Trademark Coexistence Agreement

What is a Trademark Coexistence Agreement?

A Trademark Coexistence Agreement is a legal contract that is typically entered into by two businesses that have similar or potentially overlapping trademarks.

This agreement allows both businesses to continue using their respective trademarks without interfering with or infringing upon each other's legal rights. It is generally used when each party has the right to use a similar mark and neither party wants to change or stop using the mark.

What are the benefits of creating a Trademark Coexistence Agreement?

1. Prevents Litigation: These agreements are often used to prevent costly and time-consuming trademark disputes and litigation. By agreeing to terms that allow both businesses to coexist peacefully, the parties can avoid legal battles over trademark rights.
2. Clarifies Rights: The agreement will explicitly lay out the rights of each party, including the geographic areas, industries, or product lines where each party can use the trademark. This can prevent confusion and disputes down the line.
3. Business Continuity: Without such an agreement, one company might have to stop using a trademark, which could lead to significant losses, including rebranding costs and loss of brand recognition. This agreement ensures that both businesses can continue operating without disruption.
4. Customer Clarity: By clearly delineating where and how each trademark can be used, the agreement can help prevent customer confusion. This is particularly important if the businesses operate in similar industries or regions.
5. Enables Collaboration: In some cases, the agreement might not just allow the businesses to coexist but also open up possibilities for collaboration, such as cross-promotion or partnership opportunities.