A trademark license agreement is a contract by which a company owning a trademark authorizes another party to use that trademark under specific terms established in the contract. This type of contract allows a third-party company to market products that are not related to the original trademark but bear its name under license. For example, cartoon characters are often authorized to appear on clothing, stationery, or children’s toys through this licensing process. This is called “merchandising.” The main objective of a trademark license is to increase sales or prices by capitalizing on the image and reputation of the brand that granted the license. Generally, a license is granted in exchange for the payment of a sales commission and a guarantee of a certain minimum volume. Due to their complexity, drafting license agreements may require the involvement of specialized professionals. Excessive use of trademark licenses can damage the brand’s value and make it commonplace. Some luxury brands have seen their appeal diminish due to the misuse of licenses. It is important to distinguish brand licensing agreements from other types of commercial agreements.