Naked License Law and Legal Definition

Naked license is licensing a trademark without the necessary controls over the use of the mark. When a trademark is licensed without specifying the quality of the goods to be sold it is called naked licensing. In such conditions the trademark will be considered as abandoned. If a company permits anyone to use its name for just any product, there would be no value left to the name and it will bear no significance. A naked license results in the mark losing its identity as a symbol of equal quality since there are no restrictions over the products or services that bear the mark. Therefore, it is deemed an absolute assignment and that the mark is abandoned by the assignor.