Trademark Licensing

Case 1

Make a net profit of 1.3 billion RMB in just one year from trademark licensing? That’s not a joke — it’s NanJiren. It licensed its trademark to 1,839 suppliers, 10,311 distributors, and 13,258 retail stores. With the "NanJiren" trademark licensing business, it earned 1.3 billion RMB per year.

Case 2

In 2019, People’s Daily teamed up with Li-Ning for joint trademark licensing. They launched many co-branded fashion products.

Case3 Anta partnered with Coca-Cola for cross-brand co-branding. They rolled out a series of limited-edition running shoes.

Case 4

Hit Chinese comic IP Please Take My Brother Away! was licensed to KFC.

FAQ about Trademark Licensing

1. What is trademark licensing?

Trademark licensing means the trademark owner signs a contract to allow other parties to use its registered trademark within agreed limits.

2. What are the types of trademark licenses?

There are three types: exclusive license, sole license, and non-exclusive license. Under an exclusive license, even the trademark owner cannot use the trademark themselves.

简易注释： exclusive license 独占许可 sole license 排他许可 non-exclusive license 普通许可

3. Is trademark license registration required?

The license contract needs to be filed with the China National Intellectual Property Administration (CNIPA). Without filing, you can still use the license, but you cannot defend your rights against third parties who do not know about this license.

4. Costs of trademark licensing

• Ordinary trademarks: RMB 3,000 – 20,000 per year

• Well-known brands: RMB 20,000 – 100,000 per year

Or royalty based on sales volume:

• Normal OEM / private label for e-commerce: 3% – 5% of sales

• Famous brands: 5% – 10% of sales

5. Are there brand licensing platforms in China?

• 1688 Brand Station: https://pinpai.1688.com

• Alifish: https://ip.alibaba.com

• CCMG IP Platform: https://ccmgip.com

6. How long does a brand license usually last?

Most contracts are signed for 1 year and renewed annually. For long-term cooperation, contracts can be made for up to 5 years.

7. Can I sublicense the trademark to another party after I get the trademark license?

No, unless the license contract explicitly permits sublicensing.