On June 12, 1981, the U. T. Board of Regents approved a trademark protection and licensing program for the U. T. System. In 1983, the Office of General Counsel developed rules and regulations to administer the program (the Trademark Policy). Since the program has grown in importance and revenue generation and now requires some modification to and formal approval by the U. T. Board of Regents of the Trademark Policy, the Board adopted the U. T. System Trademark Policy as follows:

TRademark policy

In 1981, the Board of Regents of The University of Texas System approved a program to protect and license trademarks of its component institutions. That program included the following elements:

a. Authorization to file applications for state and federal registration of University trademarks, such as the names, seals, logos and mascots of all component institutions, in the name of the Board of Regents.

b. Approval of a standard trademark license agreement permitting commercial use of University trademarks on products with a royalty on the sale of such products.

c. Delegation of authority to execute trademark license agreements on behalf of the Board of Regents.

d. Authorization for component institutions to use royalties that exceed the expenses of registration and administration of licensing to establish appropriate scholarship programs.

The Regents' Rules and Regulations place responsibility for administering the trademark licensing program in the Office of General Counsel.

TRADEMARK LICENSING GUIDELINES

The standard trademark license agreement contains the following provisions:

License Grant--A nonexclusive right to use the licensed marks in the United States on and in connection with licensed products of quality acceptable to the Board of Regents.

Term of Agreement--Three (3) years unless licensee wants a shorter term.

Payments by Licensee--A license issue fee at the time the agreement is executed; a continuing royalty on all licensed products sold; and a minimum annual royalty.

Exemptions from Royalty Payments--There shall be no exemptions from royalty payments on licensed products, including those products sold to a University-owned entity by the licensee and products purchased solely for the purpose of resale, except as provided in these Guidelines.

Quarterly Reports--Licensees must submit quarterly reports stating the total sales of all licensed products for that period and remit at that time the amount of royalties due from those sales.

Delinquent Payments--Assessed a late charge at the maximum rate of interest permitted by law.

Right to Audit Licensees--To examine the licensee's books of account and records related to the licensed products to determine the accuracy of the statements submitted by licensees. If an examination reveals underpayment by more than five percent (5%) of the total due, the licensee shall bear the costs of the audit.

Default and Termination--If a default is not cured within thirty (30) days of notice, a notice of termination shall be served on licensee.

Sublicensing or Transferring Rights--No right to sublicense and any change or proposed change in the ownership or control of licensee's business must be provided to the Board of Regents.

Quality Control of Licensed Products--All licensed products shall be products of quality as determined by the Board of Regents or its representative. Licensees are required to furnish to the Board of Regents or its representative, for approval and free of cost, a sample of each licensed product before sale or distribution.

Packaging and Advertising of Licensed Products--All packaging and advertising bearing any licensed mark shall be subject to prior approval by the Board of Regents or its representative.

Indemnification by Licensee--Licensees are wholly responsible for all products manufactured or sold by them and must indemnify and hold harmless The University of Texas System, its Regents, officers, employees and agents for any liability, loss, damage, cost or expense attributable to any of licensee's products bearing the trademarks of any component institution of the System.

TRADEMARK USE RESTRICTIONS

To fully protect The University of Texas System trademarks so that they remain valuable assets for years to come, System registers the marks and manages them through licensing. These two steps would not be sufficient, however, if System licensed the marks for any and every proposed use. For example, some uses would harm the very reputation that the marks represent. In other cases, the nature of goods and services may pose such significant legal risks that they should not be licensed, and some uses may potentially harm the marks unless they are carefully controlled. To protect its marks, System has developed the following use restrictions:

The following uses will not be licensed:

Stationery--Business-size, letterhead paper using the name or seal of a component institution of The University of Texas System.

Alcoholic Beverages--Distilled alcohol liquors, wines and malt liquors.

Inherently Dangerous Products--Such as firearms, explosives, fuels and paints.

Obscene or Disparaging Products--Including, but not limited to, nude photographs, caricature poster art or designs that would tend to lower the reputation or degrade the goodwill of the University as represented by the trademarks.

Sexually Suggestive Products--Including, but not limited to, inappropriate slogans imprinted on clothing and the configuration of certain novelty items.

Health Related Products--All types.

Staple Foods, Meats and Natural Agricultural Products--All types.

Business Names and/or Logos--All types.

System marks licensed for the following uses are limited as described:

Services--Only in accordance with the special requirements of the Office of General Counsel applicable to services.

Academic Related Products--Only for the following types of publications:

1. Sports publications approved by the institutional president or designee, providing the licensee agrees to include the following disclaimer in the publication:

“Not an Official Publication of The University of Texas (component)”.

2. Literary works that generally provide historical information about and promote the goodwill of the U. T. System or component institution. System marks may be licensed for such use by permission letter after review by the appropriate institutional officers.

Advertising--System marks may be used in the following kinds of advertising, so long as the uses also conform to the special requirements of the Office of General Counsel contained in guidelines, checklists and interactive electronic forms applicable in each case. These are designed to help component institutions conform their agreements to standard expectations regarding both the form and substance of the agreements and the approval of ad copy and layout design.

1. Licensed product advertisements, pursuant to the terms of a trademark license agreement.

2. Informational, congratulatory or “team spirit” advertisements, pursuant to a permission letter for one-time only use.

3. Corporate advertisements that focus on the academic and athletic achievements of students and alumni of a component institution, pursuant to a permission letter for one-time only use with prior approval from the chief administrator or designee.

4. Corporate advertisements that utilize appropriate System trademarks in official programs sold or distributed at Intercollegiate Athletic events, pursuant to the terms of an Advertising Agreement.

5. Promotional activities utilizing appropriate System trademarks, pursuant to the terms of a Promotional License Agreement. Promotional activities are activities such as advertising or offering promotional products to further the growth, development, acceptance and/or sale of goods or services.

Last reviewed September 2000