Exhibit 10.14
Trademark License Agreement
This Trademark License Agreement
(“Agreement”) is made by and between TCL Multimedia
Technology Holdings Limited (“Licensor”), with an
office at 13/F TCL Tower, 8 Tai Chung Road, Tsuen Wan, New
Territories, Hong Kong, and Opta Systems LLC dba GoVideo
(“Licensee”), a Delaware limited liability company,
with an office at 7835 E. McClain Drive, Scottsdale, AZ 85260
(together with Licensor, (the “Parties”), as of
August 30, 2005 (“Effective Date”).
WITNESSETH:
Whereas Licensor owns certain names, brand
names, service marks, trade dress and/or trademarks; and
Whereas Licensee desires to the right to use the
Trademarks in connection with the distribution, sale, advertising
and promotion of certain products, to supply certain consumer
electronics products to third parties, and/or to sub-license the
Trademarks to third parities, subject to the terms and conditions
set forth herein, including without limitation licensee’s
payment of certain license fees.
NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
DEFINITIONS
“Territory” means the trade names,
brand names, service marks, trade dress and/or trademarks
identified in Schedule A.
“Licensed Products” means the
products as defined in Schedule B.
“License Fees” means the fees as
defined in Schedule C.
“Promotional Period” means
August 30, 2005 through October 24, 2008.
“CineVision” means the Cinevision
brand.
“Subsidiary” means any entity in
which Licensor or Licensee now or hereafter owns or controls
directly or indirectly, fifty percent (50%) or more of the stock or
participating shares entailed to vote for the election of director
of such entity.
1.
License
1.0
License grant/Supply
1.0.1
License grant: Subject to the terms
and conditions of this Agreement, Licensor hereby grants to
Licensee a non-transferable, exclusive, sub-licensable, limited
right (as
set out in this Agreement) and license to use
the Trademarks in connection with the distribution, sale,
advertising and promotion of certain consumer electronics products,
in the Territory, and to sub-license the Trademarks to third
parties under which third parties will be able to use the
trademarks in connection with the distribution, sale, advertising
and promotion of certain consumer electronics products, for sale in
the Territory, for the term of this Agreement, subject to
Licensee’s payment to Licensor of the License fees stated in
Schedule C.
1.0.2
License Grant for Cinevision:
Licensor hereby grants Licensee a non-transferable, exclusive,
sub-licensable, limited rights and license to sell, distribute,
advertise, promote, and sub-license consumer electronics products
bearing Cinevision. Licensee agrees to sub-license CineVision on a
royalty-free basis to TTE Corporation (“TTE”) under a
separate letter agreement during the Term of this
Agreement.
2
Trademark Usage
2.1
Markings: Licensee shall include all
notices, markings, and legend as required by applicable laws,
rules or regulations, or as reasonably requested in writing by
Licensor, in order to give appropriate notice of Licensor’s
trademark rights.
2.2
applicable Laws: Licensee shall
comply with all applicable United States laws and other applicable
laws, rules and regulations related to advertising and
promotions or otherwise in connection with the
Trademarks.
2.3
Licensor Ownership: Licensee
acknowledges and agrees that:
2.3.1
the Trademarks, and all goodwill
associated therewith, are owned solely by Licensor; all use of the
Trademarks shall inure solely to the benefit of and be on behalf of
Licensor;
2.3.2
the license granted herein is not
intended to be and shall not be construed as an assignment to
Licensee of any of Licensor’s right, title or interest in the
Trademarks; and nothing herein confers on Licensee any right, title
or interest in the Trademarks other than the limited right to use
the Trademarks in accordance with this Agreement;
2.3.3
Licensee shall not knowingly do or
cause to be done. Or omit to do or be done, anything with the
intention or impair the value of the Trademarks, or any of the
rights of Licensor in the trademarks;
2.3.4
Licensor retains the right to use or
to license the use of the Trademarks for any business, goods or
service, except specifically in connection with the Licensed
Products sold in the Territory as expressly provided for in this
Agreement;
2.3.5
Upon termination of this Agreement,
Licensee shall cease use of the Trademarks, unless otherwise
expressly permitted herein; and
2.3.6
Licensee’s foregoing
acknowledgements, covenants and agreements shall survive the
termination of this Agreement for any reason.
2.4
Restrictions on License: Licensor
grants no rights to Licensee with respect to the trademarks other
than those expressly granted herein. Without limiting the
foregoing, Licensee agrees that it shall not directly or
indirectly, at any time, anywhere in the territory:
2.4.1
use any of the Trademarks in
conjunction with any products other than the Licensed products,
unless Licensor grants prior approval to Licensee on a case-by-case
basis;
2.4.2
use any of Licensor’s other
trade names, trademarks, service marks or trade dress, that is
other than the Trademarks in accordance herewith, unless Licensor
grants prior approval to Licensee on a case by case
basis;
2.4.3
use any of the Trademarks in or as a
company name or in combination with any other trade name,
trademark, service mark or trade dress unless approved in advance
in writing by Licensor grants prior approval to
Licensee;
2.4.4
use any trade name, trademark,
service mark or trade dress which is confusingly similar to, or
which would dilute, any of the Trademarks, unless Licensor grants
prior approval to Licensee on a case-by-case basis;
2.4.5
use the Trademarks in any way that
would be in consistent with its use in connection with the Licensed
Products;
2.4.6
apply to register or own any
registration of any of the Trademarks, except in furtherance of the
purposes of this agreement;
2.4.7
assign or transfer this Agreement or
any interest in it in whole or in part without Licensor’s
prior written approval, this Agreement being personal to
Licensee.
3
Enforcement
3.1
Third Party Actions: If Licensee
learns of any third party trade name, service mark, trademark or
trade dress which is likely to cause confusion with or to dilute
any of the trademarks or of any infringement by a third party of
the Trademarks, Licensee shall promptly notify Licensor in writing
describing in reasonable detail such confusion, dilution, or
infringement of the Trademarks.
3.2
Licensor Bring Action: Licensor
shall have the right in its sole discretion to decide what action,
if any, to take and whether to institute and prosecute any actions
or proceedings against such confusion, dilution or infringement of
the Trademarks. Licensor agrees to defend and protect the
trademarks.
3.3
Licensee Bring Action: If Licensor
elects not to institute an action or proceeding, Licensee may do so
only with the prior written approval of Licensor, which shall not
be unreasonably withheld, and if Licensee is approved to bring an
action or proceeding, Licensor agrees to assist Licensee if
requested and/or required to do so (as an indispensable party) in
such action or proceeding at licensee’s expense.
3.4
Joinder of Licensee: If Licensor
elects to institute and action or proceeding, it may do so in its
own name alone or may join Licensee as a party. In the event that
Licensor elects to join Licensee as a party, Licensee shall not
object to such joinder and all costs associated with
Licensee’s joinder and participation in the action or
proceeding shall be at Licensor’s expense.
3.5
Cost of Litigation: except as set
forth herein, any litigation shall be prosecuted solely at the cost
and expense of the party initiating same, and all sums recovered,
whether by settlement, judgment or otherwise in excess of the
amount of reasonable attorney fees and other out-of-pocket
expenses, may be retained by the party initiating the
litigation.
3.6.1
Assistance: Upon request of the
party initiating the litigation, and at its expense, the other
party shall furnish all documents and information, execute all
papers, testify on all matters and otherwise cooperate in
prosecuting the liti