A formal agreement on the coexistence of trademarks recognizes the rights of both parties to use the marks contained in the agreement for commercial purposes. The agreement may include a breakdown of the regions in which the parties to the agreement are allowed to use the mark, the methods for the use of the mark or the categories of goods and services for which the mark may be used (in conjunction with the international trademark registration system). [2] Keyword: #trademarktuesday, coexistence agreements, consent The purpose of a trademark coexistence agreement is that trademarks are often used in good faith by several companies. The lack of a formal agreement does not undermine any company using the brand, as is the case in different global regions. However, as businesses grow, overlaps may develop and both parties may have substantial rights to the use of the trademark. Courts may find that similar marks may affect competition in the market. Talk to a lawyer and make sure you understand all the effects of entering into a coexistence agreement before signing. In particular, if you have been approached by another company that wants to obtain your consent to register a similar trademark, ask a professional to help you decide if it is really in your best interest. In accordance with the provisions of this Agreement, a Party with an established (and generally registered) trademark takes a series of reciprocal obligations with a Party wishing to establish a new mark allowing both Parties to continue to use their marks. In some cases, the established party may require limited modifications to the categories of goods and/or services for which the most recent party wishes to use its mark in order to avoid inappropriate overlap and the risk of confusion.

Sometimes coexistence agreements take the form of a proactive consent agreement. In this regard, one party agrees to have the other register its similar mark with strict restrictions. For example, a company called XBoard might sell surfboards in Florida and not particularly care about a small Vermont company that makes a children`s board game called «XBoard.» They can be very happy to allow the Vermont company to register the «XBoard» brand as long as they stick to toys and stay out of the sporting goods market. A consent agreement between the two trademarks both avoids possible litigation and assists in the registration process. A trademark coexistence contract is a contract of legal quality that binds the signatories under certain conditions. It will set limits on how a trademark can be used (and often where) and affect how goods or services can be marketed. . . .