Why is a licensor required to exercise quality control over a licensees goods and services?
Control is needed because a trademark represents the trademark owner’s reputation in goods and services of a certain level of quality and consumers tend to rely upon this reputation in making purchasing decisions. If a licensor does not exercise sufficient control over the quality of the goods and services offered by the licensee, the registration may in some countries (for example, the United Kingdom) become vulnerable to attack by the licensee or a third party. In other countries, such as the United States, the trademark may be deemed abandoned.