Licensing in Spain

Starting a business in Spain requires obtaining special permits & going through a verification process. Let’s see what other requirements potential investors will have to comply with to be able to obtain a business license in Spain.

Spain: Licensing Restrictions

Carrying out financial transactions in Spain requires having an individual tax ID. A tax ID is also required to set up a Spanish company & submit documents to government agencies. 

Capital investments are deemed substantial if they meet one of the below criteria:

• they qualify for acquisition of real estate in Spain & are estimated at five hundred thousand euros (or more);
• it represents acquisition of government-issued bonds & are estimated at two million euros (or more); it represents acquisition of stakes of Spanish investment funds/companies & is estimated at one million euros (or more);
• it results in creating jobs;
• it fosters scientific & technological progress;
• it favorably impacts a socio-economic situation in an area where it takes place.

Types of Licensing Agreements

Licensing agreements in Spain are divided into several types:

• licensing TMs & trade names in Spain;
• transfer of technologies & patents in Spain;
• franchise agreements;
• licensing of IPR in Spain;
• licensing rights to celebrities’ photos;
• licensing of designs.

International Legal Environment

The Kingdom of Spain is a signatory to:

• IPR Agreements on Trade;
• Paris Convention;
• Patent Cooperation Agreements.

Spain: IPR Registration

Once IPR expire or are declared invalid, an IPR agreement is deemed null & void. Invalidation or expiration also precludes any subsequent royalty payments.

If there’re additional rights, an IPR agreement remains valid with regard to those rights; however, royalties will need to be re-discussed.

Requirements for Foreigners

Non-residents can register TMs in the Kingdom of Spain. They can also register utility models, designs, copyrights & patents. The Paris Convention’s priority is applicable in the Kingdom of Spain; therefore, individuals referring to it are required to furnish evidence corroborating their priority right.

Unregistered Rights

It is permitted to license unregistered IPR in Spain. No registration is required for know-how & unregistered designs.

Initiating Proceedings Against 3rd Parties

IP owners can file an IPR infringement lawsuit in Spain. Filing an infringement lawsuit doesn’t require applying for an EU TM license.

Sublicensing

Pursuant to the TM Law, licensees are forbidden to transfer a TM license to 3rd parties unless the latter express their explicit consent to this in a license agreement. Hence, sublicense rights can only be provided on the basis of a contract.