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The contract must then be signed and approved by both the trademark owner and the manufacturer before becoming legally valid. This agreement is essential evidence – which is also valid in court – to ensure that the component protected by trademark law is not copied and produced illegally. Now let`s take a look at the details contained in this agreement: a license agreement between a trademark holder and a manufacturer is an official document that states that the manufacturer of a product is authorized to manufacture the product by the company or person who protected it with the trademark. However, the trademark owner may choose the terms of the license of this Agreement. Let`s understand the purpose of this document by an example: If ABC Industries wants to manufacture a simple mechanical component that will be useful for a given machine, but sir. M has already obtained the trademark license for this particular mechanical component. In this case, ABC Industries must obtain a license agreement with Mr. . M and to enter into an agreement stipulating that ABC Industries has only the rights to manufacture the mechanical component in question for a customer in question and only in precise figures..

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