ④ Consent form, where a co-owner's consent is required registration fee Total payment : KRW 43,000 Professional fees: Vary by firm. Common misunderstandings in practice “Can the licensee change the trademark freely?” → Changes outside the agreement or misuse that alters the mark's character may breach the agreement and create grounds for cancellation of the trademark registration. “Is quality control merely a clause on paper?” The Trademark Act requires owners to exercise due care. Misuse by a licensee that confuses consumers can expose the trademark registration itself to cancellation. “Is a contract alone sufficient?” → A license can be valid between the parties by agreement, but registration is important for asserting it against a subsequent owner or other third party. A business perspective Non-exclusive trademark licensing can be a powerful business tool when used strategically. Franchise Business: To maintain a consistent brand image, a non-exclusive trademark license should combine compliance with a quality control manual and a right to conduct regular inspections. OEM/License Business: A company with a strong brand can earn licensing revenue without its own manufacturing facilities. An appropriately drafted termination clause can help protect the brand if manufacturing quality deteriorates. Risk Management: Licensing supports expansion without direct operation of every business. Qualifying use by licensees can also help defend a trademark against non-use cancellation. Trademark licensing shares a brand's reputation and value. Careful agreements and ongoing supervision are essential to protect that value. Read the Korean source This article reflects the information available when it was published. Contact us to discuss your circumstances. Discuss this topic ↗ All articles Related service: Designs & trade marks ↗ ON THIS PAGE What is a non-exclusive trademark license? Comparison with exclusive licenses Legal nature of non-exclusive trademark licenses Key characteristics of non-exclusive trademark licenses Essential terms in a non-exclusive trademark license agreement Non-exclusive trademark licenses and registration Common misunderstandings in practice A business perspective TALK TO IPLEX Discuss your IP questions We consider your technology and business needs together. ↗ Contact us Newer Non-Exclusive Design Licenses: A Practical Guide ↗ Older Beijing SUNHOPE visit: Korea–China IP cooperation ↗ Related insights Trademarks 2026.10.01 TikTok for confectionery: dilution can prevent registration in Korea Korean Patent Court case 2025Heo10379 explains why different goods and later commercial success did not overcome the reputation and distinctiveness of TikTok. ↗ Read article Trademarks 2026.09.30 Can Fear of a Trade Mark Dispute Justify Non-Use? 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The 010PAY decision, 2025허10405, considers actual transactions, revenue and the proper subject of Korean trade mark scope proceedings. ↗ Read article - https://www.iplexlaw.co.kr/en - https://www.iplexlaw.co.kr/en/blog/category/trademark - https://www.iplexlaw.co.kr/forum/view/1422478 - https://www.iplexlaw.co.kr/en/contact - https://www.iplexlaw.co.kr/en/blog - https://www.iplexlaw.co.kr/en/ip-solutions/trademark#related-insights - https://www.iplexlaw.co.kr/en/blog/1422478#section-1 - https://www.iplexlaw.co.kr/en/blog/1422478#section-2 - https://www.iplexlaw.co.kr/en/blog/1422478#section-3 - https://www.iplexlaw.co.kr/en/blog/1422478#section-4 - https://www.iplexlaw.co.kr/en/blog/1422478#section-5 - https://www.iplexlaw.co.kr/en/blog/1422478#section-6 - https://www.iplexlaw.co.kr/en/blog/1422478#section-7 - https://www.iplexlaw.co.kr/en/blog/1422478#section-8 - https://www.iplexlaw.co.kr/en/contact - https://www.iplexlaw.co.kr/en/blog/1422500 - https://www.iplexlaw.co.kr/en/blog/visit-sunhope-2026 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1782 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1782 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1776 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1776 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1771 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1771