In the simplest case, any agreement between two (or sometimes more) parties is that, when they operate, either of them can do so without fear of violating the intellectual property rights of the other. or whenever you think they want to sue you for the same reason, a coexistence agreement can be a good idea. Under the contract law of each country in the UK, a coexistence agreement is generally mandatory if it consists of a serious commitment from each company which, in return for some form of benefit, will be undertaken by the other. This reciprocity of benefits is lacking when one company simply agrees to allow the other to act under a particular name and receives nothing in its favour; in such cases, the company may withdraw its consent. That is why it is important to show that both sides clearly benefit from the coexistence agreement. If you think this might not be the case, a brief consultation with a professional advisor will soon resolve the matter. In principle, coexistence agreements allow companies to protect their own legal interests and organise their own business destiny, instead of leaving contentious cases to a court decision that can be costly, unfavourable and slow. However, you should not enter into a coexistence agreement in the following situations: further professional advice is usually not required as part of a simple coexistence agreement. An exception may be, in a rare case, where a mark which is the subject of a coexistence agreement may, at a given time, be used as collateral for a loan. It may be necessary to consult a financial advisor. If you don`t hire a lawyer, it may be helpful to start with a coexistence agreement from the bar in which you can fill in the gaps. We have provided a checklist in point 7 below.
A good proposal is that, when signing the agreement, the parties agree on a future date on which they will speak to each other. This conversation has two purposes: a trademark coexistence agreement can be used if the holders of distinct, similar or identical marks, likely to cause confusion, agree to clarify the circumstances in which the respective marks may be used and/or registered in order to reduce the likelihood of confusion, settle disputes between them and/or avoid future disputes. . . .