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Standing Committee Gives Green Light to Guidelineson Trademark Licensing

Geneva, April 4, 2000
Press Updates UPD/2000/95

Members of the Standing Committee on the Law of Trademarks, Industrial Designs and Geographical Indications (SCT) have agreed on a set of measures to simplify and harmonize procedures relating to trademark licenses. This meeting, held under the auspices of the World Intellectual Property Organization (WIPO) from March 27 to 31, 2000, adopted by consensus a Joint Recommendation Concerning Trademark Licenses which is to be submitted for formal approval by member states at the September 2000 meeting of the WIPO Assemblies.

The proposed joint recommendation represents a series of guidelines which set out a maximum list of indications and elements that may be required by national or regional authorities with respect to a request for recordal or for cancellation or amendment of the recordal of a license. These measures are of significance in countries where the national trademark legislation requires that details of licensing agreements are formally registered with the national authorities.

Representatives approved the proposed Joint Recommendation Concerning Trademark Licenses on the understanding that this matter would be formally considered in future negotiations relating to the revision of the Trademark Law Treaty (TLT).

The proposed joint recommendation complements the TLT insofar as it deals specifically with the simplification and harmonization of procedures relating to trademark licenses. This subject is not covered by the TLT which was adopted in October 1994 and entered into force on
August 1, 1996. Twenty five countries are party to the treaty today.

Trademarks and service marks are increasingly marketed on a global scale. Protection of these marks, however, can only be obtained on a national or regional level. The procedures required by national or regional offices differ greatly from country to country and the formal requirements that have to be complied with are, in some cases, costly and time consuming.

The conclusion of the TLT was a timely and cost-effective solution to this problem. The application of the treaty serves to streamline and harmonize the formal requirements set by national and regional offices for the filing of national or regional trademark applications, the recordal of changes and the renewal of trademark registrations. In this way, applicants benefit from cost savings and also have easier access to worldwide trademark protection.

The proposed joint recommendation is part of WIPO's policy to adapt to the rapid pace of change in the field of industrial property by considering new options to accelerate the development of international harmonized common principles and rules. This approach is designed to complement the traditional and more lengthy treaty-based approach to international standard-setting. While not legally binding, the recommendation, once adopted, will have strong persuasive authority. The adoption of the proposed joint recommendation does not preclude the provisions from being incorporated into a future revision of the TLT.

The SCT also considered the broader issue of the use of trademarks and other distinctive signs on the Internet and the possible consequences for international trademark law. The problems associated with the use of trademarks on the Internet stem from the territorial nature of intellectual property rights as well as the global reach of the Internet which results in a single act having effect simultaneously in practically all the jurisdictions in the world. The question of whether it is necessary to improve existing standards to address this problem will be the subject of on-going discussion by Standing Committee members.

The SCT was established by WIPO member states in March 1998 to assist in setting priorities, coordinating and streamlining the Organization's on-going work in the progressive development of the international law of trademarks, industrial designs and geographical indications.

The next session of the SCT is scheduled to take place in Geneva from September 11 to 15, 2000.

For additional information, please contact the Media Relations and Public Affairs Section at WIPO:

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