Trademark License Agreement

Licenses use of a trademark from owner to licensee — territory, channels, quality control, royalties, term.

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TRADEMARK LICENSE AGREEMENT

This Trademark License Agreement (this "Agreement") is entered into and effective as of May 11, 2026 (the "Effective Date") between:

  LICENSOR: Apexa Robotics, Inc.
  Address:  1209 Orange Street, Wilmington, DE 19801

  LICENSEE: PNW Distribution Partners LLC
  Address:  888 SE Division Street, Portland, OR 97202

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1. THE MARK
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This Agreement covers the following trademark(s) (collectively, the "Mark"):

  APEXA® and the Apexa stylized logo
  USPTO Reg. No. 7,123,456 (Class 7, Class 9, Class 42)

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2. GOODS / SERVICES
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The Mark is licensed for use only in connection with the following goods and services (the "Goods/Services"):

Class 7: Industrial robots and robotic arms.
Class 9: Software for autonomous robotic systems.
Class 42: SaaS for warehouse automation; technical consulting.

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3. GRANT OF LICENSE
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Subject to the terms hereof, Licensor grants Licensee a license to use the Mark in connection with the Goods/Services in the United States and Canada (the "Territory"), through the channels set forth in Section 5.

Exclusivity: NON-EXCLUSIVE — Licensor reserves the right to use the Mark itself and to grant other licenses in the Territory.

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4. TERM
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The initial Term begins on the Effective Date and continues for 5 years. The Agreement automatically renews for successive 1-year terms unless either party provides 90 days written notice of non-renewal.

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5. CHANNELS OF TRADE
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Wholesale distribution to industrial customers in the Pacific Northwest (OR, WA, ID, MT). Direct-to-business sales only; no consumer retail. No e-commerce sales outside the licensed territory.

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6. ROYALTIES
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Royalty: 5% of Licensee's Net Sales (gross sales minus returns, discounts, and shipping).
Minimum annual royalty: $25,000 (year 1), $50,000 (year 2+).
Payment: quarterly, within 30 days of quarter end, with detailed sales report.
Audit right: Licensor may audit Licensee's books once per year on 30 days notice.

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7. QUALITY CONTROL (REQUIRED — ABANDONMENT RISK IF OMITTED)
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Licensor must exercise reasonable quality control over Licensee's use of the Mark. Failure to do so may result in "naked licensing," which causes the Mark to be deemed abandoned under federal trademark law. Accordingly:

Licensee shall maintain quality of goods/services consistent with Licensor's standards as set forth in the attached Brand Guidelines (Exhibit A).
Licensee shall submit samples of all marketing materials, packaging, and product labels to Licensor for written approval prior to use. Licensor shall respond within 10 business days; failure to respond constitutes approval.
Licensor may inspect Licensee's operations on 14 days notice during business hours, twice per year.
Licensee shall not modify the Mark or use it in any manner that disparages Licensor.

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8. OWNERSHIP AND GOODWILL
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8.1 Ownership. The Mark is and remains the sole property of Licensor. This Agreement grants no ownership rights in the Mark to Licensee. All goodwill arising from Licensee's use of the Mark inures to the benefit of Licensor.

8.2 No Challenge. Licensee shall not, during the Term or thereafter, challenge the validity, ownership, or enforceability of the Mark or Licensor's rights therein.

8.3 Marking. Licensee shall use the Mark with appropriate notice (® for registered marks; ™ for unregistered marks) and shall include the legend "[Mark] is a registered trademark of [Licensor], used under license."

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9. INFRINGEMENT
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9.1 Notice. Licensee shall promptly notify Licensor of any actual or suspected infringement of the Mark.

9.2 Enforcement. Licensor has the sole right to bring infringement actions. Licensee shall cooperate at Licensor's expense.

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10. REPRESENTATIONS AND WARRANTIES
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10.1 Licensor represents that it owns the Mark and has authority to grant this license. Licensor makes no other representation or warranty, including no warranty that the Mark does not infringe third-party rights.

10.2 Licensee represents that it has authority to enter into this Agreement and will comply with applicable law.

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11. INDEMNIFICATION
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Licensee shall indemnify Licensor for any claim arising from Licensee's use of the Mark inconsistent with this Agreement or from Licensee's products/services.

Licensor shall indemnify Licensee for any claim that Licensee's authorized use of the Mark infringes a third party's prior trademark rights.

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12. TERMINATION
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12.1 For Cause. Either party may terminate on 30 days written notice for material breach not cured within the notice period.

12.2 Immediate. Licensor may terminate immediately for: (a) Licensee insolvency or bankruptcy; (b) failure to maintain quality standards; (c) unauthorized assignment.

12.3 Effect of Termination. Upon termination, Licensee shall: (a) immediately cease all use of the Mark; (b) return or destroy all materials bearing the Mark; (c) pay all accrued royalties.

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13. ASSIGNMENT
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Licensee may not assign this Agreement, in whole or in part, without Licensor's prior written consent. Any attempted assignment without consent is void. Licensor may assign freely.

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14. GOVERNING LAW; DISPUTE RESOLUTION
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This Agreement is governed by the laws of the State of Delaware and the federal Lanham Act (15 USC §§1051 et seq.). Disputes shall be resolved in state or federal court located in Delaware.

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15. ENTIRE AGREEMENT
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This Agreement constitutes the entire understanding between the parties regarding the Mark and supersedes all prior agreements.

