Trademark Program History
In 1981 the Board of Regents established a licensing program to protect its name and identifying marks. The System trademarks are registered with the U.S. Office of Patent and Trademarks, the State of Texas, and in many foreign countries. These marks are the exclusive property of the Board of Regents. Policies and procedures have been developed to license the use of the marks under the Trademark Policy.
The Office of Trademark Licensing along with the Collegiate Licensing Company (CLC) and Strategic Marketing Affiliates (SMA) administers the licensing program. The success of the licensing program is evidenced by the fact that annual royalty income from more than 600 licensees now exceeds $800,000. The royalty income is used to support scholarship funds of the institutions. As a result, licensees and the purchase of licensed products make a valuable contribution to the UT System. Consequently, the purchase of products licensed by the Office of Trademark Licensing provides funds that permit persons with financial need to attend a university. Conversely, the sale of a product with an unlicensed mark is an infringement of UT System's valuable trademark rights and diminishes the ability to provide scholarships for students.
A trademark or service mark may be a word, name, symbol, or any combination thereof that is used by its owner to identify or distinguish goods or services from those of others. Rights in trademarks and service marks arise as a result of use of the mark in commerce to identify the source or origin of goods and services. In addition, a trademark remains the property of the owner so long as the owner continues to use it properly as a trademark.
Basic License Agreement Information
The UT System runs a limited licensing program and does not accept all applicants. The System will only license finished products that are ready for sale. The license is for one to three years and it grants the non-exclusive right to use the licensed marks in connection with products of quality acceptable to the Board of Regents.
System components' royalty rates breakdown as follows:
- 8% for UT San Antonio, UT Permian Basin, UT Dallas, UT Tyler, UT Brownsville, UTHSC San Antonio, UTMB Galveston, UT Arlington, UT Pan American, UTEP, UT Southwestern and UTHSC Houston
- 10% for UT Austin
Each component maintains an annual advance on royalties ranging from $100 to $4,000 depending on the institution. This advance will be used to pay royalties that are accrued throughout the year.
The System requires licensees to maintain product liability insurance.
Licensees must indemnify and hold harmless The University of Texas System, its Regents, officers, employees and agents for any liability attributable to any of the licensee's products bearing the trademarks of any component institution of the UT System.
Licensing and Royalties
Any person, business, or organization desiring to use trademarks of The University of Texas System in any manner and for any purpose must be licensed to do so. The UT System has arranged for licenses to be issued by the Collegiate Licensing Company (CLC) and Strategic Marketing Affiliates (SMA) on the component institutions behalf. A separate license must be obtained for each institution within the System.
CLC and SMA generally executes two types of agreements; 1) traditional retail agreement for the production of emblematic merchandise which will be sold by licensees to retail establishments 2) promotional or premium items used for an approved limited-duration commercial use on products. Promotional use is more involved and must comply with Regents' Rules and Regulations regarding sponsorship and solicitation.
The following will not be licensed:
- Stationery--Business-size, letterhead paper using the name or seal of a component institution of The University of Texas System.
- Certificates of Recognition--using the 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, and fuels.
- 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.
- Services--except in accordance with the special requirements of the Office of General Counsel applicable to services.
For more information about the Office of Trademark Licensing contact:
Craig R. Westemeier
Associate Athletics Director