A trademark co-existence agreement is an agreement between two parties to use a similar trademark for marketing purposes without interfering with the other party`s businesses. Such agreements are often concluded because the parties require only the regional use of their trademarks and, therefore, the use of a trademark by other companies will not harm their activities. Co-existence agreements may also include designs, copyrights and even patents. [Citation required] An agreement on the coexistence of trademarks should clearly include: all parties to the agreement, the trademarks or logos indicated to co-exist, an agreement on the domain names used by each party, a list of the areas and geographical areas that contain the trademarks or logos in which coexistence is permitted and prohibited, as well as all relevant plans for the expansion of the company. In addition, the co-existence agreement should include the start and end date of the agreement, a clause relating to the jurisdiction of the agreement and a dispute settlement clause. The purpose of a brand co-existence agreement is that brands are often used in “good faith” by several companies. The lack of formal agreement does not affect a company that uses the brand, as it is present in different regions of the world. However, with business growth, overlaps can develop and both parties may have significant rights to the use of the trademark. In some cases, companies that extend and use the same brand or similar brand generally enter into a co-existence agreement to avoid the use of the trademark in an undesirable or hurtful manner.
Co-existence agreements can provide practical solutions to companies that are concerned about being sued for trademark infringement, as proactive agreements can avoid the high cost of litigation.  The public interest must be taken into account when reaching an agreement on the coexistence of trademarks. This is often the case in situations where two medical companies carry the same brand for unique products, which could cause confusion and have serious consequences for consumers. Companies must also comply with the rules on cartels and abuse of dominance. Courts may find that similar marks can affect competition in the marketplace. A formal agreement on trademark coexistence recognizes the rights of both parties to use the trademarks contained in the agreement for marketing purposes. The agreement may include a breakdown of the regions in which companies using contracting parties can use the trademark, the methods in which the mark can be used or the categories of products and services for which the trademark can be used (in conjunction with the Madrid system for international trademark registration). .