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EXECUTION
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LICENSOR:                                    LICENSEE:

_______________________________            _______________________________
Apexa Robotics, Inc.                PNW Distribution Partners LLC

By:    _____________________________         By:    _____________________________
Title: _____________________________         Title: _____________________________
Date:  _____________________________         Date:  _____________________________

Exhibit A — Brand Guidelines (attached separately)
Exhibit B — Specific Countries (if Territory = "specific")

About this template

A trademark license is the agreement that lets another party use your brand. The single most-important provision — and the one most often skipped — is QUALITY CONTROL. Federal trademark law (Lanham Act, 15 USC §§1051-1141n) requires the licensor to exercise reasonable quality control over the licensee's use of the mark. Failure to do so is "naked licensing," and it causes the licensor to lose ownership of the mark — abandonment by operation of law. Famous cases like Eva's Bridal (Eva's Bridal Ltd. v. Halanick Enterprises, 7th Cir. 2011) and Barcamerica (Barcamerica Int'l USA Trust v. Tyfield Importers, 9th Cir. 2002) demonstrate the consequence: the trademark is abandoned even though the parties intended a license. The quality-control provision must be MORE than boilerplate — it should specify (a) what standards apply (often via brand guidelines exhibit), (b) approval rights for marketing materials and product, (c) inspection rights for licensee operations, (d) right to terminate for failure to maintain quality. The licensor must also actually exercise these rights in practice. Other critical areas: (1) Exclusivity scope — exclusive vs. sole vs. non-exclusive, with territory/channel breakdown. (2) Royalty structure — typical rates 3-8% of net sales for consumer goods, 1-3% for high-volume tech, with minimum annual royalties to ensure licensee genuinely commercializes. (3) Sublicensing — generally prohibited without consent; licenses are personal trust relationships. (4) Term and termination — 3-10 years initial term with renewal options is typical; immediate termination rights for quality failures, insolvency, and unauthorized assignment. (5) Marking — proper trademark notice (® for registered, ™ for unregistered) and disclosure ("used under license") protects the mark and notifies the public. (6) Trademark prosecution coordination — who files for new registrations in licensed territories? Who pays maintenance fees? (7) Infringement enforcement — usually licensor's sole right, with licensee cooperation; sometimes licensee gets right to sue if licensor declines. State considerations: while trademark is governed by federal law (Lanham Act), the contract is governed by state law. Delaware and New York are common choices for IP transactions. Some states have specific franchise laws (California Franchise Investment Law, New York General Business Law §681 et seq.) that may apply if the license includes business-format elements (operations manual, training, marketing support) — a "trademark license" can become a "franchise" for regulatory purposes, triggering disclosure and registration requirements. For consumer-facing licenses with substantial business-format elements, consult franchise counsel before signing. International: the Madrid Protocol provides for international trademark registration; licenses across borders should reference the relevant filings and consider local licensing/registration requirements (some countries require trademark licenses to be recorded with the local IP office to be enforceable). Use this template for: brand-extension licenses (clothing, accessories, books), distribution-partner licenses, channel-specific licenses, and licenses to subsidiaries or affiliates. For high-value licenses (>$500K in royalties, master licensees, or franchise-like arrangements), engage trademark and franchise counsel.

When to use it

  • Licensing your trademark to a manufacturer, distributor, or channel partner.
  • Licensing brand-extension products (a tech-company licensing its name to apparel).
  • Licensing within a corporate group (parent licensing to subsidiaries).
  • Settlement of trademark disputes (coexistence agreement that includes a license).
  • International expansion via local-partner licensing.

What to include

  • Identification of the mark with USPTO registration number.
  • Goods/services covered (matching USPTO classes).
  • Territory and channels of trade.
  • Exclusivity (exclusive / sole / non-exclusive).
  • Royalty structure with minimum annual royalties.
  • QUALITY CONTROL (essential — naked licensing risk).
  • Term, renewal, and termination rights.
  • Indemnification (mutual).

Frequently asked

Naked licensing occurs when a trademark licensor fails to exercise quality control over the licensee's use of the mark. Federal trademark law (Lanham Act) treats this as abandonment — the licensor loses ownership of the mark by operation of law. The Eva's Bridal case (7th Circuit, 2011) and Barcamerica case (9th Circuit, 2002) are the leading examples. Always include meaningful quality-control provisions (approval rights, inspection rights, brand guidelines) AND actually exercise them in practice.
⚠ Legal disclaimer. Trademark licenses are governed by federal trademark law (Lanham Act, 15 USC §§1051-1141n) and state contract law. Quality control is REQUIRED to avoid naked-licensing abandonment. Trademark licenses with substantial business-format elements may constitute franchises under the Federal Franchise Rule (16 CFR §436) and state franchise laws (CA, NY, and ~14 others), triggering disclosure and registration requirements. International licenses may require recording with foreign IP offices. For high-value licenses (>$500K royalties), master licenses, or franchise-like arrangements, engage trademark and franchise counsel. USPTO trademark search at uspto.gov/trademarks. Not legal advice.
Jurisdiction: United States — Lanham Act 15 U.S.C. §§1051-1141 (esp. §1055 use by related companies; §1060 assignment of marks); state trademark dilution / unfair competition. Naked-license doctrine (failure to maintain quality control voids the mark) — Stanfield v. Osborne Industries, 52 F.3d 867 (10th Cir. 1995); FreecycleSunnyvale v. Freecycle Network, 626 F.3d 509 (9th Cir. 2010). Bankruptcy: 11 U.S.C. §365(n) protects licensee on debtor licensor rejection; Mission Product Holdings v. Tempnology, 587 U.S. 370 (2019).
Last reviewed: 2026-05
Reviewed by ScoutMyTool — consult a licensed attorney for binding use.

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