Intellectual property (IP) licensing enables foreign businesses to expand their market reach, monetize their assets, and establish strong commercial partnerships in Turkey. Whether you are licensing a trademark, patent, or software, working with a reputable Turkish Law Firm and a skilled English Speaking Turkish Lawyer ensures your licensing agreements are fully compliant with Turkish law. This legal guide, prepared by the Best Lawyer in Turkey, covers the essentials of IP licensing in Turkey for foreign investors and right holders.
What Is Intellectual Property Licensing?
IP licensing is a legal arrangement that allows one party (the licensor) to permit another party (the licensee) to use intellectual property rights under defined conditions. Licensing agreements in Turkey commonly involve:
- Trademarks
- Patents
- Industrial Designs
- Software and copyright-protected content
Legal Framework Governing IP Licensing in Turkey
- Industrial Property Law No. 6769
- Turkish Code of Obligations (Law No. 6098)
- Law on Intellectual and Artistic Works (Law No. 5846)
- International Conventions (TRIPS, Paris Convention, Berne Convention)
Types of Licensing Agreements in Turkey
- Exclusive License: The licensee has exclusive rights and even the licensor cannot use the IP in the licensed territory.
- Non-Exclusive License: Multiple parties may be granted rights simultaneously.
- Sublicensable License: Allows the licensee to grant sub-licenses to third parties.
- Territorial License: Specifies a particular region or country where the IP can be used.
Mandatory Provisions for IP Licensing Contracts
- Identification of licensed IP
- Scope and duration of the license
- Payment terms (royalties, fixed fees, milestones)
- Territorial and field-of-use limitations
- Quality control and audit rights
- Termination clauses and dispute resolution mechanisms
Registration of Licensing Agreements
Under Turkish law, certain types of IP licenses (e.g., trademarks and patents) should be registered with the Turkish Patent and Trademark Office (TURKPATENT) to be enforceable against third parties.
Tax and Financial Considerations
- Withholding tax on royalty payments to foreign licensors (generally 20%, reduced under DTTs)
- VAT obligations on IP licensing agreements
- Transfer pricing rules and arm’s length principle for intra-group licensing
Common Licensing Disputes and How to Avoid Them
- Non-payment of royalties
- Breach of exclusivity clauses
- Misuse of IP beyond the scope of license
- Ambiguity in term or territory clauses
Well-drafted contracts and legal counsel minimize the risk of costly disputes and protect your intellectual property rights in Turkey.
Why Work with ER&GUN&ER Turkish Law Firm?
- Drafting and negotiating customized licensing contracts
- Due diligence on IP ownership and validity
- Registration with Turkish IP authorities
- Royalty structure planning and tax compliance
- Litigation and arbitration support for IP disputes
Related Services
- Intellectual Property Law in Turkey
- Commercial Contracts in Turkey
- International Arbitration in Turkey
Frequently Asked Questions (FAQs)
- Is it mandatory to register a license agreement in Turkey? For enforceability against third parties (e.g., in trademark or patent licensing), yes.
- Can I license my foreign-registered IP in Turkey? Only if the IP is also registered or recognized under Turkish law.
- Are software licenses covered under IP law? Yes, software is protected under copyright provisions of Law No. 5846.
- Can licensing income be sent abroad? Yes, with proper documentation and tax compliance, royalty payments can be transferred internationally.
- Can licensing be limited to a specific Turkish city? Yes, licensing terms can be geographically limited within Turkey.
- Do I need a local representative? It is strongly recommended to appoint one for contract enforcement and registration procedures.
- Are Turkish courts competent for IP license disputes? Yes, unless the contract specifies arbitration or foreign jurisdiction.
- Can a license be terminated early? Yes, based on breach, mutual consent, or force majeure clauses.
- Are bilingual contracts valid in Turkey? Yes, English–Turkish bilingual contracts are commonly used and enforceable.
- Why work with ER&GUN&ER? Our English Speaking Turkish Lawyers provide end-to-end IP licensing legal services tailored to international business needs.
Conclusion: Secure Your IP Licensing Strategy in Turkey
Licensing your intellectual property in Turkey can create new revenue streams and establish long-term business value—when done right. Work with the Best Lawyer in Turkey at ER&GUN&ER, a leading Turkish Law Firm, and get support from English Speaking Turkish Lawyers to build enforceable, tax-efficient, and strategically sound licensing agreements. Contact us today.