Court cases highlight product liability for licensors
A common objective of a brand owner when entering into a
licensing agreement is to ensure that its licensee assumes all
responsibility for manufacturing the licensed products and all
liability for consequences as a result thereof. While the
typical trade mark licence includes certain indemnification
provisions aimed at ensuring that the licensor achieves this
objective, a few recent court decisions have highlighted
instances where such standard indemnification provisions do not
sufficiently protect licensors. Such decisions reveal an
emerging issue with respect to product liability that brand
owners engaged in licensing their trade marks must pay careful
attention to, namely the possibility that they will be held
liable for injuries resulting from the...
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