Trademark Licensing Protection Act of 2019

To amend the Trademark Act of 1946 to provide that the licensing of a mark for use by a related company may not be construed as establishing an employment relationship between the owner of the mark, or an authorizing person, and either that related company or the employees of that related company, and for other purposes. 1. Short title This Act may be cited as the Trademark Licensing Protection Act of 2019 2. Safe harbor Section 5 of the Act entitled An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes Trademark Act of 1946 15 U.S.C. 1055 (1) in the first sentence, by striking Where a (a) In general Where a ; and (2) by adding at the end the following: (b) Consistency in use (1) Definitions In this subsection— (A) the term authorizing person (B) the term communicate (C) the term employment relationship (D) the term exercise control over the mark (i) includes, but is not limited to, requiring a related company to— (I) complete training conducted for the purpose of preserving or enhancing goodwill, a reputation, uniformity, or the expectation of the public with respect to the nature and quality of goods or services associated with a mark; or (II) communicate with the owner of a mark, or an authorizing person, with respect to preserving or enhancing goodwill, a reputation, uniformity, or the expectation of the public with respect to the nature and quality of goods or services associated with a mark; and (ii) does not include any personnel or employment policy or procedure that is communicated— (I) by— (aa) the owner of a mark; or (bb) an authorizing person; and (II) to— (aa) a related company with respect to the mark; or (bb) any employee of a related company described in item (aa); (E) the term franchise (i) in section 436.1(h) of title 16, Code of Federal Regulations, as in effect on the date of enactment of this subsection; or (ii) under an applicable State franchise law; (F) the term franchisee (i) in section 436.1(i) of title 16, Code of Federal Regulations, as in effect on the date of enactment of this subsection; or (ii) under an applicable State franchise law; (G) the term franchisor (i) in section 436.1(k) of title 16, Code of Federal Regulations, as in effect on the date of enactment of this subsection; or (ii) under an applicable State franchise law; and (H) the term personnel or employment policy or procedure (i) any contractually retained right of the owner of a mark, or an authorizing person, to directly control a related company’s hiring, promotion, firing, or discipline of the employees of such related company; (ii) any contractually retained right of the owner of a mark, or an authorizing person, to directly control a related company’s rates of pay, including wages and fringe benefits; (iii) any contractually retained right of the owner of a mark, or an authorizing person, to directly control a related company’s assignment of employee work schedules; (iv) any contractually retained right of the owner of a mark, or an authorizing person, to directly control collective bargaining procedures or labor relations; and (v) any contractually retained right of the owner of a mark, or an authorizing person, to directly supervise the employees of a related company. (2) Applicability For the purposes of the National Labor Relations Act ( 29 U.S.C. 151 29 U.S.C. 201 (A) The licensing of the mark for use by that related company or the employees of that related company. (B) Any exercise of control over the mark by that owner or authorizing person, as applicable— (i) with respect to the use of the mark by that related company or the employees of that related company; and (ii) for the purpose of preserving or enhancing goodwill, a reputation, uniformity, or the expectation of the public with respect to the nature and quality of goods or services associated with the mark. . 3. Applicability This Act, and the amendments made by this Act, shall not apply to any proceeding before the National Labor Relations Board that is commenced before the date of enactment of this Act.

Summary: Trademark Licensing Protection Act of 2019 This bill establishes that licensing a trademark or trademark registration for use by a related company does not contribute to establishing an employment relationship between the licensor and the licensee, nor does a licensor's exercise of control over how the licensed trademark is used.