A trademark licensing agreement is a legal contract between two parties: the owner of the trademark, called the Licensor, and the organization or individual who is seeking to use that mark, called the Licensee. In this agreement, the Licensor grants the Licensee the right to use their trademark in exchange for some form of compensation, most commonly a royalty payment. The scope of usage rights must be defined in detail in the license, including restrictions on geographic location, product types and sub-brands. Additionally, the Licensor will preserve ownership of the mark and maintain control over its quality standards through regular audits. All other details of the agreement can be customized to suit the specific needs of both parties.