How to License Your Trademark in Nepal

You can license a trademark in Nepal by giving written permission for another party to use your registered mark under clear commercial and quality conditions. The Department of Industry (DoI) administers trademark rights under the Patent, Design and Trademark Act 1965 (PDTA); a registered mark normally remains valid for seven years and is renewable.

Key Takeaways

Trademark licensing Nepal arrangements let the registered owner keep ownership while another business uses the mark on agreed goods or services. Sec. 21D of the PDTA recognises written permission to use a registered trademark, while the DoI remains the authority that maintains registration rights and records.

• A licence permits use of a registered mark; it does not transfer ownership to the licensee.
• Put every trademark licence agreement in writing before the other business starts using the brand.
• Limit use to the exact registered mark, NICE class, goods or services, territory, and agreed period.
• Include quality-control rights, because poor goods or services can damage your brand’s goodwill.
• Check that the registration is live, correctly owned, and renewed before signing a licence.
• Discuss DoI recordal or certificate endorsement requirements for the particular registration before filing documents.
• A licence cannot give rights beyond the owner’s registered trademark protection in Nepal.

What does trademark licensing mean in Nepal?

Trademark licensing means the owner authorises another person or company to use a registered wordmark, logo, or other trade mark without giving up ownership. Under Sec. 16 and Sec. 21D of the PDTA, unauthorised use is restricted, but written permission from the owner can make use lawful within its agreed scope.

The owner is the licensor. The permitted user is the licensee. Searches for a “registered user Nepal” arrangement usually concern this relationship: a business wants permission to use someone else’s brand while the trademark owner keeps title.

Brand licensing Nepal can support distribution, manufacturing, restaurant expansion, merchandise, or a franchise-style model. It is not a shortcut to owning another person’s mark. The licensee receives only the rights that the written agreement gives it.

How is a trademark licence different from an assignment?

A trademark licence keeps title with the registered owner, whereas an assignment transfers title to a new owner. The DoI records ownership of registered marks under the PDTA, so the distinction matters: a licence controls use for a period, while an assignment changes the person or company entitled to the registration certificate.

In practice, a licence suits an owner who wants a Pokhara operator, a distributor, or a manufacturer to build the brand without selling the asset. An assignment suits a genuine sale. Calling a sale a “licence” will not fix unclear ownership later.

Who can license a trademark in Nepal?

The person or entity shown as owner on the DoI registration should grant a trademark licence in Nepal. Nepal follows first-to-file rules: statutory trademark rights flow from the first valid registration, not simply from earlier use. A lapsed, cancelled, or wrongly owned registration creates serious risk for both parties.

Start by checking the owner name, class, mark image or spelling, registration status, and renewal position. You can search the public record through the Nepal trademark database, then compare the actual certificate and any ownership-transfer documents.

A company should ensure the right signatory approves the agreement. If a foreign owner licenses a Nepali company, it should use a Nepal-based agent or representative for DoI dealings. Nepal is not part of the Madrid System, so foreign trademark rights do not automatically cover Nepal.

Which NICE classes can a trademark licence cover?

A trademark licence can cover only the goods or services protected by the owner’s registered NICE Classification classes. NICE has 45 classes, and Nepal requires one application for one class under Sec. 18A. Licensing a mark in one class does not automatically authorise use in another class.

For example, a clothing label may hold Class 25 for clothing, while a shop using that label may need Class 35 protection for retail services. A café brand may use Class 43 for restaurant and catering services. The agreement should identify the relevant registration numbers and permitted goods or services precisely.

Use the NICE class finder before drafting the permitted-use list. If expansion will cross into new classes, consider fresh trademark registration in Nepal rather than relying on broad wording in a licence.

How do you prepare a TM licence agreement in Nepal?

You prepare a TM licence agreement Nepal businesses can rely on by matching its terms to the DoI registration, then setting real controls over use. Sec. 21D makes written permission central, while the DoI registration defines the mark, owner, and class that the agreement cannot exceed.

1. Verify the registered mark. Check the certificate, owner, NICE class, renewal date, and exact logo or wordmark.
2. Define the permitted use. State the goods or services, territory, sales channels, and whether the licence is exclusive, sole, or non-exclusive.
3. Set quality standards. Attach product specifications, approved packaging, menu standards, artwork rules, and an inspection or approval process.
4. Agree commercial terms. Record payment method, reporting, tax responsibility, audit rights, and what happens if payments are late.
5. Sign and address DoI formalities. Obtain proper corporate approvals, keep signed copies, and confirm whether recordal or endorsement should be sought for the registration.
6. Supervise use. Review samples, advertising, outlets, and online listings throughout the licence period.

A common mistake we see is granting “all products in Nepal” rights with no schedule. That wording may invite use outside the registered class and makes enforcement much harder. A useful agreement is specific enough that both sides know what they can and cannot do.

What terms should a Nepal trademark licence include?

A sound Nepal trademark licence should identify the registration, permitted use, quality controls, duration, and termination rights in plain terms. Because a trademark registration lasts seven years under Sec. 18D and renewal is governed by Sec. 23B, the licence should never outlast the owner’s valid registration without renewal planning.

Include the exact mark as registered, its registration details, permitted classes, territory, and approved form of use. Decide whether the licensee may use the TM symbol, but do not represent an unregistered mark as registered or use ® improperly.

Quality control deserves special attention. Give the licensor a right to approve labels, packaging, menus, advertising, suppliers, or product samples. Require the licensee to stop use promptly at termination and remove signage, stock labels, social-media references, and online marketplace listings.

Also cover ownership of improvements, customer data, confidentiality, indemnity, dispute resolution, and whether sublicensing is prohibited or tightly controlled. These are commercial choices, not one-size-fits-all clauses. This article is general information, not legal advice; obtain advice before signing a long-term deal.

Does the Department of Industry record trademark licences?

The DoI administers Nepal’s trademark register and certificate endorsements, but parties should confirm the current recordal requirements for their licence with the Department before filing. The PDTA clearly recognises written permission under Sec. 21D; it does not turn an informal verbal arrangement into a reliable record of permitted use.

Do not confuse a licence with a new trademark application. A fresh mark follows filing, DoI examination, publication in the Industrial Property Bulletin, a 90-day opposition window, registration, and certificate. A licence concerns an existing registration and should be handled according to the DoI’s current documentary practice.

Keep the signed agreement, proof of authority to sign, and copies of any DoI filing or endorsement together. If conflict develops, those records help show that the use was authorised and limited. For a proposed filing or dispute, our team can help through trademark licensing guidance.

What documents and costs should you plan for?

A licence file commonly needs the signed agreement, trademark registration certificate details, identity and company-authority documents, and a power of attorney where an agent acts. The DoI may ask for further documents depending on the owner, licensee, registration history, and the recordal or endorsement sought.

Foreign documents may need formalisation and translation suitable for Nepal use. Do not assume a foreign registration certificate alone proves Nepal rights. A foreign company needs direct national protection in Nepal, although a Paris Convention priority claim may be relevant during a fresh application.

Total cost depends on the number of trademark classes, DoI charges, document preparation, translation or notarisation needs, and professional work. A licence for one wordmark is different from a multi-class logo and franchise package. Use the trademark fee calculator for current registration-related estimates, or ask us for a current scope-based figure.

How long can a trademark licence last in Nepal?

A trademark licence lasts for the term agreed by the parties, but its practical value depends on the underlying DoI registration staying valid. Nepal trademark registrations run for seven years and can be renewed in further seven-year terms under Sec. 23B. A cancelled registration cannot support continuing licensed brand use.

Build renewal into the agreement. State who tracks the date, who pays the renewal-related costs, and what happens if renewal is missed. The owner should also ensure genuine use: Sec. 18C allows the DoI to cancel a registered mark that is not used within one year of registration.

What mistakes put a brand licensing deal at risk?

The biggest trademark licensing Nepal mistake is allowing use without a signed, specific agreement and ongoing owner control. The DoI can cancel a mark for non-use under Sec. 18C, while Sec. 16 protects registered marks from unauthorised use; both provisions show why informal arrangements create avoidable risk.

• Licensing a business name that has not been registered as a trademark in the relevant class.
• Assuming Office of the Company Registrar (OCR) company-name registration gives trademark protection.
• Letting a licensee alter the logo, spelling, colours, or goods list without approval.
• Failing to check for existing conflicts before launching a new licensed product line.
• Giving sublicensing rights without clear limits, approvals, and responsibility for quality.
• Forgetting termination steps, leaving old signs and online listings active after the relationship ends.

If another party applies for a similar mark, publication in the Industrial Property Bulletin is the point to assess opposition. The DoI process gives trademark opponents 90 days after publication. Our team can help assess a conflict and take action through trademark opposition and enforcement support.

What does a practical Nepal brand licensing example look like?

Imagine that “Himal Bites,” a fictional Kathmandu snack brand, owns a registered wordmark in Class 30 for packaged spice mixes. It licenses a Bharatpur producer to make and sell approved products under that mark. The owner keeps title, approves recipes and labels, and receives periodic sales reports under the written agreement.

The producer cannot put Himal Bites on a restaurant, clothing range, or unrelated bottled drink unless the owner has suitable registered protection and gives fresh permission. If the producer changes the chilli blend or uses poor packaging, the agreement lets the owner reject stock and terminate use.

That is the value of a properly scoped licence: expansion without losing control. Before entering a similar arrangement, run a conflict check, confirm the registration, and have the agreement reviewed against the actual business model.

What are the alternatives to licensing a trademark in Nepal?

Licensing is not always the right answer: an assignment transfers ownership, while direct use by the owner keeps all operations in-house. For a new brand, first file the trademark with the DoI; the normal application route includes examination, Industrial Property Bulletin publication, a 90-day opposition period, registration, and a certificate.

A distributor agreement may be enough where the distributor only resells genuine goods and does not present itself as a brand user or manufacturer. A franchise arrangement usually needs more detailed operational controls than a simple licence. If you want to sell the brand permanently, explore assignment rather than hiding a transfer inside a short document.

For underlying rights, read our guide to trademark registration in Nepal and check the official Nepal Law Commission legal materials. Treaty concepts such as the Paris Convention and TRIPS matter in cross-border planning, but they do not replace a Nepal registration.

In short: license a registered trademark, not a vague business name; put the permission and controls in writing; keep use inside the registered NICE classes; and protect the registration through renewal and active supervision.

People also search for

These related Nepal trademark questions help owners decide whether they need registration, a clearance search, a new class, or action against a conflicting mark at the DoI.

• Can I license my trademark in Nepal?
• How do I register a trademark in Nepal?
• What documents are required for trademark registration in Nepal?
• How long does trademark registration take in Nepal?
• How do I choose the right trademark class in Nepal?
• What is a confusingly similar trademark in Nepal?

Check the existing mark through our Nepal trademark database, explore trademark registration support if your protection needs expanding, and contact our team for help preparing a licence and confirming the right DoI approach.