20-F: Qifu Technology Inks Trademark Licensing Deal with Beijing Qihu Technology

Qifu Technology secures a trademark licensing agreement with Beijing Qihu Technology, granting rights to use specified trademarks in the PRC from January 1, 2024, to December 31, 2026.

Summary

• Qifu Technology, through its subsidiary Shanghai Qiyu, has entered into a Trademark Licensing Agreement with Beijing Qihu Technology Co., Ltd.
• The agreement, effective December 29, 2023, grants Qifu Technology the right to use specific trademarks within the PRC (including Hong Kong, Macau, and Taiwan regions).
• The license term spans from January 1, 2024, to December 31, 2026, with provisions for potential renewal negotiations.
• Qifu Technology is obligated to pay Beijing Qihu Technology a license fee of RMB 25 million per quarter, totaling RMB 100 million annually, for the period from January 1, 2024, to December 31, 2024.
• The agreement outlines stipulations regarding trademark usage, protection, and handling of infringements.
• It also includes clauses addressing breach of contract, termination conditions, force majeure, confidentiality, and dispute resolution.

Sentiment

Score: 7

Explanation: The document outlines a standard business agreement. The sentiment is neutral to positive, reflecting a typical business transaction with clear terms and conditions.

Positives

• Qifu Technology secures rights to utilize established trademarks, potentially enhancing brand recognition.
• The agreement provides a framework for intellectual property use and protection.
• The agreement allows Party A to license other intellectual property rights related to the Licensed Trademarks to Party B Group.
• The agreement allows Party A or its designated Affiliates to terminate such license at any time without the consent of Party B Group.

Negatives

• Qifu Technology incurs a substantial annual license fee of RMB 100 million.
• Party B Group shall not assign the license granted to it to any Third Party or provide guarantee to any Third Party by such license, nor shall it sub-license or sub-authorize the use of the Licensed Trademarks to any Third Party, whether such assignment, guarantee, sub-authorization or sub-license is with or without consideration.
• Party A or its designated Affiliates may terminate such license at any time without the consent of Party B Group.

Risks

• The agreement's enforceability is subject to the interpretation of PRC laws, which can be uncertain.
• Breach of contract by either party could lead to financial losses and legal action.
• Force majeure events could disrupt the agreement's performance.
• Infringement of trademark rights by third parties could lead to legal disputes and costs.
• The agreement could be terminated if Party B Group's use of the trademarks adversely affects Party A's reputation.
• The agreement could be terminated as required by laws, regulations, policies or guidance of relevant regulators or governmental authorities.

Future Outlook

The parties will negotiate license-related matters for the following year within three months prior to the expiration of the License Term.

Industry Context

Trademark licensing is a common practice in various industries, allowing companies to leverage brand recognition and expand market reach. This agreement suggests Qifu Technology aims to strengthen its brand presence in the PRC market.

Related Party Transactions

• The agreement is between Qifu Technology and Beijing Qihu Technology Co., Ltd., a related party.

Stakeholder Impact

• Shareholders: The agreement could positively impact shareholder value by strengthening Qifu Technology's brand and market position.
• Customers: Customers may benefit from enhanced brand recognition and potentially improved products/services.
• Suppliers: The agreement's impact on suppliers is likely minimal.

Next Steps

• Party A to provide Party B Group with title certificates of the Licensed Trademarks within 60 days.
• Parties to enter into a separate trademark license agreement (if necessary) in respect of the Licensed Trademark covered by this Agreement in accordance with the relevant laws and regulations of the PRC.
• Parties to negotiate the license-related matters for the following year within three months prior to the expiration of the License Term.

Key Dates

Keywords

trademark licensing, intellectual property, license agreement, Beijing Qihu Technology, Shanghai Qiyu, PRC, Qifu Technology, trademarks