Why Register an Industrial Design License in Myanmar?
The registration of industrial design rights licensing in Myanmar is a crucial step in safeguarding the legal and commercial interests of both licensors and licensees. As the IP framework in Myanmar matures, compliance with formal registration requirements will be increasingly scrutinized. For companies looking to commercialize or expand the reach of their designs in 2025, understanding and following the legal procedures for licensing registration is essential.
Why Register an Industrial Design License?
Registering a license agreement for an industrial design is not merely a formality; it provides tangible legal benefits, including:
- Enforceability against third parties: Only registered licenses are opposable to third parties.
- Clear legal rights and obligations between the licensor and licensee.
- Evidence in disputes, especially regarding scope and duration of use.
- Commercial clarity for investors, partners, and customers.
Penalties for Unregistered Licensing
While licensing without registration is not strictly prohibited, it has no legal effect against third parties. This means:
- The licensee cannot enforce design rights against infringers.
- There is a lack of legal certainty for commercial partners.
- Disputes may become complex without an official record.
Key Considerations When Licensing Industrial Designs in Myanmar
Exclusive vs. Non-Exclusive Licenses
- An exclusive license gives the licensee the sole right to use the design, including excluding even the licensor.
- A non-exclusive license allows the licensor to continue using or licensing the design to others.
Sub-licensing and Assignment Restrictions
- Myanmar law allows licensing, but sub-licensing is only permissible if expressly provided in the original agreement.
- A license does not transfer ownership of the design.
Royalties and Taxation
- Royalty payments under IP license agreements are subject to taxation under Myanmar’s tax laws.
- Proper tax declarations and remittance must be ensured to avoid liability.
Duration and Renewal
- The license agreement must not exceed the term of the design registration.
- Upon renewal of the industrial design, the license may need to be re-registered or extended.